Property Value-To-Income Ratio Hits Peak
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Property Value-To-Income Ratio Hits Peak

Data from ANZ and CoreLogic shows a record high in the June quarter.

By Terry Christodoulou
Mon, Nov 29, 2021Grey Clock 2 min

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.

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By Robyn Willis
Fri, Aug 5, 2022 2 min

When people talk about making a seachange, chances are this is the kind of property on the NSW South Coast that they have in mind.

Open for inspection for the first time this Saturday, 24 Point Street Bulli offers rare absolute beachfront, with never-to-be-built-out north facing views of the ocean. Located on the tip of Sandon Point, this two-storey property is a surfer’s dream with one of Australia’s most iconic surf breaks just beyond the back wall.

On the lower floor at street level, there are three bedrooms and two bathrooms, including a family bathroom and an ensuite in the master suite. A fourth bedroom is on the upper floor, along with the main living area, and is serviced by its own bathroom. 

While this would make a spectacular holiday home, it is well equipped for day-to-day living, with a spacious gourmet kitchen and butler’s pantry set into the articulated open plan living area on the first floor. A separate media room to the street side of the property on this level provides additional living space. 

Every aspect of this property has been considered to take in the light and views, with high ceilings internally and spacious, north facing decks on both levels to take in views of rolling waves. If the pull of the ocean is irresistible, it’s just a 100m walk to feel the sand between your toes.

The house is complemented by a Mediterranean, coastal-style garden, while the garage has room for a workshop and two car spaces.

An easy walk to Bulli village, the property is a 20 minute drive from the major hub of Wollongong and just over an hour to Sydney.

 

Open: Saturday August 6 2pm-3pm Auction: Saturday September 3 Price guide: N/A but expected to exceed $5.3m paid in March for 1 Alroy Street 

Contact: McGrath Thirroul – Vanessa Denison-Pender, 0488 443 174