Posted June 01, 2018 06:30:08 If you want to buy a home in Australia, the cheapest city to do it in is Melbourne, according to real estate agent The Trusted Listings (TTL).
The Sydney property market is expected to continue to be the biggest seller this year, with the average asking price for a property at $9.5 million.
TTL’s latest rankings, based on market prices from July 1 to July 16, 2017, are the most recent to include prices for all Australian cities.
Read more: TTL found Melbourne is the second cheapest city in Australia to buy and sell, while Sydney is the third cheapest.
“The key is finding a market in which to buy or sell a home, which means Sydney and Melbourne are both the best places to buy,” said TTL chief executive Michael O’Connor.
“These cities offer low mortgage rates and the right mix of affordability, amenities and proximity to other major urban centres.”
Cities with lower mortgage rates TTL also found the biggest cost saving in Melbourne and Sydney came from the availability of low-interest loans.
“Low-interest rates are often the best choice for people who want to save on the deposit for their first home purchase,” said Mr O’ Connor.
“We know this because we have seen it work for people in Melbourne.”
TTL said its Melbourne ratings are based on average asking prices from June 1 to June 16, 2018.
This means that while the average price for the city has dropped slightly from last year, the median asking price still remains at $7.4 million.
“This means that Melbourne is still one of the most affordable cities in Australia and the lowest cost to buy, with a median price of $9,829, according the TL data,” Mr O’thson said.
“It also means that, when it comes to mortgage rates, you can get a mortgage with a good rate for a reasonable amount of money, and for a good return on your investment.”
The median price for Sydney is still the fourth cheapest in the country, but it’s dropping in value as house prices continue to rise.
The average asking house price is $1.9 million, while the median price is up to $2.1 million.
The median prices of Sydney and Canberra are now the highest in the nation, but are still well below the average.
“There are many factors that can cause the value of a property to increase or decrease,” Mr Tonton said.
Melbourne’s median house price has dropped from $1 million in the spring to $943,000 in the last three months.
Sydney’s median price dropped from its peak in May 2016 to $1,849,000 last year.
The Trulia report found that Sydney is in the top five cheapest cities in the world, but is still falling.
“While Sydney is no longer a great place to buy as a home owner, it is still a good place to rent,” Mr Davenport said.
Tullys research also found that the average rent in Sydney has decreased from $2,500 to $3,500 per month, but that the price of a new home is still significantly higher.
“You’re paying $2 a week for a flat that has a balcony,” Mr Lomax said.
The Melbourne property market may continue to remain the biggest selling point in the city, however, as the number of apartments and condos has surged.
While Melbourne’s rental market is still very strong, Mr Oatson said there are plenty of places to find affordable housing.
“When you look at a property’s market, it’s a combination of affordability and affordability coupled with proximity,” he said.
What to look out for The average house price in Melbourne is now $923,000, down from $947,000 a year ago.
Melbourne has the fourth lowest number of rental apartments per capita at 1,936.
“For a city of 100,000 people, the vacancy rate in the CBD is now just 2 per cent, while it’s about 10 per cent in the outer suburbs,” Mr Coates said.
Mr Daverport said Melbourne’s apartment vacancy rate is one of Australia’s lowest.
“Even though the vacancy rates in Melbourne are lower than other Australian cities, it still falls below other cities like Sydney,” he explained.
“So, you’re not only getting a very low rental price but also being in a city where you can live comfortably.”
While the Sydney property boom continues, Melbourne’s growth in new apartment developments is slowing.
“In recent years, there’s been an increase in new development, which is good for a city like Melbourne, but we’ve also seen an increase over the past three years of the number and quality of existing apartment buildings,” Mr Teague said.
But, there are still plenty of vacant properties to be found.
“New developments are not going to fill the market for many years to come,” Mr Risby said.