Gympie property buyers insulated from tidal wave of woe
THE Gympie region's ability to accommodate its growing population while still maintaining low density housing had insulated buyers from the "tidal wave of woe” unit owners in most Australian capital cities were now experiencing, an industry expert said yesterday.
Propertyology Head of Research Simon Pressley said the construction industry in capital cities was critically ill and advised the owners of apartments within a medium to high density building constructed since the start of the century to "sell sooner rather than later” before prices drop even lower.
That dire situation is vastly different in the regions.
"The ability for Gympie to accommodate its growing population while still maintaining low density housing provides the local property market with immunity from the bubonic plague that has infected high density apartments in Australia's biggest cities,” Mr Pressley said.
"Gympie's population of 51,500 people is housed within approximately 24,000 residential dwellings. Ninety per cent of dwellings are detached houses.”
"Same-same, mass-produced Lego buildings, appalling governance within the Australian construction industry, embarrassingly poor-quality workmanship, and approximately 40 per cent of the purchase price of a new property representing assorted taxes is a toxic combination,” Mr Pressley said of the situation in capital cities.
"The research confirmed that even during periods of strong market conditions such as the past five years, unit price growth significantly underperformed houses, including prices falling below 2014 levels in three capital cities.”
Mr Pressley said the research confirmed that the differential between median house price and median apartment price growth in Australia's biggest cities was between 20 per cent to 30 per cent in the five years to April this year.
"Propertyology expects this price growth differential will continue to widen for an indefinite period of time," Mr Pressley said.
"What this means going forward is that if the median house price within a specific location increases by, say, 20 per cent over a five-year period, the value of an apartment is likely to decline.
"In fact, for the owner of a medium- to high-density apartment to achieve even a modest amount of growth in asset value, their local market would need to produce a property boom - and such a possibility currently seems many years off for most Australian capital cities."
In addition to the concerning financial performance, most of these dwellings are laced with repair bills worth millions of dollars due to extreme structural integrity concerns, he said.
"The absence of good hygiene within the construction sector - that is, prudent quality control - over the past two decades has resulted in a deplorable quality of workmanship, primarily within Australia's mass-produced dwellings in our biggest cities," he said.
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