The likelihood of owning a home is becoming increasingly low as residential property becomes unaffordable for the average Australian, according to the country’s leading valuers.
Research from the Australian Property Institute and property technology provider The Search People also found professional valuers believe Australia’s residential real estate prices will continue to rise despite serious affordability and sustainability concerns.
The ‘Future of the Australian Valuation Industry’ report found 63 per cent of participants predict property values across the country to rise over the next six months, with 57 per cent join a growing caucus who believe the great Australian dream of owning a home is now unaffordable to residents.
The Search People chief executive Rafe Berding said majority of property valuers surveyed predict a continued positive growth story for property values in the short to medium term.
“Most respondents believe a boom is set for the Australia property sector, however 59 per cent also believe Australia is currently witnessing the makings of a property bubble,” he said.
Mr Berding added more than half (55 per cent) of the 500 respondents believe Australians are overcapitalising when it comes to purchasing property.
“A combination of record low interest rates and buyer’s uncertainty of investing in other alternatives is fueling high-demand. This coupled with low supply is driving a ‘fear of missing out’ for many buyers.”
“As a result, in some cases, properties are being snapped up significantly above the asking price within moments of being listed”.
“In these times, it is even more important that property owners have the information to determine where the underlying value lies in relation to both purchase and capital improvements.”
Australian Property Institute chief executive Amelia Hodge believes the market is firing on all cylinders, with some API property professional members starting to experience capacity constraints.
“With record low interest rates, we’re seeing more and more buyers entering the market,” she said.
“This is great news for Australians selling property, especially with values on the rise in most sectors and selling times decreasing across most capital cities.”
“For property investors and buyers, we would recommend ensuring you have your budget, finance and valuation research in order as early as possible to ensure you can decisively move on opportunities with confidence and speed.
“This should always be underpinned by an independent valuation undertaken by an appropriately qualified property professional.”