Latest news with #AngusMoore
News.com.au
4 days ago
- Business
- News.com.au
Buying a home 5 times harder now than in 1980
It is now five times harder for young Queenslanders to buy their first home than it was for their Boomer and Gen-X parents, according to shock new analysis exposing the enduring impact of the nation's longest property boom. Extensive PropTrack analysis over 45 years shows a typical house in Brisbane, which cost just $32,750 in 1980, is now valued at an astounding 420 per cent more in 2025 when adjusted for inflation. That's because the $32,750 spent on a home in 1980 equates to about $174,600 today, but the current median house price has skyrocketed to $910,000. The analysis reveals how much harder it is for the current generation to buy property compared to their parents' era, and has prompted experts to sound the alarm for first home buyers as saving for a deposit becomes more out of reach than ever before. SEE WHAT HOMES REALLY USED TO COST IN YOUR SUBURB PropTrack economist Angust Moore said young people were taking longer to enter the market, relying more on family support, or accessing government incentives to buy with a smaller deposit. 'The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in home ownership rates which have fallen over those years,' Mr Moore said. He said lower interest rates now than the 1980s and early 1990s, when they surged to a high of 17 per cent, had helped drive up property prices in that time due to greater competition and demand. Brisbane's median value surged from $32,750 in December 1980 to $95,000 in December 1990, $152,000 in 2000, $465,000 in 2010, and $910,000 by March 2025. Brisbane units show a slightly less dramatic trend, rising from $38,750 in 1980 to $636,000 today. The trend played out differently across suburbs, with blue-chip as well as entry-level areas included among the most striking examples of real price growth. A typical home in inner-city Hawthorne, priced at $2.125m in 2025, is worth more than ten times its inflation-adjusted 1980 value of $164,500. In Woodridge, homes cost $24,950 45 years ago – equal to about $133,000 today. But the Logan suburb's current median house price is $650,000. The long boom on the back of the Covid-19 pandemic has seen prices rise even more sharply than in the 1990s, when rates plummeted and the real estate market flourished. Newstead locals and engineers Toby Tremain and Georgia Stel, both 25, said they were being pushed out of their preferred suburb by astronomical house prices and currently preferred to rent and live in the city. 'We are both open to owning an apartment, we're not like we must have a house and live in the city,' Mr Tremain said. 'I understand that's not feasible. 'But I think the trade-off is, like living in this area right now for us is really enjoyable.' Rising prices aren't exclusive to the capital, with regional and coastal centres also recording huge real growth. On the Gold Coast, houses in Surfers Paradise were already more expensive than Brisbane in 1980 at $74,500. That figure would be equivalent to $397,200 considering rising living costs, yet a typical home in the Glitter Strip now costs $1.35m. Another Gold Coast example, Ashmore, was closer to Brisbane's median in 1980 at $43,950 — $234,300 in today's dollars. Its current house price is $1.138m. Further north, a house in Aitkenvale, Townsville had a median of $29,625 in December 1980, or $158,000 adjusted. It's now worth more than three times that amount at $514,000. Real Estate Institue of Queensland (REIQ) CEO Antonia Mercorella said price growth was driven by a chronic undersupply of housing. 'Scarcity continues to put upward pressure on prices, particularly impacting first-home buyers who now face a vastly different affordability landscape than previous generations,' Ms Mercorella said. 'If we want to enable sustainable price growth and ensure future generations the same opportunity to own a home, housing policy must be squarely focused on supply. 'Any attempt to improve affordability without significantly increasing housing stock is doomed to fall short.' Byron Bay's Beach Hotel sold for $140m Buyers agent Alex Pope said Baby Boomer and Gen X homeowners were unlocking equity in their properties to help younger family members buy through a guarantor loan. 'First-home buyers are often getting support from mum and dad, and in some ways it's very easy for the older generation who have fared really well from the market to do this,' Mr Pope said. 'As a young person who may have just started in a career, recently moved out of home and paying rent, you're in a really expensive time of life while your income is probably still quite low, so getting the deposit is the hardest part.' Mr Pope advised young buyers to treat their first home as a stepping stone – 'your first home isn't your last, but it does catapult you to the next'. By starting in a duplex, unit, or renovator, young buyers could build equity and eventually move into a more ideal property as their careers and incomes grew, he said. Only a tiny number of suburbs across Greater Brisbane remained at 2000 or even 1990 prices. Russell Island was most frequently highlighted in the data as having current prices comparable to historical values of various other suburbs. Prices in a handful of other outer suburbs including North Booval, Logan Central, Goodna and South Brisbane units were now on par with some values from 20-plus years ago. But the overwhelming majority of homes had now well-surpassed those old benchmarks, cementing a major decline in affordability.
News.com.au
18-05-2025
- Business
- News.com.au
Lowering interest rates could see a spike in home prices
REA Group Senior Economist Angus Moore has weighed in on how the expectation the RBA will cut the cash rate will influence house prices. 'As interest rates come down, that lowers financing cost,' Mr Moore told Sky News Business Editor Ross Greenwood. 'But also, typically speaking, when interest rates comes down, we see home prices go up as well. 'Both those things help make new home builds a bit more viable for developers.'
Daily Telegraph
10-05-2025
- Business
- Daily Telegraph
Home prices in 2030: what houses or units will cost in each suburb
Sydney houses will cost an average of $2.4m by the end of the decade – nearly $1m higher than current prices – if they continue growing at the same rate as the past five years, new price modelling has revealed. The research by PropTrack examined what prices would be across every capital city and individual suburb if markets continued on their current trajectory, showing prices in many suburbs were on track to double in just five years. The study has laid bare the kind of jaw dropping market conditions Sydneysiders will face unless there is a significant increase in housing supply. INTERACTIVE: SEE WHAT HOMES WILL BE WORTH IN YOUR SUBURB BY 2030 Another five-year period of growth like the one experienced between 2020 and 2025 would leave Sydney house prices more than double those in Melbourne, despite a similar population and economy. Sydney would also be an average of close to $1m pricier than Brisbane – even with the 2032 Olympics forecast to give the Queensland capital a spike in property value growth. Apartment prices meanwhile would largely tread water if recent trends were repeated, increasing by a comparatively more modest pace of about $80,000 over the next five years, the data showed. The average apartment buyer would be paying about $880,000 in 2030, up from $796,000 currently. REA Group economist Angus Moore warned that past performance was not an indicator of future growth but he noted that many of the trends that drove up prices over the past five years remained entrenched in the market. This included a shortage of housing, buoyant buyer demand, strong population growth and high levels of employment. Rapid price gains over recent years have also given existing homeowners a treasure trove of equity to fund their next home purchases, driving a strong upgrader market. 'We are expecting that we're going to continue to see home prices grow this year,' Mr Moore said. 'The reason for that is that we're expecting to see interest rates falling, and that's going to boost borrowing capacities.' Sydney suburbs where house or unit prices would double if they continued growing at the same rate included Sylvania Waters in the Sutherland Shire, Waverley in the eastern suburbs, and Warrawee, on the north shore Other doubling suburbs were in the outer southwest, including Denham Court, Oakdale and Leppington, according to the PropTrack modelling. Mr Moore said a common theme in other areas that outperformed the market was relative affordability: the cheaper prices grew faster because they appealed to a broader buyer demographic. MORE: Block star unleashes on DIY 'time bombs' Local housing supply was also a factor. Suburbs more heavily supplied with apartments tended to see slower growth while those with constrained land supply generally had sharper price rises. Mr Moore pointed to Melbourne's softer home price growth over recent years as an example of why more housing was urgently needed. 'A stat I like is that a median priced home in Adelaide is actually more expensive than in Melbourne. It's a pretty wild state of affairs when you consider how much bigger Melbourne is. 'Part of the story is the fact that Melbourne does just build a lot more homes than other parts of the country … more supply has helped to keep housing more affordable.' Prospects of further price rises in Sydney have elicited mixed feelings from homeowners. Marrickville residents Tom and Bridie Studholme said frantic price rises were part of the reason they've decided to sell their unit on Sydenham Rd at auction on May 31 and move to Newcastle. Mr Studholme said they wanted to upsize and felt like as long as they remained in Sydney they would never be able to afford the kind of larger house they wanted. 'Growth has been crazy,' he said. 'We love our area and it's a fantastic unit but we ruled out buying a bigger house in Marrickville pretty quickly.' Adrian Tsavalas, director of inner west real estate group Adrian William, said it was worth remembering that prices that seemed high today would become normalised. 'If you take somewhere like Marrickville, the conversation used to be that you wouldn't be able to find a house for under $1m,' he said. 'That same conversation is now about $2m. It is only a matter of time before it becomes $3m.' Ray White chief economist Nerida Conisbee agreed that prices would continue to rise but she noted that the lending climate may not be as generous as it was at the start of the decade. 'That was an extraordinary period,' she said. 'We saw interest rates close to zero and that pushed up prices, but it's doubtful we will see that again. 'A slowing global economy will encourage more rate cuts but they won't be as low as before. Lower rates will support prices this year but beyond that it's hard to predict.'
News.com.au
09-05-2025
- Business
- News.com.au
Home prices in 2030: what houses or units will cost in each suburb
Sydney houses will cost an average of $2.4m by the end of the decade – nearly $1m higher than current prices – if they continue growing at the same rate as the past five years, new price modelling has revealed. The research by PropTrack examined what prices would be across every capital city and individual suburb if markets continued on their current trajectory, showing prices in many suburbs were on track to double in just five years. The study has laid bare the kind of jaw dropping market conditions Sydneysiders will face unless there is a significant increase in housing supply. Another five-year period of growth like the one experienced between 2020 and 2025 would leave Sydney house prices more than double those in Melbourne, despite a similar population and economy. Sydney would also be an average of close to $1m pricier than Brisbane – even with the 2032 Olympics forecast to give the Queensland capital a spike in property value growth. Apartment prices meanwhile would largely tread water if recent trends were repeated, increasing by a comparatively more modest pace of about $80,000 over the next five years, the data showed. The average apartment buyer would be paying about $880,000 in 2030, up from $796,000 currently. REA Group economist Angus Moore warned that past performance was not an indicator of future growth but he noted that many of the trends that drove up prices over the past five years remained entrenched in the market. This included a shortage of housing, buoyant buyer demand, strong population growth and high levels of employment. Rapid price gains over recent years have also given existing homeowners a treasure trove of equity to fund their next home purchases, driving a strong upgrader market. 'We are expecting that we're going to continue to see home prices grow this year,' Mr Moore said. 'The reason for that is that we're expecting to see interest rates falling, and that's going to boost borrowing capacities.' Sydney suburbs where house or unit prices would double if they continued growing at the same rate included Sylvania Waters in the Sutherland Shire, Waverley in the eastern suburbs, and Warrawee, on the north shore Other doubling suburbs were in the outer southwest, including Denham Court, Oakdale and Leppington, according to the PropTrack modelling. Mr Moore said a common theme in other areas that outperformed the market was relative affordability: the cheaper prices grew faster because they appealed to a broader buyer demographic. Local housing supply was also a factor. Suburbs more heavily supplied with apartments tended to see slower growth while those with constrained land supply generally had sharper price rises. Mr Moore pointed to Melbourne's softer home price growth over recent years as an example of why more housing was urgently needed. 'A stat I like is that a median priced home in Adelaide is actually more expensive than in Melbourne. It's a pretty wild state of affairs when you consider how much bigger Melbourne is. 'Part of the story is the fact that Melbourne does just build a lot more homes than other parts of the country … more supply has helped to keep housing more affordable.' Prospects of further price rises in Sydney have elicited mixed feelings from homeowners. Marrickville residents Tom and Bridie Studholme said frantic price rises were part of the reason they've decided to sell their unit on Sydenham Rd at auction on May 31 and move to Newcastle. Mr Studholme said they wanted to upsize and felt like as long as they remained in Sydney they would never be able to afford the kind of larger house they wanted. 'Growth has been crazy,' he said. 'We love our area and it's a fantastic unit but we ruled out buying a bigger house in Marrickville pretty quickly.' Adrian Tsavalas, director of inner west real estate group Adrian William, said it was worth remembering that prices that seemed high today would become normalised. 'If you take somewhere like Marrickville, the conversation used to be that you wouldn't be able to find a house for under $1m,' he said. 'That same conversation is now about $2m. It is only a matter of time before it becomes $3m.' Mr Tsavalas added that buyer confidence was improving. 'In a rising market buyers will be more courageous with their offers … a lot of people are expecting prices to go up later this year as interest rates are cut.' Ray White chief economist Nerida Conisbee agreed that prices would continue to rise but she noted that the lending climate may not be as generous as it was at the start of the decade. 'That was an extraordinary period,' she said. 'We saw interest rates close to zero and that pushed up prices, but it's doubtful we will see that again. 'A slowing global economy will encourage more rate cuts but they won't be as low as before. Lower rates will support prices this year but beyond that it's hard to predict.'
News.com.au
09-05-2025
- Business
- News.com.au
Forecast shock: Surfers Paradise home prices to hit $9m by 2030
Surfers Paradise could become a $9 million suburb by 2030 if the extraordinary growth of the past five years were to continue. New modelling by PropTrack, based on trends since the pandemic boom, reveals just how far Gold Coast property prices might climb unless the market moderates within the next five years. The forecast projects values more than doubling across some of the city's most popular beachside pockets as well as the most affordable unit markets. Houses in the Glitter Strip capital of Surfers Paradise were tipped to soar from the current median of $4m to a staggering $9m by 2030 — an increase of 126 per cent. A similar surge in blue-chip Mermaid Beach would see homebuyers fork out $6.46m, up from $3.2m now. The modelling identifies 16 Coast suburbs where median house prices could top $3m, including Broadbeach, Bonogin, Miami, Palm Beach, Benowa and Reedy Creek. In traditionally more affordable areas like Nerang, Southport, and Labrador, unit prices are projected to rise to about $1m. An apartment in Labrador, for example, would climb from $685,000 to $1.29m — up 88 per cent. Statewide, the current typical home price of $838,000 across all houses and units would surge 84 per cent, or $689,572, to $1.53m. PropTrack senior economist Angus Moore said growth would continue across the nation's property markets, albeit not at the bullish pace recorded post-Covid. While the projections were hypothetical, they underscored the dramatic shift in property values since 2020. 'Given how challenging housing affordability is at the moment — last year was, on our measures, the worst in at least three decades — that's obviously favouring more affordable areas,' Mr Moore said. What your home will be worth in 2030 'A life less ordinary': Medieval castle on the market He said demand had shifted toward cheaper capital cities and outer-suburban pockets. 'Queensland's been one of the big beneficiaries over the past five years. It's seen a lot of interstate migration, particularly from New South Wales and Victoria… and that's driven incredible growth, especially in regional Queensland.' The Gold Coast's enduring appeal, bolstered by lifestyle factors, ongoing infrastructure developments, and economic opportunities, continues to drive demand, according to local agents. First National Surfers Paradise agent Russell Rollington said the $9m projection for the Glitter Strip capital was 'an ambitious estimate', but 'definitely possible' given the performance of the past five years. 'Prime absolute beachfront and waterfront properties are leading the charge and they are only becoming more sought after as the population increases,' Mr Rollington said. He recently sold a Surfers Paradise sub-penthouse off-market for $7m — more than double its 2020 sale price — to a Sydney buyer who had holidayed on the Coast for 25 years and decided to make the move fulltime after retiring. 'Demand is still stronger than supply — we can't see that changing anytime soon. 'Genuine buyers are keen to get their foot in today as most feel prices will only continue to increase. I speak with buyers all the time from the other states and overseas, and they say it is their dream to move to the Gold Coast, so Surfers Paradise has a bright future.' Buyers agent Lauren Jones said the modelling was based on 'an unprecedented property boom' which was unlikely to be repeated. 'But then again, back in the day people were paying $20,000 for a house and never could've imagined a house costing even $100,000,' she said. Ms Jones said the projections didn't stack up against income data. For example, SQM Research pegged weekly family income in Logan Central south of Brisbane at $1,423 by 2026, while estimated repayments on an 80 per cent loan at 6.5 per cent interest would total about $1,804 per week, based on the PropTrack price forecast.
