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Latest CoreLogic data shows that $400,000 just doesn’t buy what it used to in the property market.
Detailed in the latest Property Pulse, data from CoreLogic shows that in June 2017, 31.2 per cent of houses and 37.3 per cent of units sold for under $400,000.
When compared to 10 years ago, these figures were nearly both double, at 62.4 per cent and 68.9 per cent, respectively.
When looking at the year to June 2017, an even bleaker picture is painted for those in a buying phase, where less than 17 per cent of house sales and 28.4 per cent of unit sales were under $400,000.
“Even comparing these figures to just a year earlier the decline in the proportion of sales under $400,000 is extremely noticeable for houses (19.0 per cent) and somewhat less so for units (29.6 per cent). A decade ago, more than half of all capital city house (53.1 per cent) and unit (66.3 per cent) were less than $400,000,” research analyst Cameron Kusher said.
Outside of capital cities, properties become more affordable, with 52 per cent of houses and 60.5 per cent of units over the last year to June 2017 priced under $400,000.
In comparison, a year before, these percentages were at 54.3 per cent and 63.2 per cent, respectively, and 10 years ago, they were 75.6 per cent and 75.2 per cent.
Looking to the future, Mr Kusher predicts that the percentages will become even smaller over the next year, while the percentage of property worth over $1 million will increase, as covered previously.
“As dwelling values continue to increase, we anticipate that over the next 12 months the proportion of properties selling for less than $400,000 will further reduce, and in the way that the rising number of sales of properties for at least $1 million shows the deteriorating affordability, so too does the significant reduction in the availability of properties priced under $400,000,” Mr Kusher said.
“Although the federal government attempted to address housing affordability in the budget this year, in order to improve housing affordability, clearly there is much more work to be done on both supply and demand drivers of the market.
“A greater supply of stock which could potentially reduce prices would at the very least be a good start; however, the supply needs to be supported by sufficient infrastructure and employment opportunities.”
The percentages of sales under $400,000 in every capital city during June 2017 are:
| Capital city | House sales | Unit sales |
| Sydney | 3.1% | 7.4% |
| Melbourne | 10.1% | 29.9% |
| Brisbane | 26.3% | 47.4% |
| Adelaide | 39.3% | 59.2% |
| Perth | 24% | 45.6% |
| Hobart | 53.2% | 78.3% |
| Darwin | 29.3% | 40.8% |
| Canberra | 3.4% | 28.4% |
Meanwhile, the percentages of sales under $400,000 in every capital city during June 2007 are:
| Capital city | House sales | Unit sales |
| Sydney | 35.5% | 53.9% |
| Melbourne | 58.5% | 70.4% |
| Brisbane | 62.5% | 74.3% |
| Adelaide | 76.6% | 85.9% |
| Perth | 40.6% | 60.4% |
| Hobart | 80.3% | 90.5% |
| Darwin | 66.7% | 90.1% |
| Canberra | 40% | 77% |
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