Surprise! Capital City House Prices Spiked A Full 10% Over The Past Year

We get it – the never-ending facts and figures tallying the Australian property market’s insane valuations are desensitising at best, but it’s still important to take stock of exactly how boonta the whole situation has become. 

According to the Australian Bureau Of Statistics, house prices in capital cities across this fine land increased an average of 10.2% in the year leading up to March. That charge was lead by – you guessed it – Sydney. The average house price there catapulted upwards by 14.4%.

Melbourne followed up just behind with an increase of 13.4%, and little old Hobart got in on the dream-crushing action with a boost of 11.3%. Homes in the nation’s capital went up 8.9%, with more modest single-digit growth in Adelaide and Brisbane.

The average home price in Perth and Darwin dipped 3.5% and 5.9%. However, in April, the average home price in Perth was still a sizeable $560,000.
Including homes outside of the capital cities, and the data is still pretty troubling. The average house price in New South Wales is around $887,000, and in Victoria it’s closer to $708,000.

Of course, all of this is being brought about by a shortage of homes to actually live in, and the absolutely apocalyptic investment market which is doing a great job of capitalising on that demand.

Oh, all of this is going on at a time when wage growth nationwide is remarkably stagnant. On average, workers experienced just a 1.9% wage increase in the past year.

Grouse, hey?

Source: The Australian.
Photo: Glenn Hunt / Getty.