The Australian property market’s last decade in review
Over the last ten years the Australian property market has recorded an annualised rate of growth just below 10% each year. However, the results vary greatly between each city.
Hobart has actually seen the greatest value growth over the last ten years with dwelling values increasing on average by 12.8% annually (to November 2009). It’s no real coincidence given that Hobart prices came from a very low base. Despite this, Hobart still provides the most affordable capital city housing. What is probably most interesting is the performance of the three largest cities (population wise). Sydney prices have dramatically underperformed the national average with average annual growth in dwelling values of just 6.3%. Melbourne has only just outperformed the national average seeing average annual growth of 9.7% whilst Brisbane has recorded growth of 11.0% p.a. The national figure is weighted by population and property type so given this it is clearly influenced by the larger population centre's such as Sydney and Melbourne.
Given what has occurred over the last ten years it will be very interesting to see what the next ten years holds. Undoubtedly property prices are expensive in most capital cities and the provision of affordable housing must be imperative. However, it appears that to-date Governments are unwilling or unable to provide affordable land supply with the necessary infrastructure. As population growth looks set to remain at high levels and we continue to fail to build enough dwellings to cater for demand, upwards price pressures on property is likely to persist.
Source: RP Data