Popularity is rising for buying units and townhouses close to the city. Over the past 15 years unit sales have soared by more than 30 per cent. Sydney and Melbourne recorded the greatest proportion of unit sales. For August, just under 43 per cent of all sales in Sydney were for units and almost 34 per cent in Melbourne. RP Data says that buyers are seriously considering higher density housing because entry prices tend to be lower. The research body believes demand for higher density living will continue to grow as our cities expand.
But it seems we’re still a little hesitant to buy property because we think house prices are set to fall further. The Commonwealth Bank/Mortgage and Finance Association of Australia (MFAA) home finance index found the ratio of people planning to buy property in the next year fell to 16.9 per cent in September, from 19.1 per cent in May. That’s down from 21.6 per cent at the start of the year. Almost half of those surveyed expect lower house prices over the next quarter. Victorians were the most pessimistic about falling house prices.
And housing costs for mortgage holders have surged by 42 per cent over the past decade. That’s an increase of $120 a week since the year 2000. Housing costs for renters increased by $78 a week, a rise of 34 per cent. The average renter paid $305 per week. Housing costs include paying rent or a mortgage, as well as rates. Over the past ten years mortgage holders have consistently paid around 18 per cent of income on housing costs, and private renters, about 19 per cent.
But there’s one group not too worried about rising housing costs. Sydney’s Point Piper has won the award for being Australia’s most expensive suburb, according to new research by RP data. The median property price there is $8.25 million. The suburb has only eleven streets and is home to famous residents such as Westfield’s Frank Lowy and politician Malcolm Turnbull. Perth’s Peppermint Grove has lost the top spot it’s held for the past three years, coming in second, with a median property price of $3.79 million. Sydney has claimed six of the top ten spots, Perth three and Melbourne one.
