Economy, interest rates point to continued strength for Australian real estate
Two of the world’s strongest residential real estate markets are located in Australia according to new research from global property consultancy firm Knight Frank.
Released last week, Knight Frank’s latest Prime Global Cities Index, which tracked house price growth in the year to June 2016, revealed that both Melbourne and Sydney are among the top 10 growth locations across the globe.
The index shows that in the 12 months to June residential real estate prices in Melbourne grew 11%, making it the fifth strongest market in the world over that period.
Sydney came in just behind Melbourne in sixth position, with prices growing 10.2% in the 12-month period.
$1 million property sales surging
More than one in five house sales across Australia’s combined capital cities sold for at least $1 million over the 12 months to June 2016, new data has shown.
Research from CoreLogic has revealed that the number of property sales with a price tag of at least $1 million has boomed over recent years, with 20.9% of houses sold in the capital cities over the year to June selling for $1 million or more. Almost one in 10 units (8.9%) sold for a price tag of at least $1 million.
Over the past 10 years, the proportion of house sales of at least $1 million has increased almost 4.5 times, with figures from CoreLogic revealing that just 4.7% of houses sold in the year to June 2006 went for at least $1 million.
When compared to twenty years ago, in the year to June 1996, the proportion of houses sold for at least $1 million has increased 42 times. Just 0.5% of homes in the year to June 1996 sold for a minimum of $1 million.
Mortgage Professional Australia