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Daily Mail
27-05-2025
- Business
- Daily Mail
Revealed: The insane salary Aussies now need to buy a home in Sydney
Sydneysiders hoping to buy a home have been given more bad news with a new report stating the city's median house price is now worth 13 times the average salary. The Australian Property Institute's (API) Valuation Report, released on Tuesday, painted a grim outlook for those seeking to step onto the property ladder in the Harbour City. Fifty years ago, a median priced home in Australia's most populated city cost just 4.2 times the average worker's salary. In 1995, it had only risen to 5.8 times their income. But by 2015, that same median priced home was worth 11.1 times an average income for Sydneysiders. The average Australian salary last year was just short of $103,000, according to the Australian Bureau of Statistics, while a median home price is nearly $1.34million. The new data equates to a median home costing more than 13 times the average income. API chief executive Amelia Hodge said housing affordability is at a 50-year low. 'Australia has one of the fastest growing populations in the OECD, fuelled by record immigration, yet housing for younger Australians is more unaffordable than ever,' she said. Experts believe high levels of inflation and a housing shortage are to blame. Meanwhile, in Melbourne, the median house price was 8.4 times the average salary, while in Canberra, this figure was at 9.0. Darwin had the most affordable houses, according to the report, with prices at 5.8 times the average salary. 'Despite the vast bulk of immigrants surging into Sydney and Melbourne, the results suggest the impact of migration on Australian domestic property prices may not be as pronounced as other unseen factors,' Ms Hodge said. Between 2005 and 2024, house prices rose by a whopping 171 per cent in Sydney, with other capital cities seeing similar increases. Melbourne's house prices rose by 169 per cent in the two decades, while Adelaide saw an increase of 175 per cent. Meanwhile, in the Sunshine State, median homes in Brisbane were worth 2.9 times the average income in 1975. Now they're worth roughly 8.3 times the average salary.
Yahoo
27-05-2025
- Business
- Yahoo
Young Aussie reveals brutal property reality facing generation: 'Win the lottery'
A Sydney man has laid bare just how out of reach homeownership is for many young Australians right now. Skyrocketing property prices, coupled with the high cost of living and lagging wages, are making it more difficult for young people to buy their first homes. The 29-year-old Sydney man was stopped in the street by Coposit, an app that helps people buy their first homes. He was asked about his plans to buy property in the future and shared that it wasn't something he could even entertain right now. 'I just can't dream of it,' he said. 'Expenses are too high. I can't even afford to rent.' RELATED New Australian property data reveals how much you need to earn to buy a home compared to 1975 ATO warning for 2.6 million small business owners as areas of concern revealed: 'Will face consequences' $3 million superannuation tax change sparks property warning as 'panic' selling begins The man shared he had between $10,000 to $15,000 in savings, but said this was for an emergency. 'If you are asking about buying a new house, that is just a dream. I don't know how, maybe if I am lucky enough, I can win the lottery or something like that,' he said. The man said he thought other people his age were in the same position as him. 'I'm watching everyone struggling nowadays. Only the people who are already rich or already have properties, those ones can [buy],' he said. Owning a home in Sydney is now three times harder than it was 50 years ago, a new report by the Australian Property Institute found. Sydney homebuyers now need 13 times the average annual income to purchase a home. That's up from 4.2 times back in 1975. In Melbourne, the ratio has more than doubled from 3.5 times to 8.4 times, while in Brisbane it has almost tripled from 2.9 times to 8.3 times. Nationally, the income-to-house-price ratio has surged from 3.4 to 8.1. The median value of all houses and units in greater Sydney was $1,195,000 in April, according to CoreLogic. National values are sitting at around $825,000. Australian home ownership rates have dropped from 71.4 per cent to 66.2 per cent in 25 years, according to the Australian Bureau of Statistics. There has also been a significant drop in home ownership among younger Aussies. More than half of 25 to 29-year-old households were homeowners in the 1980s, but this dropped to less than 40 per cent in the 2021 census. The Coposit video has racked up tens of thousands of views online, with many people echoing the man's view about how difficult it is to buy a home these days. 'Australian dream is finished permanently,' one person said. 'Sydney is very expensive. Possible to save but take you years,' another said. 'Just keep saving for 10 years, you might have enough for a deposit,' another added. The Australian government plans to allow all Australian first-home buyers to purchase a home with a 5 per cent deposit, avoiding lenders mortgage insurance. It also promised to put $10 billion towards building up to 100,000 homes exclusively for first-home while retrieving data Sign in to access your portfolio Error while retrieving data
9 News
27-05-2025
- Business
- 9 News
Jump in value of farmland beats all other Australian property: report
Your web browser is no longer supported. To improve your experience update it here Sydney and Melbourne blue-chip suburbs have been beaten when it comes to increases in land values during the past two decades, new research has found. The Australian Property Institute's (API) inaugural valuation report shows that over the past 20 years, farmland rose in value more than any other type of property. The value of agricultural land has jumped by 256 per cent since 2005, compared with 154 per cent for housing during the period. Australian farmland has recorded the biggest increase in property value during the past 20 years, a new study found. (AP) The value of industrial property, such as warehouses and factories, increased by 164 per cent, while the value of commercial property, including shops and offices, recorded a 143 per cent rise. The big gain for farmland was powered by high commodity prices, favourable weather conditions and, until recently, low interest rates. The report found the biggest hike was in Victoria's Wimmera region, where land values have bounded by 802 per cent, driven by rising demand for renewable energy. Grain and sheep farms have historically been the backbone of the area's economy. API chief executive Amelia Hodge said farmland bettering capital city property values was a shock for some people. But she also warned the push for renewable energy put pressure on land in rural areas. "Our economy is being transformed by the structural shift from fossil fuels to renewables, which will benefit the planet, but in some areas threatens the ongoing viability of scarce agricultural land, to be replaced by vast new solar energy farms." agriculture Farming Australia finance CONTACT US Auto news: Google Gemini AI assistant coming to new cars in 2025.
Yahoo
26-05-2025
- Business
- Yahoo
Jaw-dropping income you now need to buy an Aussie home compared to 50 years ago
New figures have revealed how much of your income you would need to buy a home in Australia, and it has shot up dramatically over the last five decades. While older Australians might tell you they had to dig deep to get the keys to their castle, the Australian Property Institute's (API) data reveals it's never been harder than right now to get on the property ladder. Nationally, you would need 8.1 times the average annual income (which is $102,742) to afford an average home. Back in 1975, you only needed 3.4 times the average salary. 'Looking at the data, housing affordability is now at a 50-year low, driven by incomes failing to grow above inflation and a corresponding shortage of new homes being built,' API CEO Amelia Hodge said. 19 Aussie lenders called out for not passing on interest rate cut as $76 million issue exposed $3 million superannuation tax change sparks property warning as 'panic' selling begins ATO warning ahead of $1,288 cost-of-living cash boost: 'Shooting yourself in the foot' Unsurprisingly, Sydney topped the list for how much money you'd need if you wanted to jump onto the property ladder. According to the Australian Property Institute Valuation Report, you'd need 13 times the average salary to buy a home in the harbour city. What's wild is that 50 years ago, you only needed 4.2 times the average salary to get a slice of the Australian just 20 years, the price of the average Sydney home has shot up 171 per cent, and it's a similar story right across the country. Melbourne's salary-to-home value ratio went from 3.5 in 1975 to 8.4 in 2024. Brisbane went from 2.9 to just above the national average at 8.3. The other capitals have experienced rapid growth in just the last two decades, with Canberra's average home price shooting up 148 per cent, Hobart's is up 172 per cent, Perth's is up 123 per cent, Adelaide's is up 175 per cent, and Darwin's is up 102 per cent. This widening income-to-home price ratio has been driven both by hot demand in the property market as well as stagnating wages due to low productivity and economic growth. According to Ray White, Aussie house prices jumped by $46,625 from $871,671 to $918,296 in the 12 months to April 2025. Conversely, the wage price index in March 2024 was 4 per cent. Fast-forward to the March quarter this year and it's fallen to 3.4 per cent. Understandably, many have all but given up hope of owning their own home. A poll of more than 2,600 Yahoo Finance readers found 63 per cent feel property ownership will never be within reach for them. While there are several state and federal government initiatives aimed at getting first-home buyers into the market, they could soon be even more priced out of their desired suburbs. The Reserve Bank of Australia (RBA) recently cut interest rates for a second time this year. The RBA is tipped to potentially deliver several more reductions to the official cash rate in the second half of 2025. It's welcome news for millions of people who already own a home, however, many fear it will likely put upward pressure on home prices. This means that Aussies who might have been saving for years to get enough for a deposit could be priced out in the coming months. Melbourne buyer's agent Emily Wallace told Yahoo Finance that people were already trying to jump into the market to avoid paying tens of thousands of dollars more in a few months. "People who have financial literacy understand it and they're acting," she said. "By the time that reaches mass media, that might be two or three months down the track, but actually the best time is probably right now." Ray White chief economist Nerida Conisbee warned that price growth will be "particularly pronounced" in cities that have already shown strong growth like Perth, Adelaide and Brisbane. "However, markets that are currently much slower, such as Sydney and Melbourne have historically been far more sensitive to rate cuts. The cuts today are likely to boost these markets," she added. Well, it's hard to say because that answer depends on a lot of factors like future interest rate cuts, whether supply is boosted, and how the market responds to certain economic elements. Domain data revealed that if the official cash rate fell by 1.5 per cent by early 2026, the median house price for the combined capitals could jump by 12 per cent to $1.32 million. That translates to around $141,000 extra as a result of the falling cash rate, which means you'd need to find an extra $14,100 for your 10 per cent deposit or $28,200 for a 20 per cent deposit. The current cash rate is currently at 3.85 per cent, and started the year at 4.35 per cent. Some experts have forecasted it to go as low as 2.60 per cent by February. How much would that mean for your city? If this happens, median house prices are expected to reach: Sydney: $1.9 million Melbourne: $1.16 million Brisbane: $1.14 million Adelaide: $1.12 million Canberra: $1.17 million Perth: $1.02 million Hobart: $795,286 Darwin: $738,272Error while retrieving data Sign in to access your portfolio Error while retrieving data
