Real Estate Prices in Australia

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Current situation and prediction future

Real estate prices in Australia are the most likely to remain consistent in 2016 after duration of strong growth, according to Cahill (2016). The reason is that population has increased slowly and less overseas investors come to Australia. For instance, real estate prices have continued to rise in the past decades in cities such as Sydney and Melbourne but now real estate prices fall down. Whether real estate prices in Melbourne and Sydney continue to decrease or rise, will be one of the main factors determining housing prices conditions in 2016. Obviously, the building and apartment construction boom will be effectively absorbed by increasing of population in due course, especially in the places which are located in inner-city suburbs of capital cities, close to transport hubs, amenities and workplaces. These will generate double strong in real estate prices. Real estate prices will grow for the immediate future, and it will hold around these current levels for this time.

Conclusion

To sum up, this research has shown that the population in Australia has increased dramatically. The most significant reason, for dramatic price rises of real estates is high demand from foreign investors and overseas migrants. That is why the Australian government has issued policies to influence purchasing of Australian real estate prices. The higher demand in real estate currently caused regularly increasing real estate prices. Moreover, real estate prices continue to grow slowly, which will keep increasing prices in the future. Cahill (2016) stated once that “The buying power of overseas buyers remains pretty significant.” It is obvious Australian real estate prices increase faster than remain consistent.

Reference List

Stapledon, N. (2013). A History of Housing Prices in Australia 1880-2010. Retrieved from https://www.researchgate.net/publication/228167256_A_History_of_Housing_Prices_in_Australia_1880-2010

Australian population growth is double the world average. (2010). Retrieved from http://www.news.com.au/national/australian-population-has-reached-22-million-abs-statistics-show/story-e6frfkvr-1225845408880

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