Think our house prices are out of control?
Price growth in Australia’s regions may be at all-time high, but the phenomenon isn’t unique.
The worldwide move towards work-from-home arrangements, as well as the desire for more space has meant that countries like New Zealand and Canada have been experiencing the same trend.
Australia’s regions recorded a staggering 19.6 per cent median house price growth in the 12 months to July.
While it will likely provide little comfort to those struggling to break into the fast-moving regional market in Australia, spare a thought for those trying to buy in Canada’s regions, where house prices in some towns rose by more than 70 per cent during 2020.
Auckland’s skyrocketing house prices are hardly a new phenomenon – the city has long ranked among the most expensive in the world for homebuyers.
Median prices in the Marlborough region, located in the northeast of the South Island and with a population of 50,200, rose 41.5 per cent in the year to July to sit at $NZ672,000 ($642,000).
In Hawke’s Bay, on the east coast of the North Island, prices grew by 32.7 per cent. The median house price in the region, known for its wineries, is currently $NZ730,000 ($697,000).
Canada has recorded an increase in house prices at a national level similar to those witnessed in Australia.
The RPS House Price Index reported that prices rose 19.4 per cent in the year to June to sit at $CA733,950 ($797,000). The index measures prices in 3500 cities and towns across Canada.
But rises have been far higher in smaller towns outside of Canada’s major cities, with Reuters reporting earlier this year that some towns had seen price gains of more than 75 per cent in 12 months.
In Prince Edward County, which has a population of 24,735 and is located around 200 kilometres from Toronto, prices had increased by 78.5 per cent on the year prior, with an average price of $CA740,112 ($803,000) in April.
In Collingwood, also in Ontario, prices rose by 65 per cent, while in Nelson, British Columbia, they were up 46 per cent.
News channel France 24 reported in May that a record number of country homes were sold in 2020. All up, the FnSafer association, which handles rural property sales, brokered 111,930 purchases last year, a 6.6 per cent increase on 2019’s figures.
Transactions involving properties with at least five hectares of land attached 23.5 billion euros ($37.5 billion), a 12.1-percent increase over the year.
English-language news site The Connexion reported this month that chateaux sales had also been booming of late, following years of a flat market.
Real estate portal Right Move reports that interest in coastal areas has increased significantly since 2019, with properties in coastal areas being snapped up 20 days faster, within 51 days. Enquiries for coastal properties on the site from city-based buyers has also increased 115 per cent since 2019.
Prices in Helensburgh, Dunbartonshire have risen by 27 per cent since 2019, and are currently selling for an average price of £236,209 ($445,000).
Padstow, Cornwall has seen prices increase by 24 per cent to £624,896 ($1.18 million).
– BY REALESTATEVIEW.COM.AU