Sydney’s property boom has widened the already clear gap between city prices and the rest of the country.
Data released this week show that after a nearly 15% surge in 2021, the median price of a single house is about to reach an unprecedented $1.2 million.
The median at the beginning of the year was US$1.02 million, and it is now US$1.19 million.
According to CoreLogic data, apartment prices are also approaching an important milestone, with a median price of just under $800,000.
The price increase is so great that Sydney buyers are expected to pay more than twice the price paid by buyers in the smaller capital — and in most cases, the purchase of a house is much smaller.
Sydney’s median house price even dwarfs Melbourne’s soaring house prices. Although home buyers in the two cities have similar incomes, house prices are on average nearly $280,000 higher.
The average gap between Melbourne and Sydney units is about $175,000.
CoreLogic research director Tim Lawless said that Sydney’s distance from the rest of the country is due to a greater shortage of available housing.
Mr. Lawless said that previous price increases, such as 2013-2017, have also allowed many large households to have considerable assets in their existing homes, and they often use these assets to obtain larger loans for their next properties.
This wealth impact is not so strong in other capitals, because the initial price is not high.
Cameron Kusher, head of economic research at Realestate.com.au, said Sydney’s high cost of living means that homeowners in other capitals tend to have better financial conditions even if they have less income.
“Sydney tends to have higher incomes, but compared to (smaller) capital cities, there is less money left after housing costs,” he said.
Mr. Kusher said that Sydney’s housing price increase was caused by a variety of factors, including the small space for urban expansion and the historical increase in the number of immigrants from overseas.
The property listing shows that A$1.2 million represents the high-end real estate market in each capital city of Melbourne and Canberra.
In Adelaide, this price can ensure a large house with a swimming pool and tennis court in the suburbs of Seacombe Heights-about a five-minute drive from the beach.
In Perth, $1.2 million can buy a two-story modern house in the inner suburbs of Subiaco, or a historic mansion in a 6000 square meter block in the Darling Ranges east of the city.
Homes for sale in Brisbane are close to Sydney’s median, including the two-story “Queensland” in the coastal suburb of Manly.
In contrast, most of Sydney’s $1.2 million houses are more than 30 kilometers away from the CBD.
In the price range of the East Side, the only house is a boxy one-bedroom house in Paddington.
In the inner west, $1.2 million can get an uninhabitable terrace in St. Peters. The broker revealed that the price of this crumbling house represents the “land value.”
Most North Beach houses cost more than $1.2 million, and buyers on the North Shore can buy some houses near Ryde or north of Hornsby at this price.
In the west, $1.2 million can usually buy a modern four-bedroom house in suburbs such as Box Hill, or an older three-bedroom house in more established suburbs such as Kings Langley in the Blacktown area.
In the south, some duplex apartments on the outskirts of Sutherland County sell for about $1.2 million, as are old houses that need to be refurbished.
Apartments sold at the median unit price are also different, but the differences in different urban areas are not as great as independent houses.
Among the units available in the middle is a neat one-bedroom apartment, just a few steps from the coast of Vaucluse.
Seller Isabel Street Unit Jacqui Thompson said that for apartment buyers, the suburb is an “undiscovered gem” and they often think the area is too expensive to ignore.
“People just think of luxury houses and think the area is too expensive, but the units are worth the money, and it’s a truly amazing location,” she said.
Brad Gillespie of the agency said that when it comes to units, people have misunderstandings about Vaucluse and most of the eastern suburbs. “Buyers don’t research the location because they think there are only houses worth millions of dollars, but there is a lot of value there,” he said. “It has become a hidden treasure because people think it is more valuable.”
Mr. Kusher said that as house prices continue to rise, more Sydney buyers will have to accept units. “There is no more space to build houses outside of a few areas,” he said. “The only direction that Sydney can really build is upwards.”