One of the key factors that influence the property market is supply and demand. In recent years, the demand for housing has increased, and the supply has not kept up. This has resulted in a surge in property prices across the country, especially in major cities such as Sydney and Melbourne. According to recent data, the median property price in Sydney is around $1.4 million, while in Melbourne, it is around $1 million.
The high median property prices in these cities are due to a combination of factors. Firstly, the population in these cities has been steadily increasing, which has led to a surge in demand for housing. Secondly, the supply of new housing has not kept up with the demand, as there are constraints on land availability, zoning regulations, and construction costs. This has resulted in a shortage of housing, which has driven up prices.
While Sydney and Melbourne are the most expensive cities in Australia in terms of median property prices, other cities such as Brisbane, Adelaide, and Perth also have relatively high median prices. According to recent data, the median property price in Brisbane is around $620,000, while in Adelaide, it is around $540,000, and in Perth, it is around $520,000.
Amid the pandemic, our property investment advisor saw a notable shift for Australians relocating from metropolitan areas to regional locales. With remote work becoming more prevalent, individuals can avoid daily commutes and opt for affordable, low-density regions. Consequently, suburbs neighboring major cities have gained traction, causing a surge in real estate demand and driving up home prices. Because of the need for space, more people wanted to live in homes rather than apartments which exacerbated the property price difference between houses and apartments even more.