Property prices must drop by half, says expert
Australian Broker27 Mar 2017
Sydney's house prices need to be slashed in half and the average property value needs to decline by more than 35% to deal with the affordable housing crisis, according to a leading property analyst. Michael Matusik, who runs a consultancy in Brisbane, said this decrease in house prices was necessary to ensure an affordable ratio of average household income to median house price. While the accepted housing affordability benchmark puts dwelling prices at three or four times the average household income, Matusik took into account differences between various locales, adjusting this to six times for Sydney and Melbourne, five times for south east Queensland, Canberra and Perth, and four times for the rest of Australia. This means that house prices in Sydney would have to fall by $602,000, or 47%, to reach an affordable price...