A little worker’s cottage in Coppin Street, Richmond, just sold for $1 million. It’s a pretty good indication that there is a massive bubble in the Australian residential market at the moment. Ponder this:
The house sold for $1 million at auction on Saturday, almost double the $533,000 its owners paid just five years ago and more than four times the $218,000 it sold for in 1996.
The housing market in Australia escaped the worst of the Global Financial Crisis, but it is hard to imagine that we’ll be that lucky forever — with such inflated housing prices, how can mere mortals possibly expect to be able to pay back such huge loans within 30 odd years?