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Property prices are falling across Australia amid the market downturn, but the typical house will still set buyers back more than $1 million.
Buyers need a seven-figure budget to afford Australia’s median house price, which sat at $1,008,988 across the capital cities last quarter, Domain Data shows, after falling 5 per cent over the year as rising interest rates hit buyer budgets.
From a historic townhouse in Hobart to a four-bedroom home with a pool near Brisbane, buyers can get a variety of properties for the national median house price.
There are still plenty of property seekers looking at the price point, agents report, but just what they can get for such a budget varies greatly across the capitals.
In Sydney, the national median house price can get buyers a look-in to a three-bedroom house at 17 Kuranda Avenue, Padstow which has a guide of $950,000 and goes to auction next month. That is below Sydney’s house median of about $1.4 million.
The home, about a 28-kilometre drive from Sydney’s CBD, is still in original condition and needs some renovation work, McGrath Revesby’s Matthew Laface said.
The property and that price range typically had a lot of interest from first home buyers. Some were also looking to rebuild on the 556-square-metre block.
“There are a lot of different properties at that price range, but they’re [generally] smaller – mainly townhouses, villas or duplexes,” Laface said.
In Melbourne, the national median could get buyers into a townhouse in Newport, about 11 kilometres west of the city.
The three-bedroom, double-storey home at 1/1 Basil Street is modern, with a small outdoor area and a double garage. It has been listed with hopes of $950,000 to $1 million. Melbourne’s median is about $1.03 million.
RT Edgar Williamstown director Joanne Royston said upsizers were the typical buyers looking at the $1 million mark in Melbourne.
However, Williamstown said it had become tougher to find a home at the price point, as listing numbers were lower as vendors held off hitting the cooler property market.
“There’s not a lot of opportunity at that price point,” Royston said.
Closer to the city, in Fitzroy North, a modern two-storey townhouse is for sale with a price guide of $870,000 to $950,000.
The property at 1/157 Holden Street has been marketed towards investors and has a courtyard and a car park.
Nelson Alexander Carlton North partner Nicholas West said the $1 million mark was popular, due to limited supply and buyers keen to transact before their borrowing capacity fell further.
“Every interest rate rise has had an effect on people buying at that range, more so than those with a $2 million budget,” West said. “So people are really keen on buying and locking in a good rate right now.”
Meanwhile, near Brisbane, a four-bedroom house with a pool at 4 Lacebark Court, Bellbowrie, about a 40-minute drive from the city centre, is for sale for over $995,000.
Principal agent with Ireland & Co, Matt Ireland, has had interest from buyers looking for a lifestyle property, particularly those looking to move from Sydney or Melbourne.
“It’s not first home buyers that are interested at that price range,” Ireland said.
He noted that vendors of more expensive properties in Brisbane, where the median sits at about $800,000, had become more realistic with the price expectations as interest rates climbed. However, the rate hikes had not deterred buyers from making offers.
In Hobart, where the house median is a little under $740,000, buyers could pick up a townhouse — currently configured as two units — in a converted Federation home at 1-2/15 Bath Street, Battery Point. It has been advertised with a guide of $995,000 plus.
Originally built in the early 1900s, the properties have original features along with more modern bathrooms and kitchen and views of the River Derwent and nearby Sandy Bay marina.
Selling agent Kim Morgan, director of Peterswald for property, said a budget of $1 million would buy a comfortable cottage or townhouse in Hobart. While further away, in areas close to the Eastern Shore like Taroona, it would buy a larger, modern home.
“Prices have softened a little bit,” Morgan said. “One million is just beyond the first home buyer range but for those who are downsizers, or looking for a second home, it is a very popular price range.”
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