Recently, a piece of news has tireded the hearts of all the babies who are struggling-
Prices in Sydney as a whole have risen another 10%, and now have a median of A $1.1 million.
Melbourne`s house prices have risen for the fourth year in a row, and the median has reached A $ eight hundred thousand.
I know what you`re trying to say is this-
Relax. In fact, you`re not the only one who can`t afford a house in Sydney and Melbourne.
Because, according to Demographia, the US urban planning research group, a comparison between the median income level of local households and the median level of house prices found that,
Sydney is the second most affordable city in the world.
Melbourne, Australia`s other big city, ranked sixth steadily.
Recently, Demographia, an American research group specializing in urban planning, recently released the 13th International House Price affordability Survey (International Housing Affordability Survey).
It analyzes and compares nine of the world`s largest countries-
Australia, Canada, Hong Kong, China, Ireland, Japan, New Zealand, Singapore, United Kingdom and United States
A total of 406 cities with a population of more than one million were counted in these countries.
There is a very important measure in this report, called the House Price affordability Index (Housing Affordability Rating).
What does house price affordability index mean?
The data is obtained through a comparison with the household income, which is the most intuitive data that the United Nations has recognized as the overall performance of the real estate market.
The algorithms are as follows:
Housing price affordability index = median house price / median annual household income
In fact, such an algorithm can be understood as follows:
It takes a couple of years for a family to buy a mid-price house?
The specific distribution of indices and ratings is as follows:
"affordable" when the value is less than or equal to 3.0
When the value is between 3.1 and 4.0, it is "mildly unaffordable"
"heavy unaffordable" when the value is between 4.1 and 5.0
When the value is 5.1 or above, it is "severely unaffordable"
For example, when we calculate Sydney`s house-to-house capacity index, a median of $107.7 million in Sydney`s home-house prices and a median annual income of $8.8 million in sydney will be used.
The result is 12.2.
It means that a middle-class Sydney family needs to save up to 12.2 years` wages without eating or drinking in order to afford a middle-priced house in Sydney.
If put in real life, not to eat or drink can be ignored, so the number of years is likely to extend to more than 20 years.
And when a family earns less than A $88,000 a year, they are less likely to want to buy a house in Sydney on their own salary.
There is such a gap between house prices and wages that buying a house has even become a luxury for an average family.
It is no exaggeration to classify it as "serious and unaffordable."
So, according to the latest survey by the Demongraphia, which of the nine countries is the most out of line for housing prices?
According to calculations, Hong Kong, China`s housing prices in this survey far higher than other countries and regions.
The median home price here is HK $five million four hundred and twenty two thousand, or A $one million seventy seven thousand, compared with a median household income of HK $ three hundred thousand, or A $50,999.
The price affordability index has reached 18. 1 per cent!
This is said to be 0.9% lower than the 19 calculated last year.
Next in second place was New Zealand, a good neighbor of Tuao, with a price-paying index of 10.0.
The third place is our dear Big to Australia, with a median of 6.6% of the country`s housing price affordability index.
Congratulations, Tuo!
Although we live in the primitive, the city is also not developed,
But our house prices are much higher than those of other developed countries.
In addition to the real estate purchasing capacity index of the whole country, Demongraphia also analyzed the different real estate markets of these nine countries and regions one by one.
Of a total of 406 real estate markets from different countries and regions, Sydney and Melbourne are among the 10 most "affordable" cities, with Los Angeles and San Francisco all behind the big cities in the United States.
Without a doubt, Hong Kong, China, topped the list with a high score of 18.1.
Sydney came in second with a good score of 12.2.
Canada`s Vancouver ranked third, scoring 11.8.
New Zealand`s Auckland is fourth, with a 10. 5% purchasing power index.
San Jose, California`s third-largest city, ranked fifth, with a purchasing capacity index of 9.6.
Melbourne, the second-largest city in Turkey and Australia, ranked sixth, with a purchasing capacity index of 9.5.
In addition, Australia`s other major cities Adelaide, Brisbane and Perth also ranked in the top 20.
The top ten "affordable" cities on the list are as follows: their purchasing ability index is below 3.0
But the editor suggests that you don`t get excited, just look around, because the ten cities are all in the United states.
Why is there such a wide gap between house prices and personal income in Australia as far away as the southern hemisphere?
The Demographia analysis said this was due to Australia`s urban containment policy, (urban containment policies).
The aim of the policy is to limit the outward expansion of cities and encourage density within existing areas of residence, rather than opening up new areas (often referred to as "greenfields").
This causes the city`s land price to soar ceaselessly, therefore the house price also rises accordingly.
Australia`s pre-policy house prices have contrasted sharply with current prices, the report said.
As early as 1980, Australia`s home-buying capacity index was less than 3.0.
It may be a bit cold to see the house prices in Australia, but I don`t know if there`s any impression.
Last year Sydney had the impression of a Chinese uncle in Melbourne who had been reported.
He began to come to Australia in the 1990s and bought five homes just by washing dishes in a restaurant and saving money.
But today, more than a dozen years later, most people may have seen the story as something of a fantasy.
Fled China`s haze. Escaped the domestic congestion. Can not escape is the same as the domestic housing prices.
My dear friend of Sydney Melbourne. Hard work for 20 years, maybe just to buy a set of favorite house, ah.
But then again, although house prices seem out of reach, we still have to be down-to-earth, work hard, and earn money to buy a house!
