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Is this the end of affordable property?

Is this the end of affordable property?

As million dollar listings increase, there has been a significant reduction in the proportion of sales occurring below $400,000 across Australia.

Data from CoreLogic shows that the percentage of property sold for less than $400,000 has dropped from 32.8 per cent for houses to 31.2 per cent and 38.6 per cent for units to 37.9 per cent over the 12 months leading to June.

When you compare this to ten years ago, the difference is striking. 62.4 per cent of all house sales and 68.9 per cent of units were priced below $400,000.

Annual % of sales below $400,000 – National

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CoreLogic has also found that there are far less properties selling below $400,000 in capital cities than in regional areas. Across the combined capital cities, prices below $400,000 dropped to 16.8 per cent for houses and 28.4 per cent for units.

Outside of capital cities, 52 per cent of houses and 60.5 per cent of units sold over the 12 months to June were priced below $400,000.

Although, if you’re looking for a sea change you may want to act quickly. These regional areas are also experiencing a drop in the percentage of below $400,000 properties, as a year earlier the proportions were recorded at 54.3 per cent for houses and 63.2 per cent for units.

Annual % of sales below $400,000 -Individual Capital Cities

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