Latest news with #SydneyRealEstate
Daily Telegraph
4 days ago
- Business
- Daily Telegraph
Home prices adjusted to inflation expose huge baby boomer wealth
Hopeful Sydney homebuyers are paying substantially more money for properties relative to the cost of everything else than any recent generation before them, alarming new analysis has revealed – rubbishing claims baby boomers had it harder because of higher interest rates. The exclusive PropTrack study showed current prices were four times higher than in 1980 once adjusted for inflation, with a typical house back then costing $65,000, the same as $338,000 in today's money. It's a far sight from the $1.47 million Sydney houses are typically selling for in 2025. The research measured housing costs across each decade, showing property prices over the 1990s, 2000s and 2010s were also markedly cheaper than today when compared to other living costs at the time. Sydney's $187,000 median house price in 1990 was equivalent to $447,300 in today's money, while the $285,000 median in 2000 was worth $544,000 in 2025 dollars. MORE: 40yo 'disappointed' he only has 300 homes Even buyers who snapped up homes in 2010 paid significantly less than today in real terms. The average house back then cost $600,000, which would translate to about $874,300 once adjusted for inflation. SEE WHAT HOMES REALLY USED TO COST IN YOUR SUBURB REA Group economist Eleanor Creagh said the incredible differences in the real cost of housing over the decades showed current first-home buyers faced challenges like no generation before them. 'To boil down the challenges for first-home buyers to overspending on travel or smashed avocado is narrow and simplistic,' she said. 'Every generation has its own unique struggles but on the whole today's buyers are navigating a fundamentally different landscape with structural housing barriers baby boomers did not have. 'The deposit and stamp duty burden is much higher, affordability is more stretched and prices have vastly outpaced wage growth.' Ms Creagh said home prices in 2025 were significantly more expensive than the real costs of housing in the 1980s, 1990s and 2000s because of sweeping cultural, social and economic changes. These included the rise of dual income families as the predominant class of buyers and an interrupted run of economic growth between 1991 and 2020 that saw Australia stave off a recession. Markedly lower interest rates than in the 1980s and 1990s, and the resulting boost in spending power this gave buyers, was another factor that drove up prices, Ms Creagh said. Building costs have also risen. 'There are a lot of factors,' she said. 'The Australian population has grown by about 10 million since the 1980s and most of that growth has been concentrated in city markets where the supply of new housing has been constrained. 'There's also been a cultural shift. Property is a much more popular vehicle for wealth creation and when you combine that with economic deregulation and tax incentives, it's helped push prices up.' PropTrack economist Angus Moore said the lower prices paid by previous generations, even once adjusted for inflation, indicated younger people had a harder entry into the housing market. 'The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in home ownership rates which have fallen over those years,' Mr Moore said. Young people were taking longer to enter the market, relying more on family support to stump up a deposit, or making use of government incentives to buy with a smaller deposit, Mr Moore said. McGrath Hunters Hill agent Antonios Kanis said decades of price gains, while being an incredible wealth creator for owners, have come with a downside. 'Some homeowners want to move but can't because if they sold they wouldn't be able to get back into their own area. There's always a shortage of stock and that keeps prices high,' Mr Kanis said. Among the homeowners in this position are Wareemba residents Georgia and Malcolm Clark: they wanted to upsize from their current duplex to a house in the area but prices have exploded in the eight years since they bought. 'We love it here, it's got such a great community, but we've become priced out,' Ms Clark said, adding that they were now selling up their home at 345 Great North Rd and planning to relocate to a cheaper area. 'Those recent rate cuts will help with borrowing power but we also think it might heat up prices. We just hope that because we are buying and selling in the same market it will balance out.'
News.com.au
7 days ago
- Business
- News.com.au
The Rocks Sirius penthouse for sale for $45m to $50m
Iconic for its landmark location and brutalist architecture, Sirius, made headlines after being transformed from a government housing estate into a $585m 76-unit luxury apartment project with arguably the best view in Sydney. The crowning penthouse made an appearance last year with $45m to $50m price hopes, but never found its deep-pocketed buyer. It has now resurfaced with a similar asking price, a new agent, and a revitalised interior offering. 'We've invigorated the apartment with new furniture, artwork, and added some extra luxury items,' said Steven Chen of The Agency, who has co-listed the penthouse with colleague Luke Hayes. The pair have a handful more to sell in the building. The penthouse's owner has been reported as former Macquarie banker Jean-Dominique Hugh of developer JDH Capital, which brought the building back in 2019 from the State Government for $150m. It had been an in-house off-the-plan deal for a rumoured $35m. More than a simple reshuffle of staged furniture, the sky-high home comes with an updated $500,000 furniture package including soft furnishings, art and designer clothing curated by Jack Freeman of Cohen Freeman. The home's interiors were crafted by London-based guru, Kelly Hoppen. 'It's never been lived in and comes fully turnkey, with about half a million dollars worth of bespoke brand new furniture and hand-picked artwork. So it's a very elevated, world class level of finish,' Chen said. While the inside of the 430sq m four-bedroom, five-bathroom penthouse is impressive, the enviable view is the home's wow factor, according to Chen. 'You can look at the beautiful photos, but when you're actually there you realise that Sydney Harbour is such an incredible world stage. It's probably the closest point you'll get in a new building with the Harbour Bridge and Opera House right in front of you. The view is absolutely stunning. Especially at the moment with all the lights from Vivid,' he said. 'In my job I see Sydney Harbour every day, but this is just spectacular from its unique vantage point.' Despite the apartment not securing a buyer in 2024, Chen said the moment is right for the prestige penthouse. 'It's the perfect timing for a relaunch. The holidays have passed and the election has finished. 'We're seeing a lot of interstate clients looking for turnkey lock up and leave homes. 'There's interest from Melbourne, Adelaide and Brisbane. Even international permanent residency clients have resurfaced in a big way since we launched a week ago.' The Sirius penthouse at 38 Cumberland St features 40sq m of outdoor entertaining space including a private pool, a custom-made kitchen with hand-selected joinery and marble, as well as Wolf and Sub-Zero appliances, ensuites to all four bedrooms, plus a primary suite with its own lounge room, study, steam shower bathroom and walk-in wardrobe. There are also two living rooms, an internal elevator, custom stucco walls, a private entry lobby, two separate entry doors, and secure parking for three cars. Sirius has a 24/7 concierge service, a five-star gym, heated swimming pool and sauna, a sophisticated residents' lounge and meeting room.
News.com.au
26-05-2025
- Business
- News.com.au
Aussies shocked at price of Sydney home but agent has a simple message: ‘They don't know'
'Sydney prices are a joke.' That's the sentiment from Australians after a video went viral showing a period home in Sydney's eastern suburbs with an asking price of almost $7 million. The five-bedroom, three-bathroom Federation-style home on almost 700sq m in one of the city's most sought-after tree-lined streets needs a bit of work. Even the agent admits that. But many could not understand how it might fetch such a hefty price. '$7m for this? Australia is cooked,' one person wrote on a video shared by a Sydney buyers agent. '$7 million and the master bedroom doesn't even have an ensuite?,' another wrote. 'No understanding why anyone would price this house at $7 million,' wrote another. But the home at 29 Milroy Avenue in Kensington is worth more than that, according to Roger Wardy, the Director at Ray White Touma Taylor. He should know. He just broke the suburb record with a sale of a similar property — 6 Mooramie Avenue — one week ago that went for $7.5m. 'They don't know,' Mr Wardy told when asked about those questioning the price guide. 'They're uneducated about wealth or how to make money. First, they don't have that amount of money. When you know that area and the growth, you wouldn't think twice about that price.' In fact, Mr Wardy believes the home is worth more. With a few small tweaks, he believes it could be the first home in the suburb to attract offers in the $8m range. 'I see the value here. That's why I invest here. This spot here is on the tree-lined, flat section of the most sought-after street in the suburb. 'It has a huge amount of space, lush gardens, a massive pool, very high ceilings the whole way through. 'Properties like this are rare. It's not the most renovated, but not the most unrenovated. You don't need to spend that much to make another million — just a few cosmetic changes and it could get $8m.' Not bad for a home that sold in 1997 for just $695,000. Kensington is just south of Moore Park and west of Randwick, 4km south-east of the Sydney CBD and less than 10 minutes from Coogee Beach. It is booming. In the last four years, the median house price in Kensington has grown from $2.5m in 2020 to more than $4.2m in 2024. And Milroy Avenue is 'regarded as the best street in the suburb,' Mr Wardy says. 'It's five minutes from the city, 10 minutes from the best beaches, close to transport to the west and north. It's really conveniently located. 'The people who live here have top tier jobs; surgeons, solicitors, barristers, directors of banks, they live here. 'What I've noticed is people think they want to live near the water. But in two years, they get over it, they get sick of having drunks walk past their house. So they come back from water side to park side. They raise their families here instead.' Mr Wardy said Kensington is growing in such a way that it has passed the rate of growth for Vaucluse — one of Sydney's most affluent suburbs. 'If you had invested in Kensington 10 years ago and Vaucluse 10 years ago, the percentage growth on the dollar is more in Kensington. 'It's like a diamond in the rough.' The sale of 6 Mooramie Avenue, which broke a suburb record at the start of May, overtook another of Mr Wardy's sales. In September last year, he sold 7 Lenthall Street in Kensington, a corner block, for a whopping $7,250,000. The new suburb record at the time was sold after a single inspection. It bodes well for the upcoming sale at Milroy Avenue. Even if those on social media can't wrap their head around it just yet.
