Surf’s up, but uncertain waters lay ahead for Australian coastal markets
Prices surge thanks to Australian cities' "housing bubble"
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