The average property price in New South Wales has surpassed $1 million, according to figures released by the Australian Bureau of Statistics.
With property in regional areas of New South Wales, particularly the Northern Rivers and South Coast, exploding, it seems like the rest of the state has caught up with Sydney, where prices have been north of $1 million for quite some time.
The news comes as the whole Australian property market was valued at over $8 trillion, more than the total value of the ASX and over 400% higher than the GDP of Australia.
“It’s a big deal,” said Lloyd Edge, buyer’s agent and director at Aus Property Professionals. “I’m actually surprised, because the way that the regional markets and coastal cities have been going have been really strong, it’s actually the capital that has been having to catch up.”
“Cities like Sydney and Melbourne are only getting growth now, but earlier on post-COVID, it was the regional areas that were leading the way in contributing to that average house price.”
Many have cited the $1 million as an indicative number of how unaffordable New South Wales now is, especially for those on a public sector salary.
“I don’t think it’s that positive,” said Lloyd Edge of the news. “On one hand, people like to be creating wealth and feeling that, if their houses are worth more, they’re wealthier. There’s investors who have properties who are feeling positive about it too.”
“But if it’s getting to the point where people can’t afford to buy properties anywhere near where they work, it’s getting to be an issue.”
“That’s creating a nation of renters at the moment: people can’t afford to buy a home in Sydney or anywhere near. The one positive side is that they can strategically buy in a cheaper state, and make that in investment property.”
“That makes them a rentvester, which is becoming very common. It’s not such a good thing, because people like to put down roots and have a nice family home as security for them for years to come with their families and kids. The great Australian Dream of having a home is getting more out of reach for people.”
“What we have seen from the pandemic is a few people who have started to adjust their expectations and assess what they want out of life, and that’s why we’re seeing people move out to regional centres where housing is a bit cheaper. But that drives the price in regional centres higher as well, so it becomes a bit of a Catch 22 in that sense.”
