Last year the median property price in Sydney rose by 13.4% – meaning that many properties increased in value by over $1,000 a week.
While I don’t necessarily agree it’s definitely worth looking at the reasons they think the market is bonkers:
1. There is one house (just the one) that could fetch up to $100 million.
Sitting on an almost 7000sq m harbourfront block in Point Piper, the large historic mansion is one of the last of its kind to remain in Sydney’s eastern suburbs.
Although the seven-bedroom mega pad has a ballroom, tennis court and stables, it actually doesn’t even have a pool.
2. Sydney’s median house price is now a whopping $654,000.
Sydney has the highest median house price in Australia according to property statistics firm, RP Data.
At $654,000, the pricey median is streets above Canberra ($549,000), Darwin ($540,000), Melbourne ($505,000), Perth ($520,000), Brisbane ($455,000), Adelaide ($390,000) and Hobart ($340,000).
That means that on the average home across greater Sydney, $25,000 is needed in cash upfront for stamp duty.
So Sydney’s first home buyers, who the lenders expect to cough up a huge 20 per cent deposit, will need an additional $130,000 in savings.
3. A house that is on the market for $60 million has been earning a cool $40,000 a week as a celebrity hang out.
A significant mansion on Victoria Rd, Bellevue Hill, Barford recently hit the Sydney market with price expectations of about $60 million.
The glamorous estate, which has a 20m pool, tennis court, and sprawling 5527sq m grounds has been the temporary home of superstars such as Beyonce and Jay-Z, Angelina and her large baby brood, U2 frontman Bono and Hollywood star Will Smith at as much as $40,000.
4. Apartments in Sydney now have a median purchase price of $518,000 but million-dollar units are no surprise to us.
With a half a million-dollar apartment median, Sydney’s units are the country’s priciest. For the same cash, Sydneysiders could buy an entire house in most other capitals — or two apartments in Hobart.
However, currently there are five Sydney suburbs where the median price for units is more than $1 million and a one-bedroom warehouse conversion loft has just fetched $1.13 million in the city-fringe suburb of Darlinghurst.[sam id=41 codes=’true’]
5. Sydney is home to 197 suburbs where the median house price exceeds $1 million.
Just a decade ago, Sydney was home to 56 suburbs with a million-dollar median or more, but now there are 197 millionaire neighbourhoods.
In Melbourne there are just 37 million-dollar suburbs, Perth has 31, Adelaide has seven and Brisbane is home to just six.
6. Sydney auctions have become so feverish, properties can regularly sell for $250,000 more than the set reserve price.
Property auctions have become an Olympic-sized spectator sport in Sydney and part of the entertainment (for those not bidding) is seeing just how high the price will go.
Prices under the hammer can often go $250,000 to $500,000 more than the set reserve price with one very ordinary house in Eastwood selling late last year for $2.385 million — $1 million more than the reserve price.
7. Sydney house to income ratios are “severely unaffordable”.
In the latest Demographia International Housing Affordability Survey, Sydney was labelled as “severely unaffordable”.
The Survey ranks urban housing markets into four categories based on their “median multiple” score, from affordable (3.0 and under) to moderately unaffordable (3.1 and over), then seriously unaffordable (4.1 to 5.0) to severely unaffordable (5.1 and over).
With a score of nine, Sydney is well and truly at the wrong end of the scale. Back in 1981 the median multiple was just five — and even then it wasn’t good.
8. There is a “$30 million plus” apartment for sale with a $100,000 strata bill.
Owned by the late billionaire, Cyril Maloney, the whole floor penthouse in Bennelong Apartments at Circular Quay was on the market three years ago with a $30 million price tag, but failed to sell.
The grand 700sq m apartment could now fetch between $30 million to $40 million.
If it achieves its lofty asking price, it will be Australia’s most expensive apartment. The record currently stands at $21 million, the price paid last year for a unit at Bondi Beach — in Sydney, of course.
More details at News.com.au
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.