ABCDiamond

Todays Courier Mail has an article on changes since the Labour party took power in QLD in 1989 up to today, and the comparison of average wages and average house prices was interesting.

The information was quoted from the Australian Bureau of Statistics.

QLD
1989
Average Household Income $ 250pw (it quoted $200-$299)
Median House Price (Brisbane) $112,000
therefore House costs 448 weeks wages

2004
Average Household Income $ 750pw (it quoted $700-$799)
Median House Price (Brisbane) $350,000
therefore House costs 467 weeks wages

This shows that relative property prices have only increased by 4.2% in terms of comparison of average household income, over a 15 year period.

jad n rich

The fun bit is finding a house for $350,000 we bid $900,000 for a house at auction today and the bloody thing went for $1,435,000. And it was only a demolisher Had a nice view tho

Quinkana

Well, if you pocketed extra $1,085,000, you could afford to get in the car and change your view every day.

ABCDiamond

I've got a spare one you can have for $300,000, (or $350,000 if you prefer) and only a couple of minutes from the local beach, plenty of shops, 50 mins drive from Brisbane CBD (peak run) etc etc.

bondipom

So does that mean they are only 4.2% overvalued?

ABCDiamond

either that or they were 4.2% undervalued in 1989

Actually Brisbane in 1989 was at a peak too, according to some figures that I have.

1983 - $55,500.00 = 0.73% change from previous year
1984 - $59,000.00 = 6.31% change from previous year
1985 - $61,600.00 = 4.41% change from previous year
1986 - $59,300.00 = -3.73% change from previous year
1987 - $62,300.00 = 5.06% change from previous year
1988 - $74,900.00 = 20.22% change from previous year
1989 - $94,000.00 = 25.50% change from previous year
1990 - $107,500.00 = 14.36% change from previous year
1991 - $114,000.00 = 6.05% change from previous year
1992 - $120,000.00 = 5.26% change from previous year
1993 - $124,500.00 = 3.75% change from previous year
1994 - $130,500.00 = 4.82% change from previous year
1995 - $134,000.00 = 2.68% change from previous year
1996 - $135,300.00 = 0.97% change from previous year
1997 - $140,500.00 = 3.84% change from previous year
1998 - $144,300.00 = 2.70% change from previous year
1999 - $144,000.00 = -0.21% change from previous year
2000 - $166,600.00 = 15.69% change from previous year
2001 - $200,000.00 = 20.05% change from previous year
2002 - $230,000.00 = 15.00% change from previous year

bondipom

If the cycle repeats itself (past performance nothing to do with future blah blah) then stagnant growth for 9 years to come.

ABCDiamond

It looks like that from previous trends. But there "may" be a few differences this time around with the population movement from the southern States, and increasing job opportunities in the area. I'll let you know in about 9 years

Don

I saw a very nice modern house on the sea at Mission Beach in 2000, looked like 3 beds in 1000sq m section, going for the equiv of GBP30K. Gone up, you reckon?

ABCDiamond

Was it any of these ones ?

Don

No - but I figure it went up by a factor of 3 in 5 years. Still, investing in Mission Beach is only for the cassowary...