‘Housing shrinkflation’ (price per square metre) is an under-reported element of how expensive real estate has gotten in Australia; not only paying more, but getting less

Source: NoLeafClover777

7 Comments

  1. NoLeafClover777 on

    To add insult to injury to rising house price issues, one of the aspects that’s often not talked about is not simply just the price of housing in aggregate, but the price of property per square metre of land size.

    For example, in Sydney these days you’re not only paying $1.5 million median price for a house, you’re paying $1.5 million median price often for a 400square metre (or less) block, particularly in many of the newer cookie-cutter housing estates being rolled out on the city fringes, as opposed to 500+ not that long ago.

    And we can see that property land sizes were already trending significantly downwards for the past ~10 years (haven’t been able to find any newer data since end of 2021, but no reason to assume the trend didn’t continue):

    https://preview.redd.it/fjeoa5n7yhqd1.jpeg?width=1600&format=pjpg&auto=webp&s=d4e6425080a0801c4d85329f79e2df7e92236932

    Paying more for less isn’t only limited to grocery suppliers… fun stuff, huh?

  2. AlternativeCurve8363 on

    House size is a tricky policy area. Lots of Australian houses seem to have too much space, particularly where household size drops after kids leave home.

    I live in a rare slice of medium density in an inner suburb largely dominated by retirees in massive houses. Although it takes ages to walk anywhere because of the massive lot sizes, and the area feels really dead because of the lack of families, it makes no sense for the current residents to sell given the principal residence land tax exemption, principal residence pension asset test exemption, stamp duty, CGT etc. As a result, those houses don’t seem to be quickly passed on to families or prospective parents, which is probably negatively affecting people who are trying to or want to raise kids.

  3. nimbostratacumulus on

    And yet, our stupid media for years portrays it as Australians actually in preference and wanting smaller blocks. Um, no, it’s all we can afford and what’s available.

  4. SiameseChihuahua on

    Feel the multiculturalism, you racists! Now stick your arm out your window and fi5t your neighbour! Oh,yeah, feel the dense urban development as it festers around your armpit. Don’t like it? Racist!!!!!!!!!!!!!!!!!!!

    I’ll be a bigot with a garden. Feel dumb now?

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