6 days ago
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.
