Homes for Sale in Australia
Australia ranks as one of the best countries to live in the world by international comparisons of wealth, education, health and quality of life. The sixth-largest country by land mass, its population is comparatively small with most people living around the eastern and south-eastern coastlines.
- Population: 9 million
- Area: 7 million sq km (2.9 million sq miles)
- Major language: English
- Major religion: Christianity
- Life expectancy: 80 years (men), 84 years (women)
- Currency: Australian dollar
RESIDENTIAL PROPERTY FACTS
Price (sq.m): $10,711
Rental Yield: 2.52%
Income Tax: 24.38%
Roundtrip Cost: 12.46%
Cap Gains Tax: 45.00%
Landlord and Tenant Law: Neutral
Where to buy property
New South Wales occupies the southeastern region of Australia. It is the country’s oldest, most populated and most heavily industrialized state. Its largest cities are Sydney, Newcastle and Wollongong.
Northeast Australia is occupied by the state of Queensland, the capital of which is Brisbane. It is the second largest state in area and the third most populous state.
The state of South Australia encompasses the most arid areas of the continent. But more than a fifth of the state’s land area is set aside as reserved land for conservation. And it has a wine region that has produced some of the more well-known Australian wines. Most of the state’s population resides in its capital, Adelaide.
The island state of Tasmania is 240 kilometers south of the main continent to the east, separated by the Bass Strait. Noted for its unspoiled beauty, Tasmania has been called “the Natural State” and “the Island of Inspiration.”
Victoria may be the smallest mainland state, but it is the most densely populated and urbanized. Much of its unprecedented economic growth is attributed to the discovery of gold in the region in 1851, which saw Victoria’s transformation into an important industrial and commercial center. The state accounts for one-fourth of the nation’s gross domestic product.
Perth is the capital and largest city of Western Australia.
The Northern Territory consists of majority of the mainland continent’s central and central northern regions. Its capital city is Darwin. Mining is its major industry, with specific focus on the quarrying of energy producing minerals.
Big real estate developers in Australia have their properties in parts of Sydney, Canberra, Brisbane. Most developers also offer homes for sale in Australia, Queensland.
The Australian Capital Territory is an inland enclave of New South Wales, its terrain consisting mostly of hills, mountains and rugged plains. It is the capital territory of the Commonwealth of Australia and the smallest self-governing internal territory. Its capital is Canberra, which is the capital city of Australia.
Australia is a stable, democratic and culturally diverse nation with a highly skilled workforce and one of the strongest performing economies in the world.
With spectacular landscapes and a rich ancient culture, Australia is a land like no other. It is the earth’s sixth-largest country in land area and is the only nation to govern an entire continent.
Five reasons to invest in Australia
1. 25 years of uninterrupted growth
Australia’s strong, diverse and growing economy adds up to more opportunities.
2. World-class innovation
Australia’s quality research institutions and commitment to innovation make it a proven destination for bringing new ideas to life.
3. World’s fastest growing region
With strong trade links, strategic location and a highly educated, multilingual workforce, Australia is uniquely positioned as a location to do business in the Indo-Pacific.
4. Easy to run a business
A well-regulated and transparent commercial environment makes it easy to establish and operate a business in Australia.
5. Highly skilled workforce
Australia’s multilingual workforce is among the most educated in the world.
Australia’s house price rises accelerating
After five years of strong house price rises, Australia’s housing market is still powering ahead. House prices in the country’s eight major cities rose by 11.1% during the year to end-Q2 2017 (8.98% inflation-adjusted), a sharp acceleration from an annual rise of 4.65% a year earlier, based on figures from the Australian Bureau of Statistics (ABS).
Melbourne saw the biggest increase, with the established house price index surging by 16% (13.8% inflation-adjusted) during the year to Q2 2017, followed by Sydney (14.8%), Hobart (12.2%), Canberra (9%), Adelaide (5.1%), and Brisbane (3.9%). On the other hand, house prices dropped in Darwin (-4.7%) and Perth (-2.8%) over the same period.
Modest rental yields, rising rents
Surprisingly, rental yields in Australia are rising, despite strong house price increases.
In Australia’s eight major cities, rental yields stood at 3.6% in September 2017, up from 3.3% a year earlier, according to CoreLogic RP.
In Q3 2017:
- In Sydney, rental yields stood at 3.1%, up from 3% a year earlier
- Melbourne has the lowest rental yields of 2.9%, unchanged from a year ago
- In Brisbane, yields rose to 4.4%, from 4.2% a year earlier
- In Adelaide, yields rose to 4.2%, from 4% a year earlier
- In Perth, yields rose to 3.9%, from 3.8% in the previous year
- In Hobart, yields fell slightly to 5%, from 5.2% a year earlier
- In Darwin, yields rose to 5.7%, from 5% a year earlier
- In Canberra, yields rose to 4.4%, from 4% a year earlier
Residential rents are rising modestly. During the year to Q3 2017, the nationwide average weekly rent increased 2.9%, according to CoreLogic. Hobart registered the largest annual rise in rental rates of 8.9% in Q3 2017, which was followed by Canberra (5.7%), Melbourne (4.8%), Sydney (4%), and Adelaide (2.2%). In contrast, Perth saw the biggest annual rental growth in Q3 2017, at 3.7%, followed by Darwin (-2.2%) and Brisbane (-0.1%).
Higher taxes might undermine foreign property demand
The surge in house prices in Australia in recent years can be partly attributed to the increasing number of foreign homebuyers in the country, who have accounted for over 20% of property purchases every year.
In 2016, the number of foreign investment applications in the country’s residential real estate market rose by 9% to 40,149 from a year earlier, according to the Foreign Investment Review Board (FIRB). Likewise, the value of residential real estate investment by foreigners surged 19% to AU$72.4 billion (US$55.83 billion) over the same period. Chinese investors topped the list, accounting for about two-thirds of applications.
Victoria was the most popular among foreign investors, accounting for about 44% of all residential purchases by foreigners last year, followed by New South Wales, with 32% share, according to the FIRB.
However, the recent introduction of taxes and the tightening of lending standards imposed by banks can potentially weaken foreign property demand in the coming years.
Rental returns on smaller apartments in Sydney are acceptable
|Last Updated: Dec. 29, 2017|
|Bellevue Hill, NSW 2023, apartments||COST (US$)||YIELD (p.a.)|
|TO BUY||MONTHLY RENT|
|Darling Point, NSW 2027, apartments|
|Double Bay, NSW 2028, apartments|
|Kirribilli, NSW 2061, apartments|
|Paddington, NSW 2021, apartment|
|Point Piper, NSW 2027, apartments|
|Potts Point, NSW 2011, apartments|
|Rose Bay, NSW 2029, apartments|
|Tamarama, NSW 2026, apartments|
|Vaucluse, NSW 2030, apartments|
|All yields are gross – i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Sydney: CBD, Paddington, Darling Point, Double Bay, Kirribilli, Rose Bay, Tamarama, Bellevue Hill, Point Piper, Potts Point, and Vaucluse
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
KEY HOUSE PRICE FACTS
|Square Metre Prices||$10,711|