The latest property market figures show that in most Australian capitals, both values and rents are heading north. Canberra and Sydney share the top spot for rent on two-bedroom dwellings, with a median weekly rent of $330.
The institute say rents have also increased significantly across the country over the year to June, 2007, responding to historically low vacancy rates. The current weighted average median house price Australia-wide is $431,199 - a rise of almost 3 per cent since the March quarter, but this overall figure belies significant variations between capitals.
According to leading research group Australian Property Monitors, the Australian residential property market is set to again surge over the next decade. The group has recently revised its forecast for house prices over the coming year, changing their prediction from "stable" to a rise of 5%. While rising prices are good news for existing home owners, many economists believe that future growth will soon reach a ceiling, with average Australians simply unable to afford to service a mortgage. Figures produced by the Labor party ahead of their upcoming housing affordability summit show the annual income needed to buy a median-priced home in Sydney has risen from $62,800 in 1996 to $145,412 this year. While Prime Minister Howard has blamed a lack of land releases for the affordability problem, the NSW Treasury has defended its position, saying there is currently enough land available to accommodate 33,000 new homes in the state.
