The value gap between capital cities is widening

Spurred on by a rise in national dwelling values after a long period of decline, property values around Australia are now up 4.7% since finding a floor in June through to the end of November.

While Sydney has long been the most expensive capital city housing market, there was a short period in 2006 which was related to the mining boom where Perth values shot up to be the highest of any capital; a very different scenario to what we are now seeing where Perth is now the cheapest capital city based on median house values.

To put this into perspective, the gap between the most expensive city (Sydney $956,249) and cheapest house market (Perth $453,393) currently has a difference in median value of over half a million dollars or 111% more expensive. Ten years ago, the value differential between these two cities was $53,962 (11%), highlighting the changing conditions and diversity of these two markets overtime.

An affordable entry point to the housing market is less meaningful when job opportunities are scarce. The past five years has seen almost three quarters of Australian jobs created in New South Wales or Victoria. Recently this trend has started to shift as jobs growth slows across the two largest states and picks up across some of the smaller states.

*source Property Update

Posted in Buy, Latest news, Sell on 9th December, 2019