Australian Property Market Hike – Curse or a Golden Opportunity

Buying House A Good Option Now?

Nobody in this world can imagine a happy world without a house. Moreover, most people buy property as an investment. Well! Property has done really well as an investment too as people get some good returns from their house only over a period of time. Buying property has always been a great interest for a lot of people. But is this a good time for buying an investment property in Australia while keeping the current scenario in the mind?

In the recent guidelines, there is a huge hike in Australian house prices. Due to this sudden hike in house prices, a lot of people have a dilemma that is this the right time to buy a house? As it may affect their investment adversely too. Let us know what led to these consequences.

What Led To The Hike In Australian Real Estate Market?

In the year 2021, we have witnessed a great hike in property prices in Australia. This rate of the hike is the fastest in the past 3 decades.

The value of real estate property prices in Australia is at its peak. Some of the major suburbs of Australia’s capital cities have seen more than a 50% increase in house prices this year. Some research is saying there will be an increase in buying an investment property due to lock down and COVID. And such an increase in real estate investing is not likely to happen again.

Sydney housing prices have increased by more than 24%, Melbourne by 15%, and Brisbane by 20% in the last year. In major cities, housing prices have increased by 23%, while in the regions, they have increased by 30%. As a result, the number of $1 million suburbs in Australia has reached an all-time high.

Does It Affect The Mortgage Rates?

Well! Some people prefer to take a house on a loan. Though buying a house is considered a good investment and there was a boom for the real estate investing sector, there is a drastic change in the mortgage loan rates in Australia. This boom in the real estate sector has led the banks and other lenders to decrease their mortgage loans. Therefore, this is not less than a golden opportunity for the people of Australia.

If we take an average, the majority of the lenders used to charge approximately 3.3- 6.79% interest on mortgage loans or home loans annually. But the current situation of the real estate market has forced them to decrease this rate to approximately 2.63-5.42% annually. Additionally, these rates are at their lowest levels in the past 2-3 decades.

How Hard Does It Affected Property Sales?

The properties listings in Australia in 2021 hit their low-level mark. Homeowners believe that they must wait for the right time to sell their properties. That’s not surprising, given how concerned many sellers are about their ability to sell their house during the difficult period of on-again, off-again lockdowns.

Of course, anyone actively looking for a home or an investment property this year have noticed a scarcity of A-grade homes and investment-grade properties on the market. One of the reasons property values soared this year was due to a skewed supply and demand ratio.

The CoreLogic report found that the units were among the top 10 most expensive sales in Australia. The top 10 Australian property market sales for the year totaled $407 million and ranged from $31,250,000 to $60 million. After an estimated sale of 614,635 as per CoreLogic reports, Sales volume also reached the highest level. This change in real estate investment has been seen in nearly 18 years during 2021.

Conclusion: It Is Worthy Investing In House In Australia 2021

Investing in a house has never been a bad call. For decades, we have just witnessed a slight or drastic surge in the rates of the properties. Well, the covid pandemic has hit the financial stability of a lot of people in Australia. Though it would be a very difficult call for them to make, if your budget allows you to buy a property in Australia, you must grab the opportunity.