- Posted By David Brown
The most unaffordable cities in the world have been revealed. Hong Kong, China has come in first. Two of Australia's cities have made it into the top 5. With Sydney coming in second, and Melbourne coming fifth. Out of the list of 20 cities that was released, Australia took out 5 spots. With Brisbane coming 17th on the list. According to Domain's House Price Report in December 2021, Sydney's median house price was $1.6M up 6% on the previous quarter, and massive increase of 33.1% from the previous year. Melbourne's median house price was $1.1M with an increase of 5.8% on the previous quarter. On the previous year Melbourne saw an increase of 18.6%, where the median house price still hadn't surpassed the $1M mark. It is sad to see how expense Australian cities are ranked against the rest of the world.
Rising sea levels and coastal erosion are of major concern for Gold Coast property owners. Billions-worth of property could be at severe risk as sea levels rise faster than the global average. Paradise Point is at the top of the nation's list of very high risk suburbs. More than $1.46B - worth of properties are potentially at risk of being affected by storm surges and erosion over the next 30 years. More and more people are concerned with the potential flood risks that their properties may face. Last months floods caused $2.5B - worth of damage across New South Wales and Queensland, and it is yet to be revealed how much damage last week's flood caused.
Property industry groups are expressing their concern with the federal budget that was handed down last week. The budget included three initiatives that increased focus on the demand for housing but experts warn it isn't enough. The First Home Guarantee will have an additional 35,000 places fir first home buyers with a 5% deposit to access Government under-written loans. The Family Home Guarantee will offer an additional 5000 places for single parents with a 2% deposit. The Government will ow also offer a new Regional Home Guarantee will offer 10,000 guarantees for new properties outside of major cities with a 5% deposit. Experts are saying is not even close enough to reach the national demand. When you consider that 17,000 first home buyers loans in Queensland alone in 2022 so far, and 36,000 first home buyer loans in Queensland only last financial year. It is already apparent that 35,000 places nationally won't be near enough. It is also disappointing to see that these grants are restricted to either building or buying a newly built home. It does not acknowledge the entry barriers that almost all first home buyers are facing. Buying new or building is just not affordable or practical option over established housing options.
A waterfront block in Serenity Waters estate, Helensvale has set new records. The 8 Serenity blvd. sold for over $2M at auction. The lost is 1100sqm with a massive 18M water frontage and an established pontoon. Previously the record was held by a lot in River Links estate, the lot is 1257sqm with an impressive 36m water frontage. It sold in November 2021 for $1.85M. All lots aside from 8 Serenity blvd. have been long sold out. It just shows how much people are willing to pay to get their hands on a block of land.
While it looks like Australia's property boom is coming to an end not all cities are slowing down. Adelaide recorded the highest growth in March. Increasing 0.8% and Regional South Australia performing even better increasing over 1%. During 2021 Adelaide prices rose a massive 25%, which is double what Adelaide increased the previous year. It seems that Adelaide is a bit of a late bloomer, and now it's going to have it's moment to shine. It's understandable why buyers are now flocking to Adelaide. People are able to buy properties on large blocks without the large price tag. According to Domain's House Price Report in December 2021, Adelaide's median house price was $731K, which was a 8.6% increase on the previous quarter. Adelaide has typically been known as a boring market but the the price increases over the past 12 months, Adelaide is anything but boring.