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LongView | PEXA Whitepaper - What drives house prices in Australia?

By PEXA & Longview • Feb 2023
population growth OECD countries

Australia has one of the highest population growth rates in the world

Population growth rates in Australia are far higher than most developed countries.

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urban density Australian cities

Australian cities have unusual density profiles

High population densities are concentrated in the CBDs of Sydney, Melbourne, and Brisbane, with geographically large, low-density areas surrounding them.

Yield and CAGR growth comparison

Australia’s residential property market is characterised by high capital growth - and low yields

Australian rental yields have not kept up with the increases in property value.

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price growth by property type

Land value also accounts for the difference in growth between house and apartment prices over the long term

In Melbourne, freestanding houses have grown at 7% annually followed distantly by townhouses, medium-density apartments, and high-density apartments.

‘What Drives House Prices in Australia’ is the first Whitepaper in a three part series. View our second Whitepaper release to find out why private renting in Australia is a broken system. 

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