How easy will it be for Australians to afford a house in the future?
A recent report by Demographia has revealed the world’s most ‘unaffordable’ housing markets to purchase real estate in, with Australia’s biggest cities falling under the category of ‘severely unaffordable’.
Sydney's real estate market ranked third and Melbourne fourth for most unaffordable compared to 309 housing markets across eight countries in the survey. This outcome has been unsurprising for many property experts, considering Melbourne’s median house price has now surpassed $850,000 and Sydney’s median house price is on track to surpass $1 million.
Rent prices on the East Coast are also at an all time high, making now a great time to put your money toward your own home – and a great time for investment in Melbourne and Sydney.
This information can make hopeful property owners despondent, worrying they will not be able to afford a house in their desired area. With median prices as high as they are, the future of homeownership for young Australian families seems dire. Rental housing is also becoming increasingly competitive in a rental market with ever-growing rent prices, making buying an off the plan apartment helpful for first time homebuyers wanting to afford to live keep living in Australia's capital cities.
Getting together enough money to afford an established home in sought-after areas may become increasingly difficult for young Australians in the future. The median price of an off the plan apartment or townhouses is often significantly lower than pre-existing houses, meaning there are many financial benefits to buying off the plan.
If you're looking to purchase real estate as an investment, or are hoping to owner-occupy, there are a range of off the plan options across Australia that can help you afford a house and beat this housing affordability dilemma.
A city known for its art, culture, food, sports and enhanced livability, Melbourne boasts a number of amazing inner-suburbs. Consistently ranking among the best cities in the world to live in, it is understandable why the Melbourne real estate market is competitive for investment and owner-occupants.
The median house price in highly sought-after South Melbourne for a 2 bedroom home can be as high as $1,061,000 according to recent data. At Domain House, a stunning new collection of generously proportioned apartments in South Melbourne – 2 bedroom, 2 bathroom homes are on offer starting at just $665,000.
Heading through the Melbourne CBD – passing an abundance of culture and café filled laneways, award-winning restaurants and a combination of character filled, heritage buildings and contemporary, architecturally designed high-rises – we arrive in North Melbourne, where the impeccably executed Arden Gardens apartment development resides.
A two bedroom home in North Melbourne will set you back on average $895,000 – so with 2 bedroom, 2 bathroom apartments starting at $635,000, this development offers fantastic affordability. A unique off the plan opportunity – Arden Gardens is fully completed and ready to move in, meaning you can inspect your brand-new home in person.
Sydney is Australia’s most famous city, and its world-renowned landmarks, incredible culture, global business credentials and spectacular natural beauty all contribute to its skyrocketing property prices.
King & Phillip – situated just south of The Rocks and adjacent to the stunning, centrally located Royal Botanic Gardens – offers a great way to break in to the Sydney property market. Housing prices across Sydney are consistently the highest in the country, and an off the plan purchase such as the opportunities available at King & Phillip are a fantastic way to secure a home in the heart of the action.
Just out of the centre is Sydney’s trendy inner-west suburbs, where Park Sydney is ideally located. A thoughtful and forward-thinking collection of residential dwellings, retail precincts and dining options – Park Sydney provides the very best in Sydney living. Situated in increasingly sought-after Erskineville, an affordable 2 bedroom home at Park Sydney sits amongst houses with a median price for a 2 bedroom dwelling of $1,185,000. With prices for 2 bedroom apartments starting for much less money, an off the plan purchase here is a fantastic way to break into the Sydney real estate market.
The recent housing affordability market report need not make young Australians fear for their future in real estate. Affordable, well designed and centrally located homes are available across the country, and our search functionality can help you find them!
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