Posted: 28 July, 2015
A definitive guide and it's not what you'd expect
Sydney has been acclaimed as one of the world’s most livable cities, but news that the median house price has hit $1 million has many gasping.
The median price of a three-bedroom house stands at $929,000 in Sydney’s inner and surrounding suburbs, just below the city’s overall average house price of $1,000,616 and there are fears much of the city is now out of reach for the average home buyer.
So how do we fit in the affordability stakes against major cities, such as Tokyo, London, New York, Paris and Hong Kong?
Even though the median house price is daunting, when you look at the average-square-metre comparison, Sydney isn’t looking too shabby.
"You have to compare the cities in terms of price per square metre, and homes in Hong Kong are three to four times the price of Sydney, in London double the price, and while New York and Singapore are about the same price per square metre, their apartments are much bigger, so actual homes are more expensive in both places, too,” says Tony Crabb national head of research for Savills a global Real Estate services provider.
So what options are we looking at?
Well, The Sutherland Shire, between Botany Bay and Port Hacking might be out of your price range.
In the June quarter, Sydney’s south leads the city’s strongest house price growth. The median house price in the Shire jumped 12 per cent to $1.12 million according to Domain Group.
The upper North Shore followed with a median rise of 11.4 per cent to $1.37 million.
So what’s caused this surge in prices?
The president of the Real Estate Institute of NSW, Malcolm Gunning, said the jump to a figure of over $1 million was driven by “bottom up” price growth in Sydney’s south and west.
"We have seen significant growth in Sydney at the lower end of the scale, which has in turn driven the house price over $1 million," he said.
There’s good news though, Mr Gunning added that price growth in the inner city was starting to level out.
The median in the city and east rose just 4.4 per cent in the quarter, to $1.86 million.
In the inner west the median rose 5.6 per cent to $1.4 million according to Domain Group.
Your best option that’s not too far out?
Homebuyers seeking affordable homes within easy commute of the Sydney CBD should look to suburbs along the Bankstown train line.
Bankstown, Canterbury and Parramatta are a gold-mine for Sydney’s cheapest homes within just 20 kilometres of the city centre.