Housing prices in Sydney have become a problem for young Australians resulting in people not leaving home until a much later age.
Students and residents are reaching ages of up to 30 before being financially ready to move into their own places in Sydney.
Ray White real estate agent Peter Luisi weighed in on students planning to move into their own homes.
“It’s important that you do your market research before you make big decisions, and if you can talk to other first home buyers to get their opinion that will help too,” he told The Newsroom.
When asked whether parents are buying for their children, or with their children, he used his own circumstances as an example.
“I purchased a property with my parents in Surry Hills. It’s difficult for first time buyers who don’t have a lot of equity.”
In response to whether there will be any foreseeable drops in housing prices, Mr Luisi said, “over the first half of the year, the number of sales of units has increased by eight per cent in the CBD, though interest rates are dropping lower.”
Mr Luisi said the primary demographic coming to him in search of buying a house in the city was “a mixed clientele, with both seasoned buyers and first home buyers, though younger demographics are not looking to buy.”
The plan for more developments in the city creates more opportunities for students to potentially move closer to the CBD with more young people moving into inner city apartments.
Sydney’s housing market has been categorised as “severely unaffordable” when being compared to metropolitan markets around the world. While Hong Kong remains the most expensive in the international housing market, Sydney’s entire CBD follows as second. Housing price inflation has become such a problem it’s affecting suburbs as far as Blacktown in Sydney’s west, with prices for a three bedroom house ranging around $400-$450.
A quick search on Domain homes reiterates the un-affordability of rent in NSW. A two bedroom, one bathroom apartment in Surry Hills can put you out of pocket anywhere from $760 to $1200 a week.
The top five highest-priced suburbs in Sydney are all included in the immediate and greater outskirts of the CBD. Inflation is so extreme that in some areas, households are expected to pay 12 times their annual income.
For apartments outside the city below the median price of $700,000, Newtown is an apartment hunter’s best option with a median price of $620,000. This may look good to some young buyers, but apartments on offer in the north-west are “newer and bigger” in contrast to those in the inner suburbs, which are usually in need of considerable renovation.
For units around the median price range, buyers should be looking at suburbs such as Alexandria, Annandale, Centennial Park and Lilyfield, as well as Newtown. – Dylan Walton
Photo of Surry Hills houses by Peter Moon.