Latest news with #AmeliaHodge
Daily Mail
27-05-2025
- Business
- Daily Mail
Revealed: The insane salary Aussies now need to buy a home in Sydney
Sydneysiders hoping to buy a home have been given more bad news with a new report stating the city's median house price is now worth 13 times the average salary. The Australian Property Institute's (API) Valuation Report, released on Tuesday, painted a grim outlook for those seeking to step onto the property ladder in the Harbour City. Fifty years ago, a median priced home in Australia's most populated city cost just 4.2 times the average worker's salary. In 1995, it had only risen to 5.8 times their income. But by 2015, that same median priced home was worth 11.1 times an average income for Sydneysiders. The average Australian salary last year was just short of $103,000, according to the Australian Bureau of Statistics, while a median home price is nearly $1.34million. The new data equates to a median home costing more than 13 times the average income. API chief executive Amelia Hodge said housing affordability is at a 50-year low. 'Australia has one of the fastest growing populations in the OECD, fuelled by record immigration, yet housing for younger Australians is more unaffordable than ever,' she said. Experts believe high levels of inflation and a housing shortage are to blame. Meanwhile, in Melbourne, the median house price was 8.4 times the average salary, while in Canberra, this figure was at 9.0. Darwin had the most affordable houses, according to the report, with prices at 5.8 times the average salary. 'Despite the vast bulk of immigrants surging into Sydney and Melbourne, the results suggest the impact of migration on Australian domestic property prices may not be as pronounced as other unseen factors,' Ms Hodge said. Between 2005 and 2024, house prices rose by a whopping 171 per cent in Sydney, with other capital cities seeing similar increases. Melbourne's house prices rose by 169 per cent in the two decades, while Adelaide saw an increase of 175 per cent. Meanwhile, in the Sunshine State, median homes in Brisbane were worth 2.9 times the average income in 1975. Now they're worth roughly 8.3 times the average salary.
9 News
27-05-2025
- Business
- 9 News
Jump in value of farmland beats all other Australian property: report
Your web browser is no longer supported. To improve your experience update it here Sydney and Melbourne blue-chip suburbs have been beaten when it comes to increases in land values during the past two decades, new research has found. The Australian Property Institute's (API) inaugural valuation report shows that over the past 20 years, farmland rose in value more than any other type of property. The value of agricultural land has jumped by 256 per cent since 2005, compared with 154 per cent for housing during the period. Australian farmland has recorded the biggest increase in property value during the past 20 years, a new study found. (AP) The value of industrial property, such as warehouses and factories, increased by 164 per cent, while the value of commercial property, including shops and offices, recorded a 143 per cent rise. The big gain for farmland was powered by high commodity prices, favourable weather conditions and, until recently, low interest rates. The report found the biggest hike was in Victoria's Wimmera region, where land values have bounded by 802 per cent, driven by rising demand for renewable energy. Grain and sheep farms have historically been the backbone of the area's economy. API chief executive Amelia Hodge said farmland bettering capital city property values was a shock for some people. But she also warned the push for renewable energy put pressure on land in rural areas. "Our economy is being transformed by the structural shift from fossil fuels to renewables, which will benefit the planet, but in some areas threatens the ongoing viability of scarce agricultural land, to be replaced by vast new solar energy farms." agriculture Farming Australia finance CONTACT US Auto news: Google Gemini AI assistant coming to new cars in 2025.
Yahoo
26-05-2025
- Business
- Yahoo
Jaw-dropping income you now need to buy an Aussie home compared to 50 years ago
New figures have revealed how much of your income you would need to buy a home in Australia, and it has shot up dramatically over the last five decades. While older Australians might tell you they had to dig deep to get the keys to their castle, the Australian Property Institute's (API) data reveals it's never been harder than right now to get on the property ladder. Nationally, you would need 8.1 times the average annual income (which is $102,742) to afford an average home. Back in 1975, you only needed 3.4 times the average salary. 'Looking at the data, housing affordability is now at a 50-year low, driven by incomes failing to grow above inflation and a corresponding shortage of new homes being built,' API CEO Amelia Hodge said. 19 Aussie lenders called out for not passing on interest rate cut as $76 million issue exposed $3 million superannuation tax change sparks property warning as 'panic' selling begins ATO warning ahead of $1,288 cost-of-living cash boost: 'Shooting yourself in the foot' Unsurprisingly, Sydney topped the list for how much money you'd need if you wanted to jump onto the property ladder. According to the Australian Property Institute Valuation Report, you'd need 13 times the average salary to buy a home in the harbour city. What's wild is that 50 years ago, you only needed 4.2 times the average salary to get a slice of the Australian just 20 years, the price of the average Sydney home has shot up 171 per cent, and it's a similar story right across the country. Melbourne's salary-to-home value ratio went from 3.5 in 1975 to 8.4 in 2024. Brisbane went from 2.9 to just above the national average at 8.3. The other capitals have experienced rapid growth in just the last two decades, with Canberra's average home price shooting up 148 per cent, Hobart's is up 172 per cent, Perth's is up 123 per cent, Adelaide's is up 175 per cent, and Darwin's is up 102 per cent. This widening income-to-home price ratio has been driven both by hot demand in the property market as well as stagnating wages due to low productivity and economic growth. According to Ray White, Aussie house prices jumped by $46,625 from $871,671 to $918,296 in the 12 months to April 2025. Conversely, the wage price index in March 2024 was 4 per cent. Fast-forward to the March quarter this year and it's fallen to 3.4 per cent. Understandably, many have all but given up hope of owning their own home. A poll of more than 2,600 Yahoo Finance readers found 63 per cent feel property ownership will never be within reach for them. While there are several state and federal government initiatives aimed at getting first-home buyers into the market, they could soon be even more priced out of their desired suburbs. The Reserve Bank of Australia (RBA) recently cut interest rates for a second time this year. The RBA is tipped to potentially deliver several more reductions to the official cash rate in the second half of 2025. It's welcome news for millions of people who already own a home, however, many fear it will likely put upward pressure on home prices. This means that Aussies who might have been saving for years to get enough for a deposit could be priced out in the coming months. Melbourne buyer's agent Emily Wallace told Yahoo Finance that people were already trying to jump into the market to avoid paying tens of thousands of dollars more in a few months. "People who have financial literacy understand it and they're acting," she said. "By the time that reaches mass media, that might be two or three months down the track, but actually the best time is probably right now." Ray White chief economist Nerida Conisbee warned that price growth will be "particularly pronounced" in cities that have already shown strong growth like Perth, Adelaide and Brisbane. "However, markets that are currently much slower, such as Sydney and Melbourne have historically been far more sensitive to rate cuts. The cuts today are likely to boost these markets," she added. Well, it's hard to say because that answer depends on a lot of factors like future interest rate cuts, whether supply is boosted, and how the market responds to certain economic elements. Domain data revealed that if the official cash rate fell by 1.5 per cent by early 2026, the median house price for the combined capitals could jump by 12 per cent to $1.32 million. That translates to around $141,000 extra as a result of the falling cash rate, which means you'd need to find an extra $14,100 for your 10 per cent deposit or $28,200 for a 20 per cent deposit. The current cash rate is currently at 3.85 per cent, and started the year at 4.35 per cent. Some experts have forecasted it to go as low as 2.60 per cent by February. How much would that mean for your city? If this happens, median house prices are expected to reach: Sydney: $1.9 million Melbourne: $1.16 million Brisbane: $1.14 million Adelaide: $1.12 million Canberra: $1.17 million Perth: $1.02 million Hobart: $795,286 Darwin: $738,272Error while retrieving data Sign in to access your portfolio Error while retrieving data
ABC News
26-05-2025
- Business
- ABC News
Increase in value of agricultural land exceeds all other property types, report finds
Farmland has increased in value more than any other Australian property type over the last two decades, a report has found. The Australian Property Institute's (API) inaugural valuation report shows the value of agricultural land has increased by 256 per cent since 2005, compared to 154 per cent for housing over the same period. The strongest growth was recorded in western Victoria's Wimmera region, where land values have skyrocketed by more than 800 per cent amid demand from the renewable energy, grain and grazing sectors, according to the report. API chief executive Amelia Hodge said it was surprising that some that farmland had outperformed metropolitan property categories. "It's really interesting that the Wimmera region has come out the winner over 20 years," she said. "Agricultural land has come out nationally as the best performing category." Australia's smaller capital cities outpaced Sydney and Melbourne in housing value growth over the last two decades. In Adelaide prices rose by 175 per cent since 2005 and by 172 per cent in Hobart. Sydney residential property prices grew by an average of 171 per cent during that time. Prices in Brisbane and Melbourne increased by 169 per cent. Inflation rose by 67 per cent over the same period. The API report drew its comparisons using data from the Australian Bureau of Statistics, the Australian Bureau of Agricultural and Resource Economics, Suburbtrends and Colliers Edge. The Gold Coast was the top performing regional residential market and six other Queensland regional cities were in the top 10. Wimmera-based real estate agent Nick McIntyre said it used to be hard to sell farmland in the region. "You look back 20 years and we were in the middle of the Millennium Drought and prices were going nowhere," he said. Mr McIntyre said a "perfect storm" of low interest rates, strong commodity prices and favourable seasons had driven prices up. "We saw property prices double and double again – and in some instances double again – from about $1,000 to $2,000 to $4,000 to even $8,000 an acre," he said. The API report noted the rise in the value of farmland in the Wimmera was also driven by the conversion of land into solar farms. But Mr McIntyre disagreed with that assessment and attributed the growth to production capacity. "Seasons are very reliable and even in the driest of years they can almost always get some sort of crop, whereas that's not always the case in other areas," he said. Minyip farmer Ryan Milgate said the swing towards grain growing and away from livestock production had boosted prices. "The change in our farming systems and our ability to successfully grow crops like lentils, I think, has underpinned why the Wimmera is such a sought-after cropping area," he said. But Mr Milgate said high land values had put a lot of pressure on those who had expanded and he expected prices to flatten out. "The capital value of the land doesn't reflect the capacity of the land to produce, so one of the real issues is there has been a real squeeze in return on investment," he said. "It's important to note the vast majority of farmers are here for the long-term and the capital value of our land is just a number on a piece of paper.
