Core-Logic RP Data has released a new report looking at property price-to-income ratios for Australia’s major markets, which finds that both Sydney and Melbourne’s valuations have hit an all-time high:
In March 2016 the ratio of house prices to annual household income in Sydney was 9.8 and for units it was 7.2. Both property types are currently recording a record-high ratio. 12 months ago these ratios were recorded at 8.9 for houses and 6.8 for units. Note that the data goes as far back as September 2001 and at that time the ratios were recorded at: 6.0 for houses and 5.7 for units.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
