Housing affordability set to plummet further in Sydney

Tuesday 23 March 2010

Article by Mozo

Home prices in Sydney are set to double over the coming decade, making it increasingly difficult for potential first home buyers to enter the property market.

Figures prepared for The Sunday Telegraph by Australian Property Monitors show Sydney’s median property price is on target to reach $1.2 million by the end of the decade. This would amount to average growth of 7.6 per cent per annum.

Suburbs like Kellyville, Campsie and Forestville are all predicted to have a median price above $1 million while even more affordable outer-western suburbs such as Emerton and Blackett could be worth more than $600,000 by December 2019, the research found.

Meanwhile, in high-end areas like Watsons Bay and Palm Beach, property prices are expected to reach more than $8 million by the end of the decade.

John Symond of Aussie Home Loans advised people who have decided to compare home loans to act now and make a purchase before property becomes unaffordable.

This week, Loan Market chief operating officer Dean Rushton told News Limited that most banks and lenders are no longer willing to offer 100 per cent home loans.

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