When comparing House prices between Australia and the UK, the figures can be looked at in many different ways, to come up with differing results. For example, if we compare the average house price to the overall average wage of all people in the country, we end up with a figure that really means very little, as most people buying a house would be full time wage earners, and not the average part time wage earner.
We could therefore compare the property prices to full time earners average incomes, and end up with a more accurate idea of the comparison.
United Kingdom
England and Wales
Total Annual Combined Income of two full time workers = £62,646 (Note 1)
Average property price = £224,064 (Note 2)
A multiple of 3.577
London
Total Annual Combined Income of two full time workers = £65,208
Average property price = £260,764 (Note 2)
A multiple of 3.998
Australia
The multiples taken from each state are as follows:
Melbourne, Victoria (Nov 2008)
Male weekly Income $1,266.40
Female weekly Income $1,039.60
Total Annual Combined Income = $119,912 (Note 4)
Median Established House Price = $385,000 (Note 5)
A multiple of 3.211
Sydney, New South Wales (Nov 2008)
Male weekly Income $1,327.10 (Note 4)
Female weekly Income $1,072.70
Total Annual Combined Income = $124,799 (Note 4)
Median Established House Price = $465,500 (Note 5)
A multiple of 3.73
Brisbane, Queensland (Nov 2008)
Male weekly Income
Female weekly Income
Total Annual Combined Income = $
Median Established House Price = $
A multiple of
Sources of the data used above.
Note 1: According to the National Statistics’ Annual Survey of Hours and Earnings, the UK “mean” gross annual earnings in 2008 for full-time employees, was £31,323 (Median was £25,123)
http://news.bbc.co.uk/2/hi/uk_news/magazine/8151355.stm
Note 2: The UK Average house price was £224,064 according to the BBC.
http://news.bbc.co.uk/2/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm
Note 3: The results of the 2009 ASHE show that median weekly pay for full-time employees in London were £627 (£32,604 pa)
http://www.statistics.gov.uk/cci/nugget.asp?id=285
Note 4: Australian data comes from the Australian Bureau of Statistics
http://www.abs.gov.au
Note 5: Australia Property prices come from the Australian Bureau of Statistics report 6416.0 House Price Indexes: Eight Capital Cities
Tables 7 and 8.
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