Commercial Real Estate

Commercial Real Estate Connect Australian housing prices hit $200,000 a year in 2018, official figures show

Australian housing prices hit $200,000 a year in 2018, official figures show

Updated May 10, 2018 13:04:19The price of a single-family home in Australia has risen from $1.9 million in 2017 to $2.3 million in 2018.

The rise in price was driven by the sharp drop in prices across the country and the impact of an increase in stamp duty on the price of new houses.

The Government announced last week it would increase stamp duty to 8.9 per cent in 2018 and 7.5 per cent this year.

However, the rate will not apply to new houses built after February 2018.

For now, the Government will be forced to raise rates on existing homes to offset the impact on the cost of buying and selling.

It has also reduced the threshold to $3 million to fund the new stamp duty increase.

The price increases have been widely welcomed by housing advocates, who have long advocated for a reduction in the cost and scope of the Government’s stamp duty.

“This is a welcome move from the Government, which is clearly determined to make sure that the Australian housing market is not hit with significant additional stamp duty increases over the next few years,” said Sam Hensley, executive director of the Australian Property Investors Association.

“It will help to maintain a low and stable level of demand for rental properties in the next year or two.”

While the increase in property prices will impact those who live in regional areas, it also will impact on families living in the metropolitan area.

“The Government needs to step up and stop the downward spiral of housing prices in our cities,” said Ms Hensleys co-founder, Peter Gervais.

“This is an important step in helping to keep the market stable.”


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