A real estate market that has been on a tear in recent years has finally hit a wall as investors and sellers alike look to cash in.
Key points:Rents in Australia have been soaring for years, but now the rate is soaring tooRents are soaring again but prices are not rising as fast as in the pastThe number of houses sold in Australia hit a record of more than 17,000 in August, and that figure is set to rise further, the Bureau of Statistics says.
The figures, which were released today, show there were 2.5 million dwellings sold in the July to September period, up from 1.9 million a year earlier.
Inflation-adjusted rental prices in Sydney and Melbourne rose 4.3 per cent and 4.6 per cent, respectively, and the average rent for a house sold in Sydney rose by 4.2 per cent to $2,857.
That’s the biggest increase since December 2013, and is up 5 per cent on last year.
The average price of a house in Melbourne, Sydney and Perth is now $1,800 higher than the median price, while the median rent in Melbourne and Sydney is up 4 per cent.
In Sydney, the average price for a detached house is now up 12 per cent over the past year to $1.924 million, while in Perth it’s up 6 per cent for the same period.
But there was a slight dip in the number of dwellings sold for the first time, down 1.4 per cent from the previous month.
Rent increases across the country have been surging since the end of the financial crisis, but prices in some suburbs are still falling, according to the Bureau.
In Western Sydney, for example, the median rental price for an apartment fell 7.3 percent over the same month to $4,700.
But the number that sold out of the market this month fell 2.3 percentage points to 1,904 units.
In Melbourne, rents are still rising at a faster rate than they have in years.
The median rent for an Apartment in the Greater Melbourne area is now set to increase by 8.1 per cent in the year to June 2019 to $3,750.
The Bureau of Economics figures show that the average annual rent in Sydney is now more than five times higher than its national average, with the median for a Sydney house rising by nearly 10 per cent since December last year to a record $2.943 million.
In Greater Melbourne, the price of detached homes is set for a sharp increase, with a median price of $3.7 million, up by almost 10 per per cent year-on-year.