Surf’s up, but uncertain waters lay ahead for Australian coastal markets

Prices surge thanks to Australian cities' "housing bubble"

New York Weekend Edition /
Sep.September 24, 2017 03:39 PM

Australian coastal markets are looking like it’s 2007 again. Prices are going up and time on the market has been cut in half, compared to the amount of time properties were listed for five years ago.

In the Gold Coast market, median house prices are up almost eight percent and the median difference between asking and sales price is about four percent for houses, and a little higher for apartments, according to Mansion Global. The turnaround amounts to a journey back to a time before the financial crisis for the region.

Experts explain the strong market in these ocean-side areas by pointing to increases in homeowner wealth in big cities like Sydney and Melbourne. However, the strength in Australian cities’ housing markets may be cause for concern; some are calling it a “housing bubble” and warn that coastal markets’ prices could fall if the bubble pops.

[Mansion Global] — E.K. Hudson


Related Articles

arrow_forward_ios
Sam Zell with a RVC Outdoor Destinations site (Getty, RVC)
Sam Zell’s Equity Lifestyle Properties invests $147M in manufactured homes
Sam Zell’s Equity Lifestyle Properties invests $147M in manufactured homes
Gregory Russ, chair and chief executive officer of the New York City Housing Authority (NYC.gov NYCHA, iStock)
NYCHA fires 18 workers in overtime pay probe
NYCHA fires 18 workers in overtime pay probe
Jeff Aronson (iStock, Jeff Aronson, CC BY-SA 2.0, via Wikimedia Commons/Photo Illustration by Steven Dilakian for The Real Deal)
Centerbridge closes $2B real estate fund
Centerbridge closes $2B real estate fund
Scott McIntyre, chief executive officer, Guidehouse (Guidehouse, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
New York rent relief contractor boasted about profits as program struggled
New York rent relief contractor boasted about profits as program struggled
Smile! BDG nabs $125M refinancing at Harlem multifamily
Smile! BDG nabs $125M refinancing at Harlem multifamily
Smile! BDG nabs $125M refinancing at Harlem multifamily
Vector Group/Douglas Elliman's Howard Lorber (iStock, Getty Images, Vector Group Ltd., Douglas Elliman)
Howard Lorber’s $1.8M salary at Elliman offset by Vector pay cut
Howard Lorber’s $1.8M salary at Elliman offset by Vector pay cut
Fredrik Eklund with Tyler Whitman, Ryan Serhant, and Kirsten Jordan and Steve Gold (Getty, Bravo TV)
“The end of an era”: Fredrik Eklund quits Million Dollar Listing
“The end of an era”: Fredrik Eklund quits Million Dollar Listing
BHS CEO Bess Freedman and BHS agent Madison Sutton (BHS, iStock)
Brown Harris Stevens adding TikTok training to its arsenal
Brown Harris Stevens adding TikTok training to its arsenal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...