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Canberra Times
3 days ago
- Business
- Canberra Times
Can you nab a home alone in Australia's priciest city? It's not easy, but we've found some buys
Buying your first home in Sydney has always been hard. Now, it's near-impossible - especially if you're doing it on your own. The Sydney lifestyle is attractive but it's difficult to get a foot in the property door if you are single. Pic: Shutterstock With apartments regularly listed for over $1 million and houses well beyond that, the average first-home buyer is increasingly shut out of the market. With a changing work landscape where many employers are requiring staff back in the office, living far from the CBD is no longer the easy fix. Sydney is one of the world's most expensive property markets. A Demographia study last year ranked it the second-least affordable city globally, second only to Hong Kong. According to recent Cotality data, nearly two-thirds of Sydney's housing stock is priced above $1 million (a record-high 64.4 per cent). "This is unsurprising given the median value of all houses and units in greater Sydney was $1.195 million in April," said Head of Research at Cotality, Eliza Owen. "Even for those with a budget of $1 million, the kind of property available in Sydney is generally smaller, and further afield than a decade ago." Dual incomes the unspoken standard Australia's housing market is leaving solo buyers behind. Wage growth hasn't kept up with surging house prices, meaning a single income rarely stretches far enough. "Your experience as a first-home buyer is really determined by where in the country you're trying to buy," said Sarah Megginson, personal finance expert at Finder. "If you want to buy your first home in Sydney on your own, you need a very high income or help with the deposit - or potentially both. There's no getting around this. "Even a small apartment is going to set you back around $600-700,000. It's completely unaffordable for first-time buyers, even with benefits like stamp duty exemptions and LMI waivers." The crippling state of the market is also changing the demographics historically able to buy property. "The rate of home ownership has gradually declined over time, particularly among younger, low-income households where income cannot keep pace with growth," said Ms Owen. "The average age of first-home buyers has increased, and increasingly wealthy households are stuck renting for longer, which increases competition for low-income, renting households." "These suburbs are definitely areas that appeal to first-time buyers," says Ray White agent Hayden Sacilotto of the St George suburbs of Mortdale, Penshurst, Allawah and Panania. Pic: Supplied Hayden Sacilotto, Principal at Ray White Georges River, sees this struggle play out regularly. "It is almost impossible for first-home buyers on a single income to purchase in most areas of Sydney, especially with reasonable proximity to the city," he said. "My office will sell 150 properties a year and it is rare to see a first-home buyer - single or couple - purchase a home in the St George region without the help of Mum and Dad. "The final stages of negotiations tend to revolve around borrowing money from parents to push them across the line." The borrowing power battle Recent Finder research using ABS data shows that the average first-home buyer loan is about $542,000. That's a huge leap to Sydney's median property value of almost $1.2 million, severely restricting a first timer's buying options. "As a first-home buyer, the major pain points you face are saving up the massive deposit, and affording the sky-high repayments each month," said Ms Megginson. Firsthome buyers are borrowing big in Australia. Source: Finder "We've had two rate cuts this year with more predicted, and that's helpful, but the average first home buyer loan size in Australia is around $542,000, which is a weekly repayment of around $800 - with council rates, insurance and potentially strata fees, you're looking at $1,000 per week at a minimum, before you've even turned on the lights." Canstar research is even bleaker. Recent data shows that if you're on a single income of $100,000 a year you could afford to borrow $338,000. With a 20 per cent deposit, that would mean you could buy a property worth about $422,000. Read: not in Sydney. Essentially, solo buyers adamant on purchasing in Sydney are often left with three options: earn a very high income, get family support, or take on a housemate to help cover costs. The borrowing capacity of single-income households lags behind joint-income borrowers. Source: Canstar Where can single-income first-timers buy under $700K? If you earn the average Aussie salary of $103,000 and don't have family help, but want a two-bed apartment with CBD accessibility, what options do you have? It's a question doing the rounds on Reddit's r/AusPropertyChat, where a hopeful home owner asked for suburb suggestions for a principal place of residence. They requested transport links within 40 minutes of the CBD and amenities like shops and gyms on a $600-$700,000 budget. The community came through, naming areas that barely just fit the brief. Inner southwest: Campsie, Canterbury and surrounds With the City and Southwest Metro line set to open in 2026, these suburbs will have trains every four minutes into the CBD. "I'd check out Campsie, Canterbury and surrounds. Border of inner-west. Train stations and a quick ride into the CBD. Good luck!," said one Redditor. "Lovely neighbourhood!," said another of Campsie, noting that it will only be 18 minutes to Central on the metro. Mr Sacilotto agrees these inner southwestern areas are on the rise. "I definitely think these areas will gentrify as new transport lines are built and become operational," he said. "But watch out for complexes with large strata plans - they can have high insurance premiums and risk of ongoing special levies." St George region: Mortdale, Penshurst, Allawah, Panania Users praised these suburbs for their neighbourhood vibe, local amenities, and sub-40-minute train access to the city. Mr Sacilotto says the appeal is real. "These suburbs are definitely areas that appeal to first-time buyers. Transport, education, proximity to the city and the general feel of these suburbs make them highly desirable," he said. "I live in Mortdale myself and as a young couple, my wife and I love the fact that we have the shops on our doorstep." But affordability is already slipping. "These areas are changing as things gentrify and new complexes have been developed over the last five years, which has further caused house prices to surge," said Mr Sacilotto. "New builds that once sold in the $700,000s are now $920,000 to over $1 million," he said. "As the prices of these new units have risen, older '60s and '70s units followed suit." Mid-western Sydney: Meadowbank, West Ryde, Parramatta Redditors also mentioned these northwest and western areas, though Mr Sacilotto urges caution with particular development. "There is an opportunity there, but I would be extremely wary of more modern builds. Often developers initially keep strata rates low to entice buyers, only for owners to be hit with larger strata fees in the near-distant future." One Redditor highlights the side of Meadowbank with older apartment buildings, around Bank Street and Meadow Crescent. "It's a good spot with a 25 to 30-minute train into the city and it's close to the river with walking and cycling paths, and big parks." Advice for solo buyers The so-called 'singles tax' feels like everything costs more - especially a home. But Mr Sacilotto believes this pressure is felt by all first-home buyers. "There is no easy way around it and I don't believe any initiative from the government will change this dramatically. Whether buying solo or with family help, the market's tough," he said. "A good piece of advice would be to find yourself a real estate agent in the areas you prefer who will be willing to help you and also use a broker to secure your finances - don't go to a bank directly." Ms Megginson recommends thinking creatively. "If owning a home is a goal for you and you prefer to stay in Sydney, it might be worth zooming out a little to consider a range of options," she said.
Daily Mail
18-05-2025
- Business
- Daily Mail
Insane global ranking that says it all about buying a home in Australia
Five Australian cities have been included in the list of the top 15 most unaffordable places in the world to buy a home. The 2025 Demographia International Housing Affordability report, released this week, revealed Sydney, Melbourne, Brisbane, Adelaide, and Perth were among the most expensive locations. Sydney was named the second most unaffordable city overall, second only to Hong Kong. Adelaide ranked sixth, Melbourne ninth, Brisbane 11th, and Perth 14th. While Perth was rated 'severely unaffordable,' the other four capitals were classified as 'impossibly unaffordable'. 'It is remarkable that these markets are less affordable than widely recognised world cities like New York, London, or Chicago,' the report stated. The annual report, published by Chapman University's Centre for Demographics and Policy, compares median house prices with median household incomes across 95 major housing markets in Australia, New Zealand, the UK, the US, Canada, China, Ireland and Singapore. Report principal Wendell Cox said Sydney had consistently remained among the least affordable housing markets globally. 'Sydney had the first, second or third least affordable housing of any major market in 16 of the last 17 years,' he wrote. 'Even the smallest Australian market, Adelaide, endures an impossibly unaffordable median multiple of 10.9, ranked 90th among the 95 markets. 'It is remarkable that these markets are less affordable than widely recognised world cities like New York, London, or Chicago.' The report found middle-income home ownership, once widespread in developed countries, had significantly declined as prices surged ahead of household earnings since the 1990s. Researchers looked to understand why the some markets were so hot. 'Among high-income nations, middle-income homeownership was once widespread, with house prices aligned with incomes,' the report read. 'Since the 1990s, however, prices have surged—especially in markets governed by urban containment strategies early (e.g., San Francisco, Sydney, London) —with homes now costing 9–15 times household income.' Centre director Joel Kotkin attributed the trend to restrictive planning and land-use policies. 'The Demographia report has shown that where such policies predominate, for example in the UK, California, Washington, Oregon, Colorado, New Zealand, Australia and much of Canada, the results are disastrous, at least for potential homebuyers,' Mr Kotkin said. Researchers pointed to 'urban containment' strategies – including greenbelts, zoning restrictions and growth boundaries – as key drivers of unaffordability, particularly when such policies limit housing expansion on the urban fringe. 'Nearly all severely unaffordable housing markets follow the urban containment model,' Mr Cox said. 'The resulting land scarcity inflates prices, particularly near urban growth boundaries.' The report found that in markets such as San Francisco, Sydney and London, median house prices had reached between nine and 15 times the median household income. Land value was identified as the most significant cost in these areas, with prices spiking around areas where development was allowed near formerly restricted zones. The researchers also questioned whether building high-density housing in existing urban areas actually improved affordability. They warned that if such housing remained too expensive or unattractive to most middle-income earners, the underlying issue would stay unresolved.
The Age
15-05-2025
- Business
- The Age
The locations where buying a property is now ‘impossibly unaffordable'
Four Australian cities have been labelled 'impossibly unaffordable' to buy a home in a new study, as separate research shows more than 30 per cent of dwellings now cost $1 million or more. The latest edition of the Demographia International Housing Affordability report compared the median house price to the median household income – a measure it called the median multiple – in 95 housing markets across eight countries. It ranked Hong Kong as the most unaffordable housing market analysed, followed by Sydney in second place. Adelaide ranked sixth and Melbourne ranked ninth among the 'top 10 least affordable' markets. The study by Chapman University in California rated markets on a scale ranging from 'affordable' (3.0 or less) to 'impossibly unaffordable' (9.0 or more). Across the 10 least affordable markets all were rated 'impossibly unaffordable' by the report. Brisbane was also ranked 'impossibly unaffordable,' with a median multiple of 9.3, while Perth got a rating of 8.3. 'Sydney has had the first-, second- or third-least affordable housing of any major market in 16 of the last 17 years,' said the report, calling it 'remarkable' that Australian markets including Melbourne and Brisbane were 'less affordable than widely recognised world cities like New York, London, or Chicago.' For the first time in its history, the Demographia report found none of the major housing markets it surveyed were 'affordable' (3.0 or below). According to the study, the primary causes of housing affordability were 'urban containment' measures such as growth boundaries, as well as restrictive land use policies. It came as Cotality (formerly CoreLogic) released research that found more than a third of homes nationally were now valued at $1 million or higher. The portion of dwellings valued at $1 million or more rose from 9.7 per cent in April 2015, to 34.4 per cent as of April 2025, a series high.
Sydney Morning Herald
15-05-2025
- Business
- Sydney Morning Herald
The locations where buying a property is now ‘impossibly unaffordable'
Four Australian cities have been labelled 'impossibly unaffordable' to buy a home in a new study, as separate research shows more than 30 per cent of dwellings now cost $1 million or more. The latest edition of the Demographia International Housing Affordability report compared the median house price to the median household income – a measure it called the median multiple – in 95 housing markets across eight countries. It ranked Hong Kong as the most unaffordable housing market analysed, followed by Sydney in second place. Adelaide ranked sixth and Melbourne ranked ninth among the 'top 10 least affordable' markets. The study by Chapman University in California rated markets on a scale ranging from 'affordable' (3.0 or less) to 'impossibly unaffordable' (9.0 or more). Across the 10 least affordable markets all were rated 'impossibly unaffordable' by the report. Brisbane was also ranked 'impossibly unaffordable,' with a median multiple of 9.3, while Perth got a rating of 8.3. 'Sydney has had the first-, second- or third-least affordable housing of any major market in 16 of the last 17 years,' said the report, calling it 'remarkable' that Australian markets including Melbourne and Brisbane were 'less affordable than widely recognised world cities like New York, London, or Chicago.' For the first time in its history, the Demographia report found none of the major housing markets it surveyed were 'affordable' (3.0 or below). According to the study, the primary causes of housing affordability were 'urban containment' measures such as growth boundaries, as well as restrictive land use policies. It came as Cotality (formerly CoreLogic) released research that found more than a third of homes nationally were now valued at $1 million or higher. The portion of dwellings valued at $1 million or more rose from 9.7 per cent in April 2015, to 34.4 per cent as of April 2025, a series high.
Yahoo
28-03-2025
- Business
- Yahoo
Australian PM calls general election for May 3
Australia will hold a general election on May 3, Prime Minister Anthony Albanese said Friday, locking in a showdown over climate action, nuclear power and a runaway housing market. Albanese's centre-left Labor party took office in May 2022, turfing out a conservative government deeply unpopular after almost a decade in charge. But initial enthusiasm for Albanese, 62, has evaporated in recent months as the government nears the end of its three-year term. Polls show him neck-and-neck with right-leaning Peter Dutton, 54, a hard-nosed former detective who wants to cut back on immigration and reverse a ban on nuclear power. "Over the last few years, the world has thrown a lot at Australia in uncertain times," the prime minister told reporters. "Because of the strength and resilience that our people have shown, Australia is turning the corner. Now, on May 3, you choose the way forward." Albanese declared he was "born ready" to deal with climate challenges, tariff turmoil and the long tail of inflation. And he warned any foreign foes intent on meddling in the election campaign to "back off". Coal mining-superpower Australia will choose between two candidates with sharply contrasting ideas on climate change and emissions reduction. Albanese's government has embraced the global push towards decarbonisation, warning of a future in which iron ore and polluting coal exports no longer prop up the economy. His election catchcry is "building Australia's future" -- an agenda that includes big subsidies for renewable energy and green manufacturing. The government used an annual government budget earlier this week to unveil surprise tax cuts while pouring money into traditional Labor priorities such as education and healthcare. "Getting Australia back on track," is the contrasting slogan of Dutton. Dutton's signature policy is a US$200 billion scheme to construct seven industrial-scale nuclear reactors, doing away with the need to ramp up renewables. He has committed to slashing immigration by 25 percent and setting "stricter caps" on foreign students allowed to study in Australia. Polling shows economic concerns such as the high cost of housing will dominate the contest. Although inflation has eased under Albanese -- from 7.8 percent in 2022 to 2.4 percent in December -- many households are still struggling with high food, fuel, and power prices. Both sides have vowed to tackle an overheated housing market. Major cities Sydney and Melbourne now rank among the 10 least-affordable housing markets in the world, according to the annual Demographia affordability index. - 'Not a monster' - Albanese has spent most of his adult life in politics, rising through the Labor Party ranks from humble working-class beginnings. He touts his love of indie music and his shaggy cavoodle Toto -- and once famously declared that "fighting Tories" was his purpose. Dutton is a former drug squad detective widely seen as a no-nonsense political "hardman". His success will hinge, in part, on efforts to soften this image and broaden his appeal. Dutton's wife once told a tabloid newspaper that her misunderstood husband was "not a monster". An accomplished minister in the previous conservative government, Dutton has held weighty portfolios such as defence and home affairs. But he faced heavy criticism for his unyielding treatment of asylum seekers as Australia's immigration minister. - Independents day - Australian politics has long been dominated by Albanese's left-leaning Labor Party and Dutton's right-leaning Liberals. But growing disenchantment among voters has emboldened independents pushing for greater transparency and climate progress. Polls suggest 10 or more unaligned crossbenchers could hold the balance of power -- making a rare minority government a distinct possibility. The two major parties largely agree on defence and national security, committing Australia to an increasingly close military alliance with the United States. But they have differed over China in the past. Albanese has upped engagement with key trading partner China and made a breakthrough trip to Beijing in 2023, the first Australian leader to visit in seven years. The previous conservative government was highly critical of China, igniting a trade war that cost Australia billions of dollars until subsiding late last year. sft-djw/fox
