Property in Australia Economy
Property is a huge force in Australia’s economy. Residential property makes up $6.9 trillion of the Australian economy. For comparison, Superannuation comprises $2.2 trillion and Australian listed stocks comprises $1.7 trillion. There are 9.7 million residential properties in Australia and another 220,000 properties are built each year. There are 456,840 property sales each year with a gross value of $267 billion per year. 51.6% of household wealth is held in property in Australia.
Australia Property Stock
Detached housing is the dominant form of property in Australia, making up 70% of the dwelling stock. Dwellings in multi-unit developments form 25% of property in Australia, up from only 5% twenty years ago. This change can be attributed to greater concentration of employment in urban areas. This is impacting how families are choosing property in Australia. Generally, households are choosing to reside closer to employment opportunities and the greater amenities/convenience of urban areas rather than choosing a larger detached house further away from urban areas. This is the result of families finding a lifestyle balance between affordability, commuting time, and dwelling size.
Investment Property in Australia
Property has been the best investment option in Australia for the last twenty years. A Melbourne investment property purchased in 1996 with a $30,000 deposit would have matured into $650,000 of profit by 2016. Foreigners buying property in Australia face certain restrictions, especially if they intend to use it as an investment. The high returns of property in Australia has drawn the attention of many foreign investors, and these restrictions are intended to ensure that foreign investors are contributing to increased housing supply.
Property Markets in Australia
Property in Australia can be broken down into several markets based on capital cities and their surrounding suburbs. Sydney was Australia’s hottest property market for many years with the highest property values, but has been experiencing a decline in recent months. Melbourne is Australia’s next largest property market and a great market for investment properties in Australia. Brisbane is another city to watch in the coming years as new jobs and infrastructure are completed which will drive up demand and prices. Some other capital cities perform well but the Eastern Seaboard has the historically strongest property in Australia.
While all reasonable care has been taken in the preparation of this article, we accept no liability for any direct or indirect loss or damage as a result of reliance upon this article. Always consult an expert before making investment decisions or property purchasing decisions.