Alarming new statistics herald bad news for aspiring homebuyers, with the port city reaching new global heights.
Australia’s housing market climbed 17.6% in the first nine months of 2021, with the country’s annual growth accelerating at rates not seen since June 1989.
New statistics from Oceania’s real estate database CoreLogic revealed that the national home value index rose 1.5% in September alone, placing Sydney comfortably in the top three of the most unaffordable cities in the world for real estate.
The median home price in Sydney has jumped nearly $ 300,000 over the past year to exceed $ 1.3 million for the first time.
The new milestone places the average home price over 14 times the country’s average full-time salary ($ 90,300).
“With home values ââgrowing much faster than household incomes, raising a deposit has become more difficult for most market cohorts, especially first-time buyers,” CoreLogic research director Tim said this week. Lawless.
âSydney is a great example where the median home value is now just over $ 1.3 million. In order to collect a 20% down payment, a typical Sydney home buyer would need around $ 262,300.
âExisting homeowners looking to upgrade, downsize, or relocate may be less affected, as they have benefited from the equity that has built up as home values ââhave increased. “
The new data comes after a recent Finder.com.au survey found that a majority of economists polled expected the Big Four banks to raise their standard off-cycle lending rates with the Reserve Bank in over the next 12 months.
“The slowdown in first-time buyers is visible in the loan data, where the number of first-time homeowner loans declined by -20.5% between January and July,” Lawless continued.
âOver the same period, the number of first-time home buyers taking out an investment home loan has increased by 45%, albeit from a low base, suggesting that more home buyers are ‘first-time home buyers choose to “invest in” as a means of gaining a foothold. in the door. “
By comparison, wages in Australia only increased 1.7% in 2021.
Globally, only Hong Kong and Vancouver have a higher cost of living, according to Demographia Housing Affordability Ratings. Sydney (third) and Melbourne (fifth) are the only two Australian cities on the list, with Auckland, New Zealand, fourth ahead of Toronto.
Cities with a price / income ratio above 5.1 are considered âextremely unaffordableâ.
Hong Kong recorded a staggering 20.7 price-to-income ratio, more than seven points higher than Vancouver’s 13.
Adelaide has become the 13th most unaffordable city in the world with a debt-to-income ratio of 7.7. Brisbane ranked 18th at 6.6, while Perth ranked 23rd with a debt-to-income ratio of 6.
Taking into account all of Australia’s metropolitan areas, the country has an overall score of 7.7, with the combined median price of properties in the capital rising to $ 751,014 in August.
This follows an 18.4 national increase in the median property price in the country last month, which brought median values ââacross the country to $ 666,514.