Real estate sales across the world are inching higher after record-breaking home sales and the value of property is climbing faster than at any time in nearly a decade.
The Australian dollar is off more than 40% since early October, as the market for Australian-listed property surged ahead of the election, fuelled by record-high sales.
The market has been fuelled by an influx of money from investors who have poured money into property markets around the world, with record-low interest rates helping boost the market.
Real estate prices in the US, UK and the US have all risen sharply in recent weeks, with sales up by more than 80% over the past year.
In Australia, property prices are rising by a quarter in the last year, according to data from the National Property and Investments Commission (NPI).
The NPI said the price index is the first to reveal how real estate markets are evolving.
It said the median price is $941,500 in the Sydney and Melbourne markets, up by $1.5 million on a year ago.
However, the average price for a home in Sydney rose by $743,000, or 11.5%, while the median in Melbourne rose by 5.6%, or 7.7%.
The NPDC said the trend in Australia’s property market is encouraging.
The median price of a home is $6,942,000 in the Northern Territory, up 7.4% over a year earlier, and the median for the rest of the country is $8,719,000.NPDC chief executive officer Tony Richardson said the property market has the potential to grow to more than $1 trillion, but the market is still relatively young.
“The real estate market is not as mature as the housing market is and this is the reason why there is such a lack of liquidity,” Mr Richardson said.
The median price for Sydney homes is now $1,818,000 while the average is $1 to $1-million, up 2.3% from last year.
The average price of homes in Melbourne is now more than half of Sydney, at $1 million.
Mr Richardson said many Australian investors are looking to get into property, and this has helped drive the price increases.
“Many Australians are looking for a better return on their capital than what they are seeing in Sydney and the Melbourne market,” he said.
“In Australia’s housing market, a median property price of $1m or more has remained relatively constant over the last five years.”
There is a lot of potential in the housing and property markets in Australia and that is encouraging.
“But the price of properties is still not keeping pace with demand, with the median house price now $5.8 million, more than 20% higher than a year previously.
Mr Morrison said the national median price has risen by almost 30% in five years, and that the median property prices for the state of WA have jumped by more in five.”
What is driving this increase is the very low interest rates in Australia,” he told ABC News.”
That’s been a real positive.
But it’s also a sign that some of the factors driving that are a little bit more difficult to break, because you have a relatively low population density, so you have people in a lot less housing.
“The NPEC said its analysis showed Australia’s population is growing by 2.4 million people a year, and housing supply is falling.”
Mr Morrison told the ABC the government was planning to increase housing supply by 5%, and to build more new housing.””
But we’re also seeing a very slow and steady rate of growth in housing supply.”
Mr Morrison told the ABC the government was planning to increase housing supply by 5%, and to build more new housing.
“It’s important that we have a robust supply of new housing,” he added.
“But that’s also an opportunity for more people to own their own homes, and to make that investment in their own home.”