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Recent research from CoreLogic has highlighted the deterioration of affordable housing across Australia’s capital cities, namely Sydney, over the past five years.
According to recent research by CoreLogic, at the end of 2016, 38.5 per cent of Sydney’s suburbs had a median value (for both houses and units) of at least $1 million, compared to only 20.5 per cent with a median value of less than $600,000.
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Highlighting the deteriorating housing affordability in Sydney, the research revealed that 34.6 per cent of capital city suburbs nationwide had a median unit value of less than $600,000 at the end of 2016.
In every other capital city, a higher proportion of suburbs had a median house value of less than $600,000 than the proportion of suburbs with a median unit value of less than $600,000.
Further, the proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at 0.1 per cent in Sydney, whereas in Melbourne it was 6.3 per cent, Brisbane 29.2 per cent, Adelaide 28.0 per cent, Perth 18.9 per cent and Hobart 52.1 per cent.
Darwin and Canberra recorded a similar proportion to Sydney, with no suburbs holding a median house value of less than $400,000.
Similarly, for units, the proportions were recorded at: 6.5 per cent in Sydney, 31.8 per cent in Melbourne, 62.7 per cent in Brisbane, 85.1 per cent in Adelaide, 46.4 per cent in Perth, 88.4 per cent in Hobart, 57.6 per cent in Darwin and 45.8 per cent in Canberra.
CoreLogic head of research Cameron Kusher highlighted that deterioration of more affordable housing has generally occurred across all the capital cities over the past five years.
“Over the five years to the end of 2016, there has been a substantial decline in the proportion of suburbs with a median value below $400,000.
“At the end of 2011, 53.5 per cent of suburbs had a median house value of less than $400,000 and 69.8 per cent of suburbs had a median unit value of less than $400,000.
“By the end of 2016, the proportion of suburbs with a median value of less than $400,000 had fallen to 41.0 per cent for houses and 55.3 per cent for units.”
[Related: Affordability worsens amid resurgent house price growth]
