Australian Property Prices Soar as Sizes Shrink: What You Need to Know
The Australian property market is facing a significant trend – properties are getting smaller in size, but the price per square metre of land is skyrocketing. According to Domain’s latest Price Square Metre Report, house and unit prices per sqm in capital cities are on the rise due to higher prices and smaller land sizes.
In Sydney, the most expensive capital city, houses cost an average of $2,590 per sqm. However, in suburbs like Paddington and Darlinghurst, prices soar above $20,000 per sqm, with houses fetching $27,440 and $25,065 per sqm, respectively. Melbourne follows closely behind, with house prices reaching $1,838 per sqm, while Canberra, Perth, Brisbane, and Adelaide are also experiencing increasing prices per sqm.
Dr. Nicola Powell, Domain’s chief of research and economics, noted that Australia’s shift towards greater urban density and smaller land sizes is crucial for housing affordability. Without this shift, house prices would be significantly higher across various cities.
Sydney buyers are feeling the impact the most, with all of the top 25 most expensive suburbs in Australia by square metre located in the city. A recent sale in Paddington saw a 56-sqm studio fetch $1.39 million, translating to a staggering $24,821 per sqm. Despite the limited space, there are opportunities to make the most of it, as real estate agent Ben Collier suggests utilizing mezzanine levels to maximize living space.
The Australian property market continues to present challenges for buyers, with prices per sqm on the rise and land sizes shrinking. The balance between affordability and space is a key issue for those looking to invest in the country’s real estate market.
