Despite recent increases Australian property prices are still cheap by global standards.
Chairman of accounting group, SMATS, Steve Douglas, says it is the smaller capital cities in particular which offer the best investment value in Australia.
He says when analysing it on a price per square metre basis, Australia is not expensive, compared with the value those who live in places like Hong Kong and Singapore.
“Cities like Perth and Adelaide are less than a quarter the price of Hong Kong and around a third of Singapore’s price per square metre,” Douglas says.
“Melbourne and Brisbane aren’t far behind, and even Sydney, which does have far higher median dwelling vales than the rest of the country, is a bargain compared to comparable business hubs like New York, Shanghai, Singapore and Hong Kong.”
In world rankings on a price per square metre basis for a CBD apartment, Sydney comes in 13th, Brisbane is 42, Melbourne, 51, Canberra, 70, Perth, 74 and Adelaide, 77.
By comparison the price per square metre in New York is $16,536 compared with Adelaide which is $6675.
Douglas says most economists in believe Australia’s current real estate market recovery had plenty of steam left in it yet.