Sydney, Australia: In a city with a high unemployment rate, a high cost of living and a housing shortage, the question on everyone’s mind is: how much is too much?
In Sydney, the answer is about £2,500 a month, which is the amount a couple could afford for a two-bedroom home, according to data from the Real Estate Board of Greater Sydney.
And that is only if you live in the outer suburbs, the data shows.
The median rent in Sydney is £1,827 per month, according the Realestate Board.
In the inner city, the median rent is $1,099 per month.
Rent in the CBD is about $1.2 million a year, according data from property site Zillow.
A year ago, the city was one of the most expensive cities in the country to buy a house.
At the peak of the property boom, the average price of a Sydney house was $1 million, according Zillows data.
But, with prices continuing to rise, rents in the inner cities have risen to record highs, according a report from property website Zillower.
According to Zilloview, the number of listings in Sydney’s inner suburbs has nearly doubled in the past year, from 4,400 in March 2018 to 13,200 in June 2019.
It is not just inner-city homes that are struggling to compete with Sydney’s high prices.
In the city’s outer suburbs the average sale price for a detached house is $2.3 million, up from $1m a year ago.
For a two bedroom, it is a staggering $4.3m.
There is also a huge difference between what is being advertised in Sydney and the real world, according Nicky Campbell, a property analyst at Zilloway.
“For the most part, Sydney’s listings are selling for much more than what you would find in a home,” she said.
This is largely because of the high prices of houses.
Nicky Campbell, Zillowing, property analystThe average listing price in Sydney for a one-bedroom house is about 10 times higher than in the Greater Sydney area, and in the central business district, the market is $30,000 higher.
With the median income in the city around $80,000 a year more than $50,000 in the capital, a $2,000 extra mortgage would buy a Sydney home for a family of four for a third of what they would have been earning.
Campbell also noted that the demand for a home in Sydney does not appear to be growing.
More people are looking to move to Sydney.
The average sale prices for a house in Sydney in the last quarter of 2019 were $2 million, which was $2 more than the same period last year, the Realtor.com data shows (the data includes detached homes).
The Realestate Institute of NSW reported that the median selling price for properties in Sydney has increased from $4,000 to $5,000 over the past two years, according of the Sydney Morning Herald.
Realtor.io shows the median price for the last three months in Sydney was $5.4 million, with an average price increase of more than 10 per cent.
Many of these homes are currently on the market for just $2 to $3 million.