Housing affordability has significantly declined since the 1980’s and has been a long-standing issue among average Australians, with the OECD’s income to ratio index showing a 78% increase between 1980 and 2015.
A recent study conducted by PRD Nationwide analysed each state and capital city for the first half of 2018 to measure suburb’s affordability and livability, factoring in price growth, rental yields and project development.
“Livability is gaining traction among home buyers and does attract a cost.” The report states.
People are finding that the location they live in either benefits, or hinders their family in terms of affordability, and the liveability of the location, also contributes towards their overall happiness.
Psychologist, author and “Chief Happiness Officer”, Dr Timothy Sharp knows why this is key.
Dr Sharp says where we live also influences the activities we do and affects the ease with which we can access social and recreational activities.
“So indirectly, the location in which we live affects our lifestyle, which not surprisingly is important for our mental health and happiness. This also includes our neighbours and community, which have been shown to be vitally important for our health and wellbeing.”
This latest report release provides insights into the cost of livability and the cost in which home buyers are prepared to pay to have this important requirement met.
Suburbs were rated on the following important features; entry price points, amenities, schools, parks, health care facilities, shops, unemployment rates and crime rates.
Brisbane had the lowest entry price point and the highest rental yield. The suburb of Algester in Brisbane proving to have the best affordability and livability given its low entry prices and proximity to local amenities, motorway access and schools.
“It is no longer realistic to simply report on affordable suburbs, but to include those that have high ‘livable’ factors,” the report stated.
At the recent Property Council’s outlook lunch on 8 February 2019, social demographer Bernard Salt said southeast Queensland was set for an extraordinary boom delivered by Baby Boomers selling out of their multi-million-dollar properties.
“(They will be) buying a better property than they had and using the balance to top up their super, or to live a particular lifestyle,” he said.
“There’s five million Baby Boomers, now aged between 55 and 70, the mid point is 63/64, so you could argue that the next five years really is going to be a golden era for retirees, interstate migrants moving north.”
“The bottom line here is that over the next 25 years Brisbane’s population is going to double … it means that demand for all sorts of property is essentially going to double over the next 25 years.”
ANZ Head of Australian Economics David Plank
The fastest growing Brisbane suburbs were also recently announced, according to Terry Ryder of Hotspotting's latest Price Predictor Index.
The index showed that Brisbane suburbs were “rising steadily”, with the best market being the affordable Moreton Bay region.
“The Brisbane market is showing signs of uplift, with more growth suburbs emerging in the latest survey,” Mr Ryder said.
Mt Gravatt East
(Source: The Price Predictor Index)