If you were planning to buy a house in Sydney, we have got some bad news for you. Median house prices in the Australian city have hit $1m for the first time, according to the latest Domain Group House Price report. Domain said that is the fastest annual pace of gain since at least the late-1980s, outdoing the property price boom of the early-2000s.
The 22.9 per cent increase in the year to June to $1,000,616 – the quickest pace of gain since at least the late 80s – put the NSW capital above London, where the equivalent was $900,000, but still below New York, where it was $1.5 million, and Paris, where it was about $2 million.
But it’s not bad news for everyone. The NSW government should be pleased, with the Property Council of Australia saying homes over $1 million will be forced to cough up a minimum of $40,000 in stamp duty. The Property Council of Australia said Sydney homebuyers were enduring the “double whammy” of rampaging property prices and higher stamp duty bills.
“We know the average stamp duty bill in Sydney has increased by 750 per cent over the last 20 years, and is poised to accelerate further with rising house prices,” the council’s NSW executive director Glenn Byres said.
Domain Senior Economist Andrew Wilson says Sydney is the standout city in Australia in terms of property price growth.
Concerns about a rental affordability crisis have been mounting steadily as the housing market shows no signs of slowing down.
