A new global report has revealed Australia’s house and unit values are the second priciest in the world, having more than tripled since 1975.
According to property group CBRE’s Global Living Report, Australian home and apartment values have risen faster than any other housing market in the world, except Britain, during the past 30 years.
From 1975, Australian house prices have risen 221.4 per cent and British house prices increased 232 per cent. Britain and Australia were closely followed by Ireland at 185.5 per cent, Belgium at 174.4 per cent, France at 147.0 per cent and Norway at 144.6 per cent.
Sydney property has been cost at a staggering at $3,296 per square metre.
CBRE Australian Research Head Stephen McNabb told the Australian Financial Review that factors including a chronic undersupply of new housing, continued population growth and strong immigration numbers are key influences behind fast-growing Australian capital values.
“Australian capital values have been supported by a good market balance,” he said.
“Under-building has been more prevalent over the past 10 years, combined with relatively strong population growth.”
Mr McNabb also mentioned that a degree of financial stability throughout 2007/2008 also supported Australian housing values at a time when many other countries suffered falls due to the global financial crisis.
“The Australian economy and sound position of the financial system and the banks has supported capital appreciation without an extreme period of deleveraging in the household sector, which affected asset values in Europe and the US during the GFC,” he said.
The report also revealed that Sydney is now the fourth-most expensive city in the world for new apartments.
A comparison of per-square metre prices paid for new apartments put Sydney ahead of Paris, which has an average price of $2,197 per square metre.
London remains the most expensive market in the world for new apartments, at $3,662 per square metre, followed by Hong Kong and New York, which sit comfortably ahead of Sydney.
Paris is ranked fifth most expensive, with new apartments being sold for an average price of $2,014 a square metre.
Japan and Germany are the only two developed countries to suffer house price falls in the past 30 years. Germany's capital values fell by 7.8 per cent and Japan's fell by 14.5 per cent.