Residex and Australian Property Monitors have performed a comparison of real estate prices around the world. What is truly surprising is that the average house in Darwin, Australia is more expensive than its equivalents in London and New York. Work conducted indicates that the median cost of a Darwin house is $549,035 – almost $90,000 over the equivalent residence in London, where the median price for a two to three-bedroom house is $462,000.
By comparison, a two-bedroom, free-standing house in the New York City metropolitan area (not including Manhattan) is about $80,000 cheaper. Residex head of research John Lindeman was surprised that houses in such world cities as London and New York are also cheaper than in Sydney. Prices are set by Demand and Supply. Clearly demand for Sydney houses, is not keeping up with the available supply – and that’s unlikely to change in the immediate future.
Sydney house prices are almost a quarter of a million dollars higher than in Los Angeles. The peak US industry body, the National Association of Realtors, puts the median house cost at $401,000. Las Vegas is even more affordable, with the price of a median house at just $166,000. Darwin’s real estate market only failed to outstrip the major Canadian city
of Vancouver, where the median house price is $612,000.
Mr Lindeman said house prices were driven by population growth, as Australia was the fastest-growing Western nation. By comparison, Japan population is both ageing and falling , meaning there’s less demand for houses. Less demand, drives prices down.
Australia is at the opposite end of the spectrum – younger people are flocking into our capital cities.