The country’s latest Housing Industry Association (HIA) figures reveal that the affordability of Australian property has worsened in recent months, as prices have easily outstripped wage growth.
The median property price in Australia is currently AUS$540,200 – 9.1 per cent higher than it was a year ago.
The HIA said the national deterioration in the affordability index was driven by just two cities – Perth and Sydney – with affordability actually improving in all other capitals over the same period. In fact, affordability in Sydney is now rated critical – a point never seen before in the 15 years that the HIA index has been in existence.
"Affordability in Sydney has now declined past a critical level," the HIA report. said. “Acquiring and servicing a mortgage on a house in Sydney now requires more than two standard Sydney incomes.”
A recent survey carried out by Australian property website Domain.com.au reported that there is only one suburb left in Sydney that offers a median property price below AUS$500,000. Moreover, of June 2017, the median price for the Greater Sydney Area was sitting at an eye-watering AUS$1,178,417.
The Australian Government has recently announced it will look to offer more help for first time buyers while tightening purchasing criteria for overseas buyers. Foreign investors have long been blamed for pushing Australian property prices up, although some surveys and reports shed doubt on the validity of this belief.
Many states have raised stamp duties for foreign property investors, while in May it was announced that foreigners purchasing a home worth over AUS$700,000 would be subject to a 12.5 per cent tax unless they receive a special exemption.
If ever there was a time to get your currency sorted before moving to, or acquiring a home in Australia, this is surely it, so you can save money wherever possible and get the right guidance on Australian property transactions.