Housing Affordability Better Than Last Year
Housing is more affordable now then it was a year ago, according to a joint study by the Real Estate Institute of Australia (REIA) and Bendigo Bank.
Despite housing prices rising in the three months to June, this study shows that the current economic climate has made housing more affordable than it once was. The average house price is down by 3.1 per cent from this time last year and units or apartments are 0.4 per cent down on what they were in 2011.
REI president Pamela Bennett said there are promising signs if you know where to put your money.
“The news is good for investors with improving yields, thanks to tight vacancy factors and the impact on rental returns coupled with lower borrowing costs.
“Every capital city with the exception of Adelaide, Hobart and Canberra experienced strong demand for rental accommodation during the June quarter. National vacancy rates remain low,” she said.
Statistics on rents in places like Darwin show a moderate increase from this time last year, highlighting the benefits of investing in property.
Meanwhile, data from the Australian Bureau of Statistics (ABS) shows that building construction grew modestly in the June quarter, up by 4.6 per cent.
The number of projects that builders broke ground on was 34,116.
Lyndsey Douglas, Ray White