Sydney Property Prices Continue To Rise
Property prices in Sydney, Australia have consistently remained the highest than any other Australian city, as surging figures continue to add to affordability concerns.
Q4 of 2020 saw median property prices in Sydney increase by 4.8% with prices reaching AUD 1,211,488. If this level of growth is to continue, median property prices in Sydney are set to surpass AUD 1.3 million by summer 2021.
Australia’s significant property growth experienced during Q4 also saw median prices reach AUD 936,073 in Melbourne, AUD 855, 530 in Canberra and AUD 738,000 in Brisbane.
From September 2020, the following cities experienced substantial price growth year on year:
- Melbourne – 1.6%
- Brisbane – 3.7%
- Adelaide – 6.8%
- Canberra – 9.8%
- Perth – 2.4%
- Hobart – 15.7%
- Darwin – 7.2%
The primary reason for soaring house prices in Australia is the result of low interest rates and a strong recovery in consumer confidence as COVID-19 cases began to decline across the country. The Reserve Bank of Australia (RBA) has indicated that interest rates will continue to remain around 0.1% for the next four years.
Whilst property price increases are unlikely to impact high income earners, young people and those whose occupations have been impacted by the coronavirus pandemic are likely to struggle with affordability.
November 2020 saw housing loans in Australia reach a record high of AUD 23.96 billion. With property prices continuing to surge, it’s feared that it will become increasingly difficult for lower income earners to save for a deposit.
Australia property forecast 2021
According to Demographia’s annual housing affordability survey, Australia has the third most unaffordable property market, falling just behind New Zealand and Hong Kong. However, forecasts for 2021 show Australia’s property prices and demand show no signs of slowing down.
Commonwealth Bank recently forecast that Australia’s property prices could increase by 8% during 2021. As a result of the coronavirus pandemic, Australian demand has been driven by buyers wanting to relocate to beachy areas now that the majority of the country is working from home.
Pete Wargent, from buyersbuyers.com.au, commented; “assuming Australia can keep the virus under control, house prices will be breaking new highs this year. We’ve already seen Sydney getting there and Melbourne won’t be far behind.”
Some estate agents believe that Sydney’s house prices could continue to surge by up to 6% in 2021 and between 1-5% in Melbourne. Brisbane is also set to see strong property growth this year. Prices in the Queensland capital are expected to increase by 3-5% in 2021.
The cheapest places to buy property in Australia
Whilst it’s becoming increasingly difficult for first time buyers to get on the property ladder in some of Australia’s biggest cities, there are a number of locations in Australia which remain reasonably priced.
As you would imagine, the areas with the cheapest property prices are often remote areas. However, with more people now working from home, the opportunity to move to a quieter location could now be possible.
Realestate.com.au states that the following locations are the cheapest areas to buy a house in Australia:
- Peterborough, South Australia – AUD 69,000
- Rangeway, Western Australia – AUD 70,000
- Tara, Queensland – AUD 72,000
- Charleville, Queensland – AUD 77,500
- Merredin, Western Australia – AUD 80,000
- Monto, Queensland – AUD 85,000
- Rosebury, Tasmania – AUD 85,000
- Queenstown, Tasmania – AUD 91,500
- Mount Morgan, Queensland – AUD 100,000
- Dysart, Queensland – AUD 103,750
There are also larger areas of Australia where it may be cheaper to buy a house, rather than to rent. Monthly mortgage repayments in Carlton, Melbourne are reportedly up to AUD 675 cheaper than rental payments. Mortgages repayments in Coolangup, Perth are said to be up to AUD 597 cheaper than rent, while Logan, Brisbane could be AUD 590 less than rent and Liverpool, Sydney could be AUD 190 cheaper than rent.
Saving money when buying a house abroad
No matter where you are looking at moving to, one way you can ensure you pick up the best deal possible when it comes to buying a house in a new country is by ensuring you make the most of the currency exchange process.
When exchanging large lump sums, slight fluctuations in the currency exchange markets can have a huge impact on the money you’ll have available to start your new life.
The British Pound-Australian Dollar (GBP/AUD) exchange rate has been fluctuating wildly in the past three months. For example, on 20th January GBP 1 would have purchased you AUD 1.76, while on the 4th February you would have received AUD 1.80.
Currency fluctuations mean that exchanging funds from the sale of your UK home into Australian dollars (AUD) can create a significant difference in less than one month. As a result, it really does pay to ensure that you send international payments at just the right time to avoid negative financial impacts.
Fortunately, you don’t have to be a financial expert or constantly monitor exchange rates to make sure you get the best deal when buying a property abroad. This is what foreign exchange specialists like Halo Financial are here for.
We understand why the exchange rates are moving and just what impact this has on your currency transaction.
What’s more, we can also explain how to make your money go further and give you a range of options on exactly when you wish to exchange, and how much you should exchange at a time.
To find out more about our foreign exchange solutions, please give us a call on 020 7350 5474.