You know the plan you had to buy a house in Sydney, Australia? Let that dream evaporate and die.
A stress-inducing report by Domain has found the median house price in the harbour city has smashed the A$1 million mark. You know, the figure normally seen in a Lotto draw. So, the Australian dream has changed: The new version is securing a run-down shed in the back of Bourke and erecting your own white picket fence.
The report shows in the June quarter, Sydney house prices went from extreme to absolutely outrageous. The recent results show a surge of 22.9% over last 12 months, which is double the national median house price growth of 11.7%. In June alone, the median house price increased 8.4% to $1,000,616, according to Domain.
This wild increase takes the local house prices higher than the average in London, while nipping at the heels of New York.
"The main catalyst has been low mortgage rates — the lowest since the mid 1960s," economist Andrew Wilson said, according to the report. "It's a perfect storm of local supply and demand factors generating the price growth. A strong local economy, coupled with high levels of migration and a chronic undersupply of housing and record levels of investor activity have also been a significant contributor."
I'll just snap up a unit instead, you think. Not so fast. The median unit price also surged to $656,078. Things aren't looking good for the youth of Sydney. At least there's always Perth.
