Australian homes the world’s largest
November 30, 2009
Supporting recent commentary from the RBA, new research shows that Australians are indeed investing heavily in upgrades and home extensions, ensuring that property investment remains high despite somewhat lacklustre growth in new homes.
The new data from the Australian Bureau of Statistics highlights that Australia has usurped top spot from America in the race for the largest average home, with the average Australian house growing by 10 per cent in the past decade to a record of 214.6 sq metres - three times the size of the average British house. The east coast led the way in terms of growth over the past decade.
The data also adds weight to claims from the Reserve Bank that it is dangerous to compare Australia’s house prices to those of the rest of the world. On a number of measures it appears Australia’s housing market might be ‘toppy’ compared to many developed nations but wage growth, consumer spending habits and the quality of housing are all factors that might justify current prices, according to the RBA and this study. Added to that is population growth and a lack of supply, which has the Real Estate Institute of Victoria even predicting that $1 million could possibly be more like the norm for house prices in a decade.