With housing affordability such hot fodder for the mass media and perennial political debates, it’s no wonder Australian homebuyers, particularly those in Sydney and Melbourne, are left scratching their heads when it comes to buying a home and what they can afford.
The latest report, Analysing the Sydney housing price premium, by CoreLogic unfortunately doesn’t paint a very sunny picture for first home buyers based in Sydney.
Over the September quarter the median selling prices of houses in Sydney was a whopping $890,000. That’s 39 per cent (or $248,500) more expensive than the median price in Melbourne, the second most expensive capital in Aus. Meaning Sydney first home buyers on average would need to save a massive $178,000 for a 20 per cent house deposit.
As of September 2016 the combined Australian capital city median house price was $600,000 (*It’s important to note here however, that this median was calculated based on sales and transactions that are mostly occurring in Sydney and Melbourne, so the premium prices for housing in Sydney and Melbourne have heavily influenced this figure).
Quarterly median house and unit selling
prices, combined capital cities
We thought it’d be interesting to compare what $600,000 can buy you across Australia’s capital cities, to see just how significantly the substantial premium you pay for Sydney and Melbourne housing stacks up when compared to property in other cities.
Who knows, the properties on offer in other states may be so impressive and such great value for money, first home buyers in Melbourne and Sydney may be tempted to seek a better standard of living interstate or become a rentvestor elsewhere to get their foot onto the property ladder. Here’s what $600k worth of housing looks like across Australia.
Median house price- $890,000
Distance to CBD- Lalor Park is 40km from CBD, 40 mins by train or 50 mins drive to Sydney.
Details- Renovated 3 bedroom, 1 bathroom weatherboard home with a big backyard featuring established fruit trees.
Median house price- $641,500
Price- Approx $600k.
Distance to CBD- Sunshine is 14km from CBD, 30 mins by train or car.
Details- Renovated double fronted 3 bedroom, 1 bathroom period house with 4 car garage.
Median house price- $505,000
Price- Advertised as $595k+.
Distance to CBD- Wynnum is 20km from Brisbane, which is a 35 min drive or 40 mins by train.
Details- 4 bedroom, 3 bathroom fully renovated classic Queenslander.
Median house price- $440,000
Distance to CBD- Marden is only 6km from Adelaide’s CBD, which is about a 15 min drive.
Details- 3 bedroom, 1 bathroom charming stone fronted home.
Median house price- $480,000
Price- From $519k.
Distance to CBD- Rivervale is 7km from the city, which is a 13 min drive or 14 min by train.
Details- 3 bedroom, 2 bathroom modern townhouse with double garage.
Median house price- $349,500
Price- mid to high $400,000s.
Distance to CBD- Derwent Park is 8km from Hobart, a 15 min drive or 20 min bus ride.
Details- 4 bedroom, 2 bathroom renovated period house.
Median house price- $500,000
Distance to CBD- Woolner is 4km from the city centre, which translates to an 8 min drive.
Details- Modern 3 bedroom, 2 bathroom family home.
Median house price- $625,000
Distance to CBD- Kambah is 19km from the city centre, about a 20 min drive.
Details- 4 bedroom, 2 bathroom renovated brick home with triple car garage.
As you can see, when compared to other states, first time homebuyers in Sydney have to live a substantially greater distance from the CBD in order to afford a $600K home.
For more ideas on where to buy in Sydney check out Sydney’s 10 most walkable suburbs, the safest suburbs in Sydney and affordability woes drive Sydney first homebuyers south-west.
Happy house hunting!