Owning A House: Will We all be Living in Apartments Soon?
- 16 November 2018
Australia’s housing market is one of the strongest in the world, and we’ve seen a 31% increase in housing values across the country over the last five years. With our capital cities becoming more crowded and less affordable, apartment sales are also rising. New apartment buildings are being built at an incredible rate – but does this mean that the great Australian dream of owning a house, complete with backyard, something of the past? Not according to the latest research.
What does the data show?
Mortgage stress affects many Australians, and a recent report by SCA Research & Insights shows that even the smallest rise in interest rates could see another one million households experience mortgage stress. As housing values have increased across many capital cities, it may seem that the idea of owning a home is becoming something of an outdated notion. This is not the case, according to the data.
Around 96% of Australians still hope to own their own home, despite many believing that it might be difficult to achieve. Over the last 20 years, however, the rate of mortgaged homes has risen by 20%. It appears that there are more Australians than ever buying their own homes these days, and it’s a trend that we’re unlikely to see slow.
Are stand-alone homes still being built?
With the rapid rise in apartment buildings around many of our cities and major towns, you’d be forgiven for thinking that perhaps the stand-alone home is becoming a thing of the past. In fact, nothing could be further from the truth. New land is being developed every year, all around our major towns and cities. Last year alone, over 117,000 new home construction projects were started. That’s up from 91,297 in 2012. The total number of new units or apartments which began construction last year was lower than the number of free-standing homes, at just over 99,000.
As you can see, the stand-alone home is still very much a reality for many Australians, and construction of new builds remains strong, year on year.
Are houses still affordable?
It’s true that many Australians choose apartment-style living for affordability reasons, as well as lifestyle and location considerations. The average median house price in Sydney last year was in excess of $1 million, whereas the median apartment price was significantly lower at just $740,000. Despite the popularity of apartments and units around the country, the number of stand-alone homes also continues to grow. This is largely because of location options in the outer suburbs of our major cities. While a 3-bedroom home in Sydney’s inner city might set you back over a million dollars, the same prices simply don’t apply to the outer-lying suburbs. With great transportation options and ongoing investment in infrastructure by local and state governments, being a little further from the city isn’t as much of an impediment to lifestyle as it once might have been.
Take Brisbane, for example: With new housing developments in Greenbank, Park Ridge, and Logan Reserve, families in South East Queensland have an exciting range of housing options just a stone’s throw from the city. Three-bedroom house and land packages starting from just $399,000 and land plots from just $190,000, buying a stand-alone home with the quintessential Aussie back yard is still extremely affordable.
Why buy a house in 2019 and beyond?
There’s no denying that apartment living is attractive to many Australian families for a range of reasons. And whilst our lifestyles and living arrangements do change year after year, owning a free-standing home is still an important goal for a large number of home buyers.
With so many fantastic new land developments being released each year, owning a free-standing home is still remarkably achievable for first home buyers, seasoned home owners, and investors alike.
Building a new home is not only affordable but gives home buyers the chance to create something that is uniquely theirs. A house and land package is a popular option for home buyers looking for a free-standing home, for a number of reasons, including:
- No surprise costs
- Lower ongoing maintenance costs
- No body corporate fees (unlike apartments)
- High-quality, brand-new fixtures and fittings
- High-speed internet ready
- Fully landscaped yards
- Ready to move into
For those looking for the ever-popular backyards for the weekly family barbeque, the extra space of a 3rd or 4th bedroom for that growing family, and the community environment that comes standard with a master-planned neighbourhood, there’s no going beating a Villa World address.
Owning your own home is far from out of reach with Villa World’s range of fantastic developments. To find your new address today, get in touch with one of our friendly Villa World team. The home of your dreams could be just around the corner.