Rising house prices in Australia have some people worried the market could be over-inflated and the nation is in for a price correction.
In the past 12 months Australia’s housing prices have risen 11 per cent and are up 16 per cent since the slump in May 2012.
According to HSBC that growth in housing prices does not a bubble make, with the average yearly growth sitting at 4.5 per cent over the past five years.
“This is the same as their average over the past decade,” HSBC chief economist Paul Bloxham said.
“This rate of growth has been in line with growth in household disposable incomes over that time.
“Bottom line is: housing prices are now rising after having fallen – so the upswing in this cycle looks quite normal at this stage.”
In terms of housing supply and demand, Bloxham said Australia has an undersupply of housing, which is in part being driven by population growth.
“New population demand has been for around 825,000 dwellings but only 760,000 houses have been built in the past five years,” he said.
“Australia has an undersupply of housing, not an oversupply.”
According to quarterly data from Realestate.com.au the suburbs with the highest amount of buyer activity are spread across New South Wales, Victoria, South Australia and Queensland.
The real estate website has analysed the number of properties available in each suburb and the corresponding buyer demand to find the top ten areas with the most amount of people looking per listing for the first quarter of 2014.
Determining demand, realestate.com.au took the average number of listings in each suburb over the course of three months and compared it to the number of clicks each property received to determine the top ten. It has also averaged out the same activity over a 12 month period.
While this isn’t conclusive it is a good indicator of supply and demand in each suburb.
New South Wales has four suburbs in the top ten, with Victoria following closely behind with three areas making the list.
Located on Sydney's northern Beaches, Balgowlah topped realestate.com.au's list for the highest level of buyer demand in the country.
According to the website there was on average 98 people looking per property listing, compared to the NSW average of 24 people per property (over a 52 week period).
With a median property price of $1,340,000, the Melbourne suburb of Albert Park has recorded high buyer demand.
According to realestate.com.au over the past 52 weeks 101 people were looking per property listing in the area, which is almost four times above Victoria's average of 22 people looking per property.
Albert Park was also named one of the country's richest suburbs.
Located about 4 kilometres from Adelaide's CBD, Norwood has a median property price of $723,000.
According to Realestate.com.au the average amount of people looking in the area per property listed over the past 52 weeks was 118.
South Australia's average over the same period was 32 people looking per property listed.
The Sydney suburb of Frenchs Forest recorded high buyer demand levels in the first 2014 quarter, realestate.com.au said.
With a median house price of $945,000, over the past 52 weeks the realestate website reports there has been an average of 101 people looking per property listed.
In Sydney's north-west, Cherrybrook has a median property price of $881,000.
Over the last year the suburb had an average of 100 people looking per listed property in the suburb.
Located south east of Adelaide's CBD on the waterfront, Brighton in South Australia has a median house price of $551,000.
Over the last 12 months the website recorded an average of 94 people looking per listing in the suburb, about three times the state average of 32 people looking per listing.
According to realestate.com.au the outer Melbourne suburb has a median property price of $976,000.
Over the last 12 months the average amount of people looking at each property listed for sale online was 106.
With an average of 103 people looking per listing over the past 52 weeks, Realestate.com.au ranked Queensland's Holland Park at number eight in terms of Australia's suburbs with highest buyer demand.
Queensland's state average is 13 people looking per property listing.
The Brisbane suburb has a median house price of $535,000.
Just outside Melbourne's CBD, Ormond has a median house price of $983,000.
Realestate.com.au said the suburb has high market demand with 99 people looking per property listed, on average over the past 12 months.
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