This week, Australian Financial Reporter Andrew McKenzie has an in-depth look at the state of the market for big houses in Melbourne.
The latest numbers from the Land Registry show Melbourne house prices are set to rise this year by 6.7 per cent to $3.7 million.
That’s a huge increase over last year’s total of $3 million.
It’s the biggest one-year increase in more than a decade, and it’s still well below the 10 per cent increase in house prices seen in 2007.
But the big increase is only likely to be short-lived.
The average price of a house in Melbourne this year is set to be about $1.6 million.
The rise has come despite the fact Melbourne has already seen a massive rise in prices.
There are now five of the world’s most expensive cities for a home, according to the Economist.
The rising prices come as Melbourne’s housing market is under pressure from a lack of affordable housing.
As the cost of housing in Australia increases, so does the number of people who can’t afford to buy a home.
It has been estimated that about 4 million households in Australia have less than $50,000 in disposable income.
In the past year, about 9.3 per cent of the population aged 16 to 64, or 8.9 million people, have been unable to buy their first home, the Government says.
And with prices expected to rise further, the problem is only going to get worse.
According to the latest Land Registry figures, a home will cost around $1,250,000 to buy in the capital city.
And while the price of the average home in Melbourne is now $1 million, that’s still $1 on the average for all of Australia.
The Government says the housing shortage is mainly a result of a government-imposed cap on the number and types of homes people can buy, which has helped reduce the demand for houses.
The caps have been implemented in all but one state, but they are only one of many factors affecting the price, affordability and availability of homes.
Some experts say there is an oversupply of housing.
But others say the caps have caused an overvaluation of housing, creating a “ghost housing market” that has made it difficult for people to find affordable housing in the market.
Mr McKenzie says the Government’s actions are helping people to get their feet under them.
“It’s an unfortunate reality but it’s not a crisis.
It’s not going to be fixed overnight but the Government has been able to act quickly to try and reduce this problem,” he said.”
If we are serious about trying to get to a more affordable place in the next 10 years, we have to look at housing affordability, and the only way we are going to do that is to address the housing crisis.”
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