Two new data sets show Sydney wears unaffordability crown
New figures from Domain show average house prices near $1.7 million – while CoreLogic highlights the need for six times annual income to purchase a property.
TWO sets of data shine the spotlight on Sydney’s ranking as one of the world’s most unaffordable cities.
New figures from Domain show that average house prices are nearing $1.7 million – while CoreLogic analysis highlights households need to spend a minimum six times their annual income to purchase a property.
Domain’s chief of research Dr Nicola Powell said: “It has only been a matter of months since Sydney’s property market revealed signs of sagging.
“Price rises were limp and seller sentiment was low as buyers took advantage of a refreshingly large pool of homes to choose from. FOMO was scarce.
“But this is Sydney. It is a highly receptive market and the early impact of a single interest rate cut is rippling out through the inner city and into the suburbs.
“Back-to-back quarterly gains suggest this is more than just a short-term rebound.
“Sydney’s median house price is on the verge of hitting $1.7 million, leaping by another $28,200 over the March quarter to a record $1.692 million.”
Unit prices have edged up slightly but are not rising as fast as they once were.
Sydney’s best-performing suburbs over the past 12 months include units in Bellevue Hill and houses in Wentworthville.
CoreLogic’s Tim Lawless said the ratio of dwelling values to households’ income has consistently been above six since 2003.
It spiked to a record high of eight in 2022, and most recently during December of 2024.
“A ratio of 8 means a household on the median income would be spending eight times their annual gross income to purchase the median value dwelling,” Lawless explained.
The report also showed that a median income household that had purchased a median value dwelling with a 20 per cent deposit would have to use just over half their gross annual income for mortgage repayments.
Lawless said that aspiring homeowners are taking longer than ever to get onto the property ladder.
A household would have to save for 10.6 years for a 20 per cent deposit, assuming they can save 15 per cent of their annual income.
CoreLogic revealed that levels of unaffordability were most severe in Sydney, home to four of the top five and 12 of the top 20 least affordable electorates.
Bradfield – which includes North Sydney and Hornsby – is the least affordable in Australia, with the median household needing 21.9 years to save for a 20 per cent housing deposit on a property.
