HIA: Gold Coast housing affordability the best it has been since the 1990s

first_imgREIQ Gold Coast zone chairman Andrew Henderson agreed that the city was experiencing some of the best buying conditions in decades. “If you’re looking to purchase property, taking those indicators into account should give you a high confidence level that now is a good time to secure your home or investment,” he said. “With the interest rates at low levels it gives people the opportunity to purchase their dream property sooner. “Anyone waiting on the sidelines for property prices to drop, there’s no point waiting any longer.” Talking of 1999, here’s what the Gold Coast looked like then when the M1 motorway was under construction.“For a homebuyer with an average income purchasing a median priced dwelling (assuming a 10 per cent deposit), mortgage repayments will consume the smallest proportion of their earnings since 1999,” HIA senior economist Geordan Murray said. The interest rate, which hit an all-time low of 1 per cent recently, has had the biggest impact, according to Mr Murray. MORE NEWS: Business opportunity dished up with a side of history Buying on the Gold Coast is as affordable as 1999, according to a new report.PROPERTY on the coast is the most affordable it has been in two decades, almost as if you were buying in the 1990s, latest data shows. Property price falls, wage growth and record-low interest rates were combining to boost the Gold Coast market’s affordability back to 1999 standards, according to the Housing Industry Association’s June quarter affordability index. center_img MORE NEWS: House deposit could buy you this whole property More from news02:37International architect Desmond Brooks selling luxury beach villa10 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day ago“The main reason the HIA affordability index today is comparable with the level in 1999, despite house prices rising significantly faster than incomes, is that (average mortgage) interest rates are 4.6 per cent today compared with 6.7 per cent in 1999,” he said. “Average earnings have increased by 113 per cent over the 20 years to 2019, while the median home price has increased by 228 per cent but the lower interest rates have kept the cost of servicing a loan the same.”Australia’s median dwelling price was just $190,978 in 1999 compared to $538,837 today and the average full time wage has increased from $39,703 to $84,611 today, according to the report. Mr Murray said the correction to the national housing market along with the positive buying conditions would mean the Gold Coast would continue to thrive. “The reduction in interest rates was a significant factor behind the improvements in affordability in Queensland,” he said. “The lower borrowing rates will benefit households on the Gold Coast just as they are in other parts of the country.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:25Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:25 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p432p432p288p288pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenDavid Koch puts property price falls in perspective01:26last_img