Australian property has always had a reputation amongst British expats as being amongst the most affordable options for an overseas investment, and once again the domestic market is offering good value.
The HIA-CBA Housing Affordability Index has shown that property prices in Australia are now at their most affordable levels since 2009 when the global financial crisis hit ‘down under’.
In the final quarter of last year Australian affordability levels had increased by 5.5% marking an 18% year-on-year rise.
Data on mortgage costs, home prices and corresponding household income gathered over the past four years has revealed that prospective buyers are in a favourable situation due to average wage rises, interest rate cuts and slow home price growth.
Although affordable, the market certainly isn’t in decline, with rising prices adding to the attraction for prospective purchasers. Hobart has seen price levels rise 5.3% whilst in Sydney there was an increase of 4.1%.
In spite of the figures, activity levels remain low and much of this is being put down to the fact that lenders are still reluctant to provide funds for purchases.
The early part of this year saw the positive trend continue, with figures from RP Data showing that dwelling values across the combined capitals increased by 2.8% between January and March.
RP Data research director Tim Lawless said: "Since the capital city housing market bottomed out at the end of May last year we have seen dwelling values rise by 4.7% after falling by 7.4% from their market peak back in late 2010.
“The most significant recoveries have been recorded across Darwin, where values have risen 13.9 per cent since bottoming out in January last year, and Perth where values are up 9.4 per cent since the market trough in November 2011," he continued.
If you are interested in investing in Australian property you will inevitably have to send money there, so be sure to compare the market before you buy your overseas currency.