Australia Faces Population Surge Challenge: Annual Housing Costs Jump 9%, Pressure on Housing Intensifies — Sydney Auction Clearance Rates At 71%

Week’s Key Focus

Australia is currently grappling with a rapid population increase and a tightening housing market, drawing widespread attention. Recent data reveals that by the end of September 2023, Australia’s population surged by 659,800, reaching 26.8 million, surpassing previous forecasts significantly. This growth, largely fueled by a substantial influx of overseas immigrants, accounted for 83% of the annual population increase, equating to 548,800 people, primarily due to temporary visas for work or study purposes. This considerable rate of growth has exerted additional pressure on the housing market.

Despite the pressures of rising interest rates and other cost-of-living challenges, Australia’s housing prices have remained robust, setting a new national record with an average price of $765,762. This scenario is primarily due to the limited housing supply amidst strong demand. Analysis by CoreLogic indicates that nearly 90% of the market experienced price increases, and the rental market has also seen significant rent hikes, with 94.2% of markets recording annual rent increases.

The rapid pace of Australia’s population growth and the resulting strain on the housing market have caught the attention of policymakers. A 2007 intergenerational report had predicted the population would not reach 26.8 million until 2034-35, yet this milestone was achieved in 2023, highlighting a systematic underestimation that has intensified the challenge of providing adequate housing. This necessitates more robust government action in land and population investment to address the issue. The continuous rise in housing values and rents further underscores the urgent market demand for more housing.

The significant impact of Australia’s swift population growth, especially due to a sharp increase in overseas migration, has led to continuous rises in housing prices and rents. This trend emphasizes the importance of enhancing housing supply and management policies to meet the demand for housing effectively.

Auction Results Last Week

  • Sydney: 1136 properties were auctioned, with 734 auction results reported. Of these, 520 properties were sold, achieving a clearance rate of 71%. The total auction value was AUD 631,274,770, with a median house price of AUD 1,700,000.
  • Melbourne: 1516 properties went to auction, with 1125 auction results reported. Out of these, 697 properties were sold, resulting in a clearance rate of 62%. The total auction value was AUD 584,667,933, with a median house price of AUD 1,050,000.

Top 5 Auction Prices in Sydney Last Week: Houses

▼TOP 1. AUD  $6,360,000

Address: 161 Bobbin Head Rd, Turramurra NSW 2074

Land Size:923 sqm

House | 5 Bed | 5 Bath | 3 Parking 

▼TOP 2. AUD  $6,100,000

Address: 74 Highfield Rd, Lindfield NSW 2070

Land Size:  936 sqm

House | 5 Bed | 5 Bath | 2 Parking

▼TOP 3. AUD  $6,000,000

Address: 64 Boyce St, Glebe NSW 2037

Land Size: 625 sqm

House | 5 Bed | 4 Bath | 3 Parking

▼TOP 4. AUD  $5,800,000

Address:215 High St, Willoughby NSW 2068

Land Size: 546 sqm

House | 6 Bed | 5 Bath | 2 Parking

▼TOP 5. AUD  $5,760,000

Address:46 Alleyne Av, North Narrabeen NSW 2101

Land Size: 695 sqm

House | 6 Bed | 3 Bath | 3 Parking

Top 5 Auction Prices in Sydney Last Week: Units

▼TOP 1. AUD   $4,250,000

Address: 66 Ormond St, Paddington NSW 2021

Terrace | 4  Bed |  2 Bath | – parking

▼TOP 2. AUD   $3,100,000

Address: 8A Fisher Av, Ryde NSW 2112

Semi |  5 Bed |  5 Bath | 3 Parking

▼TOP 3. AUD   $2,905,000

Address: 4G Wolseley Gr, Zetland NSW 2017

Terrace| 4 Bed | 3  Bath  | 2 Parking

▼TOP 4. AUD   $2,903,000

Address:1001/417 Bourke St, Surry Hills NSW 2010

Unit | 2 Bed |  2 Bath  | 2 Parking

▼TOP 5. AUD   $2,800,000

Address: 7/252 Maroubra Rd, Maroubra NSW 2035

Unit |  3 Bed | 2 Bath   | 2 Parking

Leave a Reply

Your email address will not be published. Required fields are marked *