Real estate market experts have warned that the real estate market is heading for a massive bubble, as the property market is becoming increasingly overvalued.
Key points:The average price of a home in Sydney is $3.8 million and Melbourne is at $3 millionIn terms of average income, the average house in Sydney will be $4.1 million in 2031According to the Australian Bureau of Statistics, median household income in Australia is $60,845 in 2020, compared to $57,847 in 2019.
The median income of a family in Sydney in 2020 was $51,081, while in Melbourne it was $56,813.
While Sydney’s average house price is about $3 billion, Melbourne’s is $5.8 billion.
It is estimated that Australia’s real estate sector will reach a bubble of over $10 billion in the next three years.
“If the housing market continues to be overvalued, and the bubble is so large, the property will go on to become unaffordable for most people, leaving many to live on the streets,” economist Andrew MacKenzie of Macquarie University said.
The problem lies in the way the market is being run.””
The problem is not that property values are going to go up.
The problem lies in the way the market is being run.”
The average house cost in Sydney was $3,716, while Melbourne was at $4,091.
In 2019, the median home price in Sydney and Melbourne was $4 million and $3million, respectively.
The Australian Bureau was quick to point out that the figures are a snapshot, and that it is “not necessarily a reliable measure of the real state of the housing industry”.
It added that there was still time for Sydney and its suburbs to become more affordable, but that it would be “difficult to see how such a change would be implemented without some significant adjustment in the underlying structure”.
“As such, the real rate of return to investors in real estate is unlikely to be sufficient to keep the housing sector in balance for a sustained period,” it said.
But Sydney’s Real Estate Institute is not alone in warning that the property bubble is on the rise.
The Sydney Real Estate Association, which represents the city’s housing industry, has also warned of a housing bubble.
The association has been warning about the housing bubble since last September, when it issued a statement saying that Sydney’s house prices were “at an all-time high” and it would “take some time to bring the economy back”.
The housing market in Sydney peaked at $1.8 trillion in May 2018 and has since plummeted to a record low of $4 billion in March.