Is Australia Witnessing a Surge in Housing Prices?

Is Australia Witnessing a Surge in Housing Prices?

It’s no secret that the real estate market and housing prices are subject to fluctuation all around the world. Whether you are living in a lavish condo in New York or a villa next to a beach in the Bahamas, housing prices increase or decrease every now and then, especially since the pandemic has hit us! Australian cities are witnessing a steady rise in housing prices which has left many experts speculating varying results and outcomes which have their own advantages and disadvantages.

People’s priorities have shifted, and due to the unprecedented and severe lockdowns imposed all over the world, people have been able to save up as they were forced to cut down on food and alcohol expenses, leisure travel expenses, transportation costs et cetera. What this has done? This has led to an unsustainable increase in demand for property, surge of property investors and therefore a directly proportional increase in housing prices!

What’s to be noted is that Australian housing prices are surging at their fastest pace since 1989. This rise has been termed “Unsustainable” by many experts across the country. Australia’s prominent cities like Sydney, Canberra and Darwin have witnessed a whopping 20% rise in property rates which has made buying a house a tough row to hoe. The rising prices have left experts, investors and new buyers bewildered. 

So between the surge in prices and low vacancy rates, who is being affected gravely? The new property buyers! Yes, the new property buyers are being affected by this unprecedented surge in housing prices. First time property buyers are faced with unprecedented and extremely high prices which has made even the thought of buying a property, an expensive dream. However, they can breathe a sigh of relief thanks to the various government incentives like the First Home Owner Grant or the FHOG, the First Home Loan Deposit Scheme or FHLDS et cetera.

What does rising housing prices have in store for us?

Rising housing prices amid lockdowns throughout the country due to the coronavirus pandemic will engender a great performance by houses in good neighborhoods. Houses in a healthy and happy community will outperform other areas as Covid-19 pandemic has brought us closer to our neighbours and has brought a very concerning topic to light, the need for a good neighborhood. When the lockdown confined us in our homes, we realised the value of good neighbors more than ever. This is why people will also be inclined to invest in areas with a good neighborhood, which will inevitably lead to rising prices across the country. We hope various incentives make housing affordable for first time buyers, inspite of rising prices, and only does wonders for those who bought property for investment purposes to sell at handsome prices. 

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