How much it now costs to buy a typical home in each major city as prices surge and the Aussie dream dies
By Zak Wheeler For Daily Mail Australia
02:50 24 Jan 2024, updated 03:02 24 Jan 2024
The dream of owning a home is drifting ever further out of reach for most Aussies as property prices continue to skyrocket.
Sydney‘s median house prices are the highest in the country and have recently hit a new record with the price now at $1.6million.
The figure is only expected to continue going up as interest rates and taxes are looking to receive a cut which will incentivise more buyers.
The median – or middle – salary stood at $67,600 in August with this figure covering everyone working full-time or part-time.
Someone on this income with no children buying on their own would only be able to borrow $324,800, a RateCity analysis for Daily Mail Australia showed.
Prices in Sydney have risen by $6,000 since the previous peak in the March quarter of 2022, but this trend is expected to slow in 2024.
Anyone looking to enter the property market is likely to need at least $1,595,310 according to the latest Domain House Price Report which was released on Thursday.
From December 2022 to December 2023 the average price of a house has risen by 10.6 per cent and the price of units by 2 per cent.
The median price of a home in Sydney is now roughly twice that of a unit, with the former benefiting from house scarcity and cashed-up buyers.
‘These are buyers that are active, less sensitive to interest rates, they’re supported by family members, family wealth, or they are owner-occupiers that are well established, and they are less sensitive to the cost of debt,’ Domain chief of research and economics Dr Nicola Powell told the Sydney Morning Herald.
Every region of the city is more expensive to buy in today than they were one year ago, except for units on the Central Coast which are down 7.2 per cent.
The suburbs that received the biggest boosts include the Ryde area, the inner west, northern beaches and the north shore.
Areas to the west of the CBD like Baulkham Hills, Hawkesbury, Blacktown, the outer south-west and Parramatta all experienced a decline in unit prices in the December quarter of 2023.
BresicWhitney chief executive Thomas McGlynn told the publication that this downward trend was likely caused by supply exceeding demand as investors sell and families suffer mortgage pain.
The areas where there were a lack of listings however saw the best growth, according to Westpac senior economist Matthew Hassan, who expects prices to continue going up.
An insurgence of migration and general population growth has also seen rentals become more limited which in turn has boosted the prices tenants are willing to pay.
This, combined with proposed interest rate and tax cuts, could cause another unexpected boost soon, according to Westpac senior economist Matthew Hassan.
‘Tax relief is coming through and there would be some other policies waiting in the wings because state and federal governments are keen for more new houses to be built. We do expect prices to rise, but something has to happen to really kick it along,’ he told the publication.
Dr Powell predicted a 7 or 9 per cent increase in Sydney home prices should stage three tax cuts put more money into buyers’ pockets.
But as prices rise, Mr Hassan said the ‘$1 million question’ would be if people would begin migrating out of Sydney as the city’s affordability worsens.
Diana Batkin, 50, works for a medical company has been trying to buy a unit as an investment property for more than a year but has struggled to enter the market.
Ms Batkin remains hopeful that even though interest rates remain high that she will be able to enter the ‘strong and competitive market’ soon.