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News.com.au
18-07-2025
- Business
- News.com.au
Bargain homes list: cheapest Sydney suburbs 10km from CBD
Houses with a price tag below $2 million could soon vanish from Sydney's inner suburbs, with less than 100 houses currently listed below this threshold within a 10km radius of the city. It's come as agents warn $3 million has already become the norm for most houses in areas within Sydney's inner ring, with prices above $1 million largely the norm for most inner apartments. Research from Ray White Economics showed the cheapest inner suburbs were currently a strip of suburbs under the flight path of Sydney Airport, including Tempe, Sydenham and St Peters. Houses in these suburbs had a median price of about $1.7 million but, being smaller areas, rarely had properties available for sale. And the prices are going up. The next cheapest suburb within 10km from the city by median house price was Mascot, where houses commanded prices of about $1.95 million. Thereafter, Marrickville had the next cheapest houses, with typical prices of about $2.1 million. Ray White Economics data analyst Atom Go Tian said expensive prices in inner suburbs were affecting the entire market as it meant even families on decent incomes were being pushed out. 'We're very close to, or may have already reached the point, where sub-$2 million houses disappear entirely from 'easy reach' of the CBD,' he said. 'As each distance band fills up with expensive housing, buyers are pushed further out, creating a ripple effect that inflates prices in previously affordable areas.' Even the cheapest detached housing in much of the area within 10km of the CBD was out of reach for families on fairly decent incomes, Mr Go Tian added. 'The implication is that even with dual professional incomes, many households are effectively locked out of inner Sydney,' he said. '(That's) unless they have substantial family wealth or equity from previous property ownership. 'This effectively creates a two-tier system where property ownership in inner Sydney becomes increasingly dependent on intergenerational wealth transfer rather than earned income alone.' With limited options to buy houses within a 10km radius of CBD, PropTrack data indicated buyer competition has been ramping up – especially since interest rates were cut earlier this year. PropTrack reported an average of over 100 'key' buyers per listing for houses in Rosebery, in the inner south, and in coastal suburbs Coogee, Clovelly and Rose Bay. Key buyers were those who had inquired about listings with agents by phone, text, email or submitted an online request for an inspection. Adrian Tsavalas, the director of inner west agency Adrian William, said there were simply not enough houses within inner suburbs for the numbers of buyers who wanted them. 'It's just pure supply and demand and that's why the prices keep going up,' he said. 'It won't be long until there are no longer any opportunities to buy under $3 million close to the (CBD). We've already seen that happen with $1 million and then $1.5 million. It's inevitable.' Data showed prices in Sydney's middle ring suburbs – between 10km and 20km of the CBD – were generally cheaper than those closer to the CBD but remained a big ask for house buyers on regular incomes. House prices across most of this region were also above $2 million, with a cluster of suburbs that roughly followed the Bankstown train line in the southwest offering the most affordable options. This grouping included neighbouring suburbs Wiley Park and Lakemba (the only two middle-ring suburbs with a median house price below $1.4 million) and Greenacre, with a median of $1.45 million. Once house seekers went between 20km and 35km outside of the CBD, some of the cheapest options included southwest suburb Fairfield (median $1.12 million) and nearby Canley Vale ($1.22 million). 'Areas like Fairfield East, Granville-Clyde, and Auburn have industrial heritage that has historically kept residential prices lower,' Mr Go Tian said. 'The data shows cheaper areas are typically those with longer commute times or poorer transport connections, suggesting infrastructure hasn't kept pace with housing demand.' Marrickville resident Monica Wulff said she wasn't surprised to learn her area offered home buyers some of the best bang for their buck closer to the city. 'The houses are a lot bigger than in the surrounding areas and you get this access to culture while still being convenient and quiet enough to raise children,' she said. 'Our house has a big garage, new kitchen, space to breathe and a bit of a backyard and we didn't find you could get that kind of value even in places a little further out like Leichhardt.' The couple are now selling their Philpott St house at auction August 2 to be closer to family. Ms Wulff said cheaper prices in outer suburbs were not really an option for them. 'We need to be close to the city. It needs to be accessible. We got that in Marrickville but it's not easy to find that (in Sydney).'
News.com.au
05-05-2025
- Business
- News.com.au
Homeowners face ‘tough' debt decision after Albo election win
Newly re-elected Prime Minister Anthony Albanese has been urged to make cost of living support an urgent priority as alarming new polling shows debt problems have pushed many Aussies to the edge. The study showed mortgage repayments were swallowing more than half the monthly income of about one in five Aussie homeowners, who now face tough financial decisions to keep their homes. About three quarters of mortgage holders surveyed in the research were spending over a third of their household income on repayments – defined as 'mortgage stress'. This was despite the February cut to interest rates and a recent frenzy of refinancing activity as homeowners sought to cash in on cheaper loans. Mortgage stress levels were now at a 'crisis point', according to Finder, which pointed to additional research that showed about one in 10 homeowners had missed a repayment in the last six months. Finder home loans expert Richard Whitten said many households would need a lot more support than just another interest rate cut to stay afloat. 'The loan to income ratio has blown way out with millions teetering on the edge due to mortgage stress,' Mr Whitten said. 'Unexpected costs could spell serious financial trouble for many homeowners.' Mr Whitten said recent rate cuts and the prospect of another cut in May would offer much-needed reprieve for millions of Australians, but most households needed more cuts to make a real difference. 'Many families will still face tough financial choices to keep their homes,' he said. Nerida Conisbee, the chief economist at Ray White Economics, said the Albanese government's re-election could deliver mixed outcomes for the housing market. She pointed out that much of the housing policy announced in the lead up to the election was about supporting first-home buyers getting into the market. This included the government's flagship shared equity scheme, which will allow first-home buyers to snap up homes with deposits as low as 5 per cent. This policy, while aimed at improving accessibility for first-home buyers, was 'likely to drive prices higher in the near term before supply-side measures can take effect,' Ms Conisbee said. Much of the rise in prices would come at the most affordable end of the market, she added. '(That's) not great for affordability. But it will be a positive for people that already own property in those areas.' More interest rate cuts would help, Ms Conisbee said. 'Albo can't control those obviously. But they will be coming through now because of the global slowdown and inflation under control. 'A global slowdown, however, may come with rising unemployment so that is a risk factor … The real challenges come if people lose their jobs so it's really crucial they remain employed.' A possible financial lever the Albanese government could pull would be allowing a freeze on mortgage repayments, like those ushered in during the Morrison government's tenure during Covid. This step wouldn't be necessary unless unemployment went up markedly from current levels, Ms Conisbee explained. Finder money expert Rebecca Pike said some promised Labor policies may help if the government can deliver on them. 'The election of the Labor government means that Australians get the budget promises of tax cuts, energy rebates, student loan discounts and childcare subsidies, to name a few,' she said. 'This will be a huge help for so many struggling Aussies who have been battling rising costs. 'There may be some concern around what impact the budget measures might have on inflation, but for now people can breathe a little easier. And for the everyday Aussie, that's all they really need right now.' Housing Industry Association managing director Jocelyn Martin said the Albanese government should also prioritise home building. She also pushed back against any suggestion that the housing crisis lies outside the Federal Government's remit. 'We've heard it too often — that housing and planning is a state issue, or that the Commonwealth has limited levers to pull. That excuse simply doesn't stack up anymore. 'The Federal Government has the influence, the resources and the leadership role to bring all levels of government together. It can drive the co-ordinated policy, funding and reform needed to move the dial on supply and affordability — not just tinker at the edges. 'This was reinforced in yesterday's election results and with voters outlining housing as a key issue to be addressed as a matter of priority. We urge the new Government and the entire parliament to work together to implement the solutions already on the table. 'Housing Australians must not become a casualty of politics-as-usual. We can't afford more years of delay and stalling of key policies being implemented – we need action within weeks not years.'
