Will Property Prices Double in the Next Few Years?

Prices are surging up across Australia. The figures below are indicating that most capital cities, year to date, are up by an average of 3.6% with forecasts suggesting double-digit growth this year. Regional areas including regional Queensland are reporting double growth of that of their capital cities.

In Palmwoods and the surrounding suburbs, I’ve seen property sales this year already up 10% or more from what they could have achieved 12 months ago. The current median house price as indicated by REA in Palmwoods is $590,000. An example, for a 3 bedroom home based on recent sales Domain is suggesting a median house price of $488,000 however that’s over a 12-month period. More recent sales of 3-bedroom home are selling upwards of $500,000. The same is true for 4-bedroom homes with a median sale price of $600,000 over the last 12 months yet recent properties sales well into the $600,000s and for beautifully presented homes selling well into the $700,000. In 2012 the median house price for Palmwoods was $413,500 which is approximately a 42% increase over an 8-year period.

If we zoom out and look at the median house price for the Sunshine Coast back in 2000 it was roughly $170,000. In 2004/2005 this figure was more than double, with a median price of $392,500. Is it possible we could see house prices doubling over the next few years?

Capital City Year to date figures are:

  • +4.7% in Sydney
  • +3.9% in Perth
  • +3.8% in Brisbane
  • +3.4% in Melbourne
  • +2.2% in Adelaide

In Queensland this week there were 241 properties scheduled for auction. Based on 92 reported sales there was a 76% clearance rate with 69 sold under the hammer and 20 passed in. For non-auction sales in Queensland, there have been 1348 private sales reported on realestate.com.au

This is a strong indication that we are in the middle of a property market boom with buyer demand being dominated by owner-occupiers and specifically first home buyers. Fewer investors are purchasing property at the moment. According to Michael Yardney’s report, less than a quarter of loans over the last 6 months were from investors.

 

Here are the auction clearance rates for this week state by state.

– Queensland – 76%

– New South Wales – 92%

– Victoria – 85%

– South Australia – 92%

– Western Australia – 67%

– Northern Territory – 75%

– ACT – 96%

Tasmania – no data

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