Domain blogs does a 40-year comparison of house prices. In 1973, the median house price in Melbourne was $19,800. Fast forward 40 years… it has become 30x more @ $615,068. In the same period, average weekly wages rose 12x.
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Australian house prices: Then and now
by Nicole Thomas
Source – Domain Blogs, published 2014
We take a look at the price of property in Australia from 40 years ago to today and the factors that have contributed to this upward surge.
Fifty years ago, you could nab a house for tens of thousands of dollars. Today, headlines tell us that house prices are soaring through the roof, especially in Sydney.
Spot the difference
To break it down, in 1973, median house prices across Australia’s capital cities looked something like this:
Sydney – $27,400
Melbourne – $19,800
Brisbane – $17,500
Adelaide – $16,250
Perth – $18,850
Canberra – $26,850
Hobart – $15,200
Darwin – $87,500 (information unavailable until 1986; this value reflects 1986 housing costs)
Nowadays, we’re looking at much higher digits and another set of zeroes added to the price, according to September 2014 numbers from Domain Group’s House Price Report:
Sydney – $843,994
Melbourne – $615,068
Brisbane – $473,924
Adelaide – $459,258
Perth – $604,822
Canberra – $573,326
Hobart – $322,274
Darwin – $667,115
Now, before your eyes start rolling into the back of your head, let’s put it all into some perspective: back in 1973, the average weekly wage was $111.80 (including full- and part-time workers), according to the Australian Bureau of Statistics (ABS). Today, a full-time worker makes on average $1453.90 weekly (before tax). However, in the house price report, Dr Andrew Wilson, senior economist for the Domain Group, predicts that housing-market activity will continue to decline as affordable housing falls, joblessness increases and consumer confidence wavers.
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