Comparative affordability
Sydney and Melbourne – the nation’s
largest property markets – have endured price corrections over the last 12-18
months. However, these corrections follow on from accelerated property growth:
prices in Sydney and Melbourne increased by almost 50% in the last five years
to a median house sales price of $960,000 and $783,000, respectively
(CoreLogic). So, looking beyond the softening of the last year-and-a-half, it’s
still a challenge for buyers without equity – made even tougher by the Royal Commission
spooking lenders – to afford to buy in many areas of our capital cities.
But buyers and investors who look beyond the
city limits will comfortably purchase a home in a regional area without the
mortgage pressure of a capital city postcode. (Indeed, you might be able to buy
several properties for the same price as one on Sydney or Melbourne).
But let’s compare the more populous areas. In
the Hunter Valley (the region’s population is well over 600,000, with the main
area of Newcastle accounting for around 440,000) the median house price is
$530,000, 44% lower than Sydney’s equivalent median. The Central Coast – in some parts, only an hour by train to Sydney – is
home to more than 300,000 residents and a median house price of $759,000, or
20% lower than Sydney.
With thanks to Mathew Tiller on Jan 31 2019, LJH Newsletter 2019 Vol 25
