Australia now has more than 10 million homes.
Recent data released by the Australian Bureau of Statistics for the end of 2017 show that dwellings rose by 40,400 to 10.003 million, the highest level on record. The total value of those dwellings is $6.9 Trillion representing an average value of $686,700.
In contrast, sales volume has gone the opposite direction with significant declines in transactions in the major capitals, which happen to be the most expensive markets.
Major City Values in Decline
Coupled with the decline in transaction numbers, values in Melbourne, Sydney and Adelaide have also declined in the last quarter.
The value drop was mainly due to decreases in more expensive properties, whilst value growth throughout 2017 had been downward as evidenced in these charts segmented by value range.
The Apartment Oversupply Didn’t Last
Residential building approvals for high-rise apartments is increasing, shirking the forecast of an apartment oversupply.
On the back of continued population growth and the high cost of larger homes, developers are confident that demand for apartments is still prevalent and have continued their to supply them.