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A decade ago, 71 per cent of houses and 75.8 per cent of units in Australia’s major capital cities sold for under $400,000. Similarly, a decade ago, only a small fraction, 3.4 per cent of houses, and 1.9 per cent of units located in the major capital cities sold for more than $1 million dollars.
In mid-2016, just 10 years later, a significant percentage of suburbs joined the $1 million dollar club, with 12.4 per cent of houses, and 4.6 per cent of units exceeded the magic $1 million dollar range.
What’s interesting now is that a house with a $1 million dollar price tag has become a very common occurrence across many of Australia’s suburbs located in the major capital cities. The new benchmark today, it seems, is to break the $2 million dollar mark, and join the elusive $2 Million-Plus Club.
So, let’s just stop for a second and reflect back on the implications of the $1 and $2 million dollar club. I don’t know about you but to me it’s just incredible that it’s now a common occurrence for people to spend $1 million or $2 million dollars for a house in a good suburb.
For those readers old enough, just think back 10 years ago when the median price in Melbourne was $370,000 or 20 years ago when the typical house cost $150,000 to even consider back then anyone buying a house for $1 million or $2 million dollar price tag?
It was something you heard millionaires doing in Mossman or Toorak, but definitely out of reach for the average Australian family. And that’s for houses…if you consider now that there are penthouses (apartments) in Sydney and Melbourne selling for $10 million to $15 million it’s just incredible!
Whilst the top suburbs in Australia continue to accelerate in prices, for the first time a significant percentage of the population are being permanently squeezed out of the housing market, according to recent survey results from REST Industry Super show.
They survey of 1000 Millennials found more than half of 18 to 34-year-olds blamed rapidly rising house prices and the increased cost of living for pricing them out of home ownership. REST Industry Super Chief Operating Officer, Andrew Howard, said research found the majority of respondents believed home ownership was just as important to them as it was for their parents, “so they’re obviously feeling quite disheartened about the current property market”.
This short video gives them some hope by highlighting three valid investment options in Melbourne under $500,000.