The continued increase in dwelling values has led to a substantial reduction of sales below $400,000 over the past decade, reports CoreLogic.

In the capital cities, 28.4% of units and 16.8% of houses sold for under $400,000 in the year to June 2017. In the previous year, these figures were 29.6% for units and 19% for houses, a noticeable decline in properties under $400k. Ten years ago, 66.3% of units and 53.1% of house sales were under the $400,000 mark.

On a national level, 37.3% of units and 31.2% of houses sold for under $400,000 in the year to June 2017. In the previous year, these figures were 38.6% for units and 32.8% for houses. Ten years ago, 68.9% of units and 62.4% of house sales were under the $400,000 mark.

Brisbane continues to live up to its ‘affordable city’ title, with 47% of unit, and 26% of houses sold for below $400,000. In comparison for the same period, sales under $400,000 in Sydney units were only 7.4%, and even lower in houses at 3.1%.

In Sydney and Canberra, less than 3.5% of all house sales were below $400,000 in the 12 months to June 2017, compared to 35.5% (Sydney) and 40% (Canberra) ten years ago.

On the flip side, as to be expected, properties selling for at least $1 million has significantly increased over recent years. The Federal Government attempted to address housing affordability in this year’s budget, and as anticipated, supply and demand need to be worked on as these are the market drivers. To increase supply would potentially reduce prices, but the employment opportunity and infrastructure would need to accompany these plans.