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Australia prices itself out of the property market

By administrator | February 18, 2007

Australian Immigration News

Australia prices itself out of the property market.

For others dreaming of Australia, it is not just the long haul that has deterred people who live abroad from picking up property in Australia. Despite being a huge country with a small population, prices are steep.

In the latest annual Demographia survey of housing afford ability compiled by the US-based Wendell Cox Consultancy, four Australian state capitals – Sydney, Melbourne, Perth and Hobart – all rated in the worst 25 cities.

On the basis of how many years’ annual average income it would take to buy the average home, Sydney was more expensive than London or New York. In the west coast city of Perth, now the nation’s most expensive city, the price of the average house is eight times the average annual income.

Helping to keep prices high is immigration. The number of new arrivals – currently at around 120,000 per year – outmatched the about 70,000 Australians who left the country permanently last year, many of them moving to cities like London, Hong Kong and New York where salaries are higher but house prices are lower.

The immigrants help jack up prices, particularly because new arrivals congregate in the big cities.

There are close to 250,000 foreigners, mostly Asian and mostly from affluent homes, studying at Australian universities. This raises demand for rental accommodation, which in turn raises house prices in the big cities.

The strength of the Australian economy – 14 consecutive years of growth, the lowest unemployment in 30 years – drives up property values and crimps supply at the same time because investing in the stock market can seem better value than buying property.

Faced with this situation, it’s more important than ever for migrants to do they homework before embarking on their Australian immigration. For help on finding the right place to live, a job, and a guide to the Aussie lifestyle go to www.immigration2australia.com

Extract from teluguportal.

About www.immigration2australia.com

Immigration 2 Australia has been launched as an essential guide to help the increasing number of people thinking of Australian immigration. The web site provides information on Australian Visas, information on finding Australian jobs, somewhere to live and the Australian lifestyle you could expect.

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