Median house prices on the rise

By the resi financial blog team, 06 January 2014

Australian median house prices rise

With median property prices on the rise, now may be a good time to explore your options for fixed interest rates in Australia.

According to the Window Into Housing 2013 report published by the Housing Industry Association (HIA), the median house price in Australia has increased by 105.1 per cent over the ten years between 2002 and 2012.

In 2012, the median property price in Australia was $419,000 for a detached dwelling, compared with $204,329 in 2002.

However, the size of the average Australian property has not increased in line with the overall rise in prices. In 2002, the average size of a new family home was 236 sq m, compared with 245 sq m in 2012 - an increase of just 3.8 per cent.

An even more drastic contrast was recorded between the cost of building a new property and lot size. Since 2002, the median lot size has dropped by 20.4 per cent from 618 sq m to 492 sq m. At the same time, the median cost of a lot has grown by 105.7 per cent - from $93,735 in 2002 to $192,770 in 2012.

There was also a rise in the cost of constructing a new property - increasing to $268,275 from $149,624 back in 2002 (these figures do not include the cost of the lot). Overall, this represents a 79.3 per cent rise over the past decade.

All of these are important figures to consider if you are applying for a loan for a new-build property. You will want to think about all the up-front costs you might face, as well as how much your dwelling is likely to increase in value over time.

Categories: Home Loans