Property Value-To-Income Ratio Hits Peak
Data from ANZ and CoreLogic shows a record high in the June quarter.
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The national dwelling value-to-income ratio reached a record high in the June quarter according to a new housing affordability report from ANZ and CoreLogic.
Based on median income data from ANU against property statistics from the research specialist, the report found the national dwelling value-to-income ratio reached a record high of 7.7 in the June quarter above the decade average of 6.3 and up from 6.4 in the September 2020 quarter.
Houses saw a sharper ratio when compared to units, leading to the widest gap on record. For houses, the ratio had risen from 6.7 to 8.1 while units experienced a mor moderate increase from 6.2 to 6.8.
Focusing on capital cities, the dwelling value-to-income ratio was recorded at 8 — the highest reading on record. The combined capital city ratio had trended consistently higher since the September quarter last year.
Across the combined capital cities, the median dwelling value, as at June, was %727,427, a 52.1% premium on the equivalent median value across regional Australia.
Sydney had the highest value-to-income ratio, at 10.1, followed by Melbourne and regional NSW, both at 8.5.
Dwelling values across regional Australia rose by 18.1% between March 2020 to June 2021 — against a lift of 11.2% in combined capital city values.
In regional Australia, the median dwelling value-to-income ratio was 6.8. The ratio for houses went from a record low of 5.7 in September 2020 quarter to a record high of 5.7 in June 2021.
There are further property rises expected against household income in the coming months, as Australian house values rose a further 6.8% in the four months to October.
Between March 2020 and June 2021, CoreLogic data indicted the national median housing values have risen by 12.6%.
In the meantime, ANU income modelling suggested the median household income has fallen relatively flat, with an increase of 0.2%.
Based on households saving 15 per cent of their gross annual income, it would now take the typical household a record high of 10.2 years to save a 20 per cent deposit for an Australian dwelling, as at the end of June.
For houses, that means saving a 20% deposit would require a time frame of 10.8 years vs a nine-year period for units. Elsewhere, across capital cities, the average time frame to save a deposit has lifted to 10.7 years — 11.7 years for houses and 9 years for the median value unit.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
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A water lily painting by Claude Monet of his Giverny gardens is expected to achieve at least US$65 million at Christie’s November sale of 20th-century art in New York
Le bassin aux nymphéas, or water lily pond, painted around 1917 to 1919, is a monumental canvas extending more than six-and-a-half feet wide and more than three-feet tall, that has been in the same anonymous private collection since 1972. According to Christie’s, the painting has never been seen publicly.
The artwork is “that rarest thing: a masterpiece rediscovered,” Max Carter, Christie’s vice chairman of 20th and 21st century art said in a news release Thursday.
A first look at this thickly painted example of Monet’s famed and influential water lily series will be on Oct. 4, when it is revealed in Hong Kong.
The price record for a Nymphéas painting by Monet was set in May 2018 for Nymphéas en fleur, another large-scale work that had been in the collection of Peggy and David Rockefeller. That painting sold for nearly US$85 million.
The current work for sale is guaranteed, Christie’s confirmed. The auction house did not provide further details on the seller.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
