Homes with a backyard in Australia’s capital cities are still expensive despite record falls in real estate values.
Buyers after a median-priced house in Sydney or Melbourne have to be prepared to live at least 15km from the city centre.
Houses near the central business district are still the preserve of the rich in Australia’s biggest cities, with monthly mortgage repayments beyond the reach of an average full-time worker unless they are in a relationship.
Homes with a backyard in Australia’s capital cities are still expensive despite record falls in real estate values (pictured is a $900,00 cottage at North Parramatta in Sydney’s west)
A crackdown on investor loans since 2017 by the Australian Prudential Regulation Authority has caused a record fall in Sydney and Melbourne property prices, in markets with lower unemployment.
This occurred even though interest rates remained at a record low of 1.5 per cent.
It also coincided with Australia’s net immigration pace soaring above 291,000 in 2018, the highest level in more than four years.
Sydney’s median house prices has dived by 11.5 per cent during the past year to $888,117.
They have also plunged by more than 15 per cent, or more than $160,000, since peaking in July 2017 at $1.049million.
Despite the record fall in Sydney house values, buyers still have to live a long way from the city centre to afford a median-priced home with a backyard in a city that is home to more than five million people.
For about $720,000, it is possible to buy a three-bedroom weatherboard home (pictured) at Mount Waverley, 16km south-east of the Melbourne’s city centre
A Victorian-style, three-bedroom cottage at North Parramatta, 26km from the city centre, is selling for $900,000, a level marginally above Sydney’s median house price, despite having an old kitchen and peeling wallpaper.
The monthly repayments of $3,500 would also be out of reach for an average full-time worker earning $82,500 a year before tax.
Median house prices in Parramatta have fallen by 11 per cent during the past year, making it Australia’s seventh worst performing housing market.
Western Sydney house values, however, recorded double-digit increases between 2012 and 2017 as wages growth remained flat.
The story is similar in Melbourne, where house prices also peaked in 2017.
During the past year, Melbourne’s median house price has tumbled by 11.5 per cent to $729,392.
For that price, it is possible to buy a three-bedroom weatherboard home at Mount Waverley, 16km south-east of the Melbourne’s city centre.
Monthly mortgage repayments of $2,835, however, would still put a median-price Melbourne house beyond the reach of an average-income earner who is single.
For $530,000, it is possible to buy a three-bedroom house (pictured) at The Gap, just 8km west of Brisbane’s city centre
Someone on a typical $82,400 salary would have more luck in Brisbane where median house prices stand at $538,849, after falling by annual pace of 0.4 per cent.
For slightly less than that, at $530,000, it is possible to buy a three-bedroom house at The Gap, just 8km west of Brisbane’s city centre.
The monthly mortgage repayments of $2,000 a month would consume 40 per cent of an average income earner’s take-home pay.
An average income earner’s buying power goes further in Adelaide, where median house prices are $467,684.
A three-bedroom red-brick house at Warradale, 12km south-west of Adelaide, is selling for $460,000 in a suburb near Glenelg beach.
A three-bedroom house (pictured) at Warradale, 12km south-west of Adelaide, is selling for $460,000 in a suburb near Glenelg beach
The monthly mortgage repayments of $1,818 would take up about a third of an average income earner’s take-home pay, putting them only marginally in the mortgage stress category.
Perth’s median house price of $461,890 is marginally less than Adelaide, however values in the West Australian capital have fallen by 6.7 per cent during the past year.
A three-bedroom house at Canning Vale, 16km south of Perth’s central business district, is selling for $468,000.
Hobart has, far and away, been Australia’s best performing housing market during the past year with median values surging by 6.8 per cent.
A three-bedroom house at Moonah, 5km north of the Hobart’s city centre, is selling for $480,000 on a large 700 square metre block.
This is similar to Darwin’s median house price of $479,103.
A three-bedroom house (pictured) at Canning Vale, 16km south of Perth’s central business district, is selling for $468,000
A three-bedroom house (pictured) at Moonah, 5km north of the Hobart’s city centre, is selling for $480,000 on a large 700 square metre block
For that kind of money, a three-bedroom house with a pool at Moil, 12km north of central Darwin, is selling for $480,000.
In another territory, Canberra’s median house price rose by 4.1 per cent during the past year to $665,701.
For about that price, a three-bedroom house at Kaleen, 9km north of Canberra’s city centre, is selling for $680,000.
Canberrans, however, have Australia’s highest average salaries of $94,000, which means a public servant would be unlikely to be suffering from mortgage stress.
Someone on a high five-figure salary in Sydney or Melbourne wouldn’t be so lucky.
A three-bedroom house (pictured) with a pool at Moil, 12km from central Darwin, is selling for $480,000
A three-bedroom house (pictured) at Kaleen, 9km north of Canberra’s city centre, is selling for $680,000