Australia is the sixth largest country in the world & the smallest continent and is one of the most expensive housing markets in the world. It is currently the most expensive housing market in the country. Sydney has an average house price of AU$633,200 (US$574,667), about 17.4% above the national average house price of AU$539,400 (US$489,538).
It is believed that the Australian housing is considerably overvalued. Year 2013 was a year of the strongest performance in Australian housing market, over the past four years. House prices in the country's eight major cities saw growth of 9.48% during 2013, based on figures released by the Australian Bureau of Statistics (ABS).
Presently Sydney continues to lead the property market in Australia. In the quarter ending June 2014, the average house price rose by 3.1% while the average unit price witnessed a growth of 3.9%.
As mentioned by Rising Price Research Director Tim Lawless, Sydney has topped the charts in terms of Capital gains. Values increased almost 25% in Sydney over this period. Rising prices make affordability a concern that further might affect the capital gains. Tim believes that the though the capital gains will continue to happen in Sydney the rate of gain will reduce. Overall, New South Wales is attracting investors with its steady growth & good yield.
The next attractive market is the Newcastle market. Newcastle is the sixth largest city in Australia. With the economy performing strongly over key sectors, the region is rapidly expanding. The city has a rich history that is evident in the Victorian Terrace houses and rare Weatherboard Terrace houses.
The average sale price in Newcastle displayed a growth of 8.4% in 2014. Lake Macquarie saw a 7.2% growth in prices whereas Cessnock & Maitland witnessed a growth of 6.2% & 4.1 % respectively.
Newcastle has a very strong economy and is performing well in many sectors. It provides a residence to more than 650,000 people and is expanding rapidly. This has resulted in better opportunities for investment and business. For instance, the government’s newly adopted lower hunter strategy has created over 30,000 dwellings catering to 160,000 new residents.
Many reports have marked the magnificent growth in the sales. Furthermore, the consistent run of sales has lifted the city’s actual price from $408,000 to $494,500 in a span of one year.
The governmental plans for the rejuvenation of Newcastle are also playing a major role in the development of the city’s property and investment market. Some of the most significant plans include:
1. $94 million in Newcastle courthouse development
2. $400 million in redevelopment of Hunter Street Mall
3. $80 million expansion of Newcastle’s airport
Many investors have observed the plans of transforming the CBD into a dynamic 21st century regional city. They are showing full faith and trust in government and the developmental industry which are working on the infrastructure and major projects. This has provoked investment in these sectors.
The new apartment projects are driven by the urban renewal plans. The market in Newcastle is very active, prices are trending upwards at a very fast pace.
Islington, which is a suburb of Newcastle, has also started various developmental projects. It has become an affordable alternative to the very popular, neighboring suburb of Hamilton. Islington is situated just 3.4kms away from the city’s CBD and is on one of its biggest arterial roads. Newcastle and central coast railway lines surround the south eastern border of this suburb. On the adjacent side, it has the Newcastle campus of the hunter institute of technology.
The major cause of this suburb’s popularity is its proximity to the CBD and beaches, along with its wide range of facilities and good public transport. When we compare it to Sydney, its size is only a fraction of the large city.
Character Cottage style houses are widely seen in this suburb. These types of dwellings are appealing to families, whereas the young professionals show interest in warehouse apartment developments. The market in Islington has seen a major growth, and it has the potential for more. The most appealing aspect is the affordable prices of the houses. Investors might show interest in the healthy rate of rents that are 6% for units and 5% for the houses.
Another revealed is a northern Sydney suburb, New South Wales with a high buyers demand. The areas in this suburb are mostly owned by young families because of various top schools in the neighborhood. The land is very large and provides a facility of rail link infrastructure.
Queensland has been claimed the most-in-demand suburb. People are drawn to the beautiful character homes and lush greenery.
These were some of the most significant suburbs which are developing steadily and have the potential for more. This development has created a wide variety of employment opportunities for foreigners, who migrate from different parts of the world for such wonderful dwellings. For these migrants, Australia has become a platform of growth. On the other hand, the native Australians do not see their country the same as before.
Manish is founder of Business2sell Group of Websites.
Business2Sell.com.au is one of the leading business and franchise for sale listing websites. We work with our business brokers, commercial agents, franchisors and private sellers to help them connect with the right buyers for their opportunities.
With website now functional in Australia, United States, United Kingdom, Canada, New Zealand and South Africa. We have over 18,000 businesses for sale listed, with over 220 Business Broker and Commercial Agent.
I have over 20 years of experience in Web Industry; I have been involved in websites industry since the early years of 1996-97. In my professional career I may have worked for over 10,000+ websites. My Specialty is to build portals or complex online applications.
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