Australia’s property market more affordable than New Zealand

By |
You may find it hard to believe, but Australian properties are in fact more affordable than their Kiwi counterparts.

According to the latest report from Knight Frank Global Opportunities Index, Australia came in fifth in the most unaffordable scale, well behind Belgium, which is deemed most overvalued, Norway, Canada and New Zealand.

The report deems a property market to be correctly valued when local incomes are high enough to buy or rent an average property, and when average house prices are running close to long-term average levels. 

Knight Frank’s Michelle Ciesielski said that Australia recorded slightly over 20% in the price-to-income ratio while the price-to-rent ratio almost reached 40%.

The market’s price growth reflected an increase in market confidence – thanks to low interest rates, more liquid debt markets, and a strong rebound in the share market which contributed to a growing pool of prestige residential buyers.

Vendor discounting had lessened as confidence returned which, in turn, contributed to increasing prices, Ciesielski said.

There had also been an increase in demand from Asian buyers for prestige residential properties, which was helping to fuel prices, she added.

“With restrictions on property purchases across much of Asia now in place, cashed up investors are likely to look further afield, and Asian cross-border investors continue to favour traditional or ‘safe haven’  city markets, like Sydney and Melbourne.”

The report also identified Australia as one of the countries where prices were still rising and, thus, most at risk of a price correction.

However, Ciesielski said that while the country’s mainstream property prices had witnessed growth over the last quarter, the growth had been much softer than in the previous twelve months.


With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : reservoir , berala , mt lawley , cardiff south , windale

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here