The continuing growth in property values over the last decade has led to the proportion of properties valued under $400,000 to significantly reduce in recent years.
The latest statistics show that 31.2% of houses and 37.3% of units which have been sold nationally were under $400,000. This has dropped from the same time last year where the proportions were 32.8% for houses and 38.6% for units. However, when you look at the change from a decade ago you can see the massive difference with the proportions in 1997 being 62.4% for houses and 68.9% for units.
With these statistics being for properties throughout the country, it is good to have a closer look at what is happening in the capital cities where there are far fewer properties selling for under $400,000.
As an average across all capital cities, 16.8% of all house sales and 28.4% of all unit sales were below $400,000. Even comparing these figures to just a year earlier the decline in the proportion of sales under $400,000 is extremely noticeable for houses (19.0%) and somewhat less so for units (29.6%). A decade ago, more than half of all capital city house (53.1%) and unit (66.3%) were less than $400,000.
So what does this mean for property investors?
Carefully selecting your investment properties is more important than ever. As you can see, all capital cities now have less properties available for under $400,000 than just 10 years ago. While you may be able to find any property near a CBD for under $400,000, a good investment strategy involves sourcing a high quality property that won’t have much maintenance, will give you higher rental yields, and good tax returns.
With the amount of properties under $400,000 decreasing every year, finding a good, high quality property in or close to this range becomes much harder. This is where having a good team around you, who is immersed in the industry is vitally important to sourcing the best property for your investment strategy.
If you would like more information on how you can find the correct property for your investment strategy, that is still at a good price point, then get in touch with us today.
Original Article: https://www.corelogic.com.au/news/housing-supply-under-400000-dries#.WbyUNsgjHD7