Posted November 02, 2018 07:47:25 Aussie real estate market has been boosted by record prices for new homes and strong growth in the value of the Australian dollar, according to the head of a leading Australian real estate investment fund.
Key points:The Australian dollar has soared by around 14 per cent since November 19The Australian Real Estate Institute says Australia’s growth has been fuelled by record house pricesThe institute says the average Australian house is worth more than $1 millionMore than one in six Australians are now worth more in real estate than the median family income in the United States, the Australian Realestate Institute said.
A study by the institute shows Australian house prices have increased by more than 14 per one per cent in the past year, reaching a record high in November last year, after a record low in March.
The average house in Australia is now worth $1.7 million, up from $1,547 in 2015, the institute said.
“In the past few months, house prices across Australia have been soaring, and Australia’s economy is doing well,” Andrew Jones, the managing director of the institute’s Australian Real estate Investment Fund, said in a statement.
“That means that more than one out of every five Australians now own their own home, and almost half of all Australians have been able to accumulate a modest income.”
Aussie house prices are on track to be among the world’s fastest rising markets, according the institute.
The institute estimates Australian house values have risen by around 17 per cent over the past two years, up by more then $1 billion from $4.5 billion in 2017.
“Australian house prices now account for about 70 per cent of the world total value of all property in Australia,” it said.
The rising prices have fuelled an expansion in the Australian economy and led to more people moving into the capital cities.
The rise in prices has also prompted a rise in foreign investment in Australian property, which is now the world-leading source of income for most Australians, according for the institute and the Australian Bureau of Statistics.
It is also a factor in the rise in housing affordability for many Australians, the report said.
In recent months, Australian property values have also gone up by over 5 per cent compared to the year before.
“The Australian real value of homes is on track for an incredible increase in value over the next decade and we are on the verge of an extraordinary housing boom,” Jones said.
“If this growth continues, Australian house price growth will outpace the global economy for the next 25 years.”
Mr Jones said the housing boom was “an amazing time to be an Australian”.
“We have a real estate bubble, and now the real estate is exploding and the realty is on the rise, the opportunities are endless,” he said.