It is cheaper to build a new property than to buy an existing one. (photo of property website realestate)
Sydney buyers will be more than A $ one hundred thousand cheaper than buying off-the-shelf properties if they build their own dream houses.
Building analysis data show that in the past month, new properties in the same area have been on average 13.9 percent cheaper than buying properties already built, according to real estate website realestate.
Buyers, for example, can buy properties already built for A $ nine hundred thousand, but only A $ seven hundred and seventy five thousand if they buy land for a similar property.
There is such a price gap between the two, one of the major reasons is that there is more land for construction properties, and there is little competition for new houses.
It is cheaper to build a new property than to buy an existing one. (photo of property website realestate)
In fact, not only Sydney, but also in Australia, there is a similar situation. HouseandLand.com.au, an online platform, found that across Australia, new properties cost an average of A $361096, compared with A $419400 for those built. These include new properties signed by owners and developers, or owners who manage construction projects themselves, but do not include those that overthrow old houses and rebuild them.
Houseandland`s director, Ross (Dean Kyros), said the price gap was more open in urban areas and generally far away from CBD. He said buyers would be limited in time if they wanted to buy a property they had already built, because if they saw the right property but did not sell it in time, they were likely to be snapped up by other buyers. But if it`s built, it doesn`t have to compete with others, it doesn`t have to start quickly, and it can build its own ideal house.
He pointed out that the biggest obstacle to building his own house was finding open space, but the challenge was much smaller than owning a ready-made property, and it was easier to find another space than to find another suitable property.
Rilden (Tim Reardon), chief economist at (Housing Industry Association), the real estate association, said there were many factors that affected the cost of housing construction, but the biggest factor was location. Building new properties in the outer city is much cheaper than it is in the inner city, where there is not much open space available, especially in the vicinity of CBD. Even in the same town, old houses are usually closer to schools, shops and traffic points than new properties.
