Rich skilled migrants push locals out of Australian property market

As per the research, these skilled immigrants are driving the rates of real estate in Australia to all new highs. The property rates have increased 5.5 times as compared with the average income. There has been an increase of median house rates by 168 percent in the year 2009 ($420,600) as compared to the year 1998-99 when the median house prices were $156,600.

Similarly, during the period of ten years from 1998-99 to 2008-09, the number of permanent skilled visa  increased by 187 percent, as the total skilled visas in the year 2009 were 115,000 as compared to only 40,000 visas issued in the year 1998-99.

Skilled migrants in Australia earn high pay packets, which are considered to be above-average salaries; hence, they do not shy away from paying hefty prices for buying houses in Australia. So, there is no second opinion about the fact that such skilled migrants, mainly from countries including UK, China and India are driving up prices of houses in Australia since the inflation in the property-price is driven by the highest bidder and not by the average buyer’s ability to pay.

However, one noteworthy point is that number of such skilled migrants is quite less in the total housing transactions in Australia. But, that does not deter the property prices of Australia from soaring to new highs, claimed the research by a famous publication, The Sunday Telegraph.

As per the findings of the research, the median property rates in Australia are 5.5 times the average (household) income and nearly eight times the income in Sydney. Compared with the other countries like UK and US, this ratio comes out to be five times the household income in UK and nearly 2.5 times the household income in United States.

And if the rate of skilled migration remains same, then it is almost certain that median house prices in Australia, particularly Sydney, are likely to keep going up, touching $1 million by the year 2020, reveals the research.

It may be worth mentioning that the government of Australia had decreased permanent skilled migration visas in the year 2009 to 115,000 as compared to 133,500, registering a cut of 14 percent.