Based on the figures from Australian Bureau of Statistics (ABS), House prices rose by 6.8% in Australia’s eight major cities in 2014 (3.34% inflation adjusted), after a rise of 9.48% during 2013 (6.47%) inflation-adjusted).
For buyers and investors, it is bad news for them because property prices will continue to rise 2015. Even Sydney, the outperforming state still down because of the property shortages. Is Australia’s housing market severely overvalued? Property prices in Australia are rising but it doesn’t mean overvalued because there are some cities have affordable and reasonable house prices. Home buyers are still looking for an upgrade and making sure the constant housing price growth. Interest rate really affects and influence home buyers and it is showing a climb in property competition. There are so many factors affect the house prices. Some cities dragging the underperforming economy that makes the house prices continue to rise.
According to HIA Senior Economist Shane Grant, “Overall the trend across the capital cities is one of continued improvement in affordability, with the capital city index increasingly by 2.0% in March 2013 quarter. However the cities of Adelaide, Perth and Hobart each saw declines in affordability.”