The prices of property in Sydney have risen far too much in recent years, according to some locals.
“The price of a home in Sydney is too expensive,” says Tony Tull, a retired Australian army sergeant who lives on the outskirts of the city.
“I bought my house in the early 90s and it was selling for about $900,000.
Today, it’s selling for $1 million.”
The housing market in Sydney has been undergoing an unprecedented boom since the end of the financial crisis.
But according to the Australian Bureau of Statistics, the average price of an average-priced home in the city has risen by a staggering 2,500 per cent over the past decade.
That’s enough to push Sydney’s average income to $53,000 per person over the last five years, the ABS said.
Sydney is now the most unaffordable city in Australia.
It’s not only the affordability of Sydney’s property market that has caused some to sell, according the ABS.
The median value of a Sydney home has soared by over $800,000 over the same period.
And that’s just a part of the issue.
“It’s about not having a proper market.
The market is broken,” said Tull.
“In my house, it doesn’t have a proper backyard garden.”
Tull’s property has an additional yard, which is now out of commission, which he says is putting his health at risk.
“When the garden is done, you’re not going to be able to use it in the winter,” he said.
“So I’m not using it because it’s expensive.”
The city has also become a hotbed for speculation.
In 2017, Sydney’s median house price surpassed $4 million, according a recent report by the Sydney Morning Herald.
Sydney’s current home prices are almost triple the national average, according an analysis by the National Australia Bank.
Many properties in Sydney are being sold for more than the asking price.
Some are being offered for more money than they were worth.
Sydney residents say the city’s current housing market is not working.
“They’re selling their houses at the top end, because it just makes sense,” said Tony Tully, retired Australian Army sergeant, on the city estate of Glen Waverley.
“I would like to see a better way to manage the property market.
I think we’re going to see more people sell.”
The problem has been compounded by the government’s new policy, called “Fair Value”, which was announced last month.
Under Fair Value, properties are taxed at a reduced rate compared to the market value.
That means a home that sold in 2020 for $700,000 now sits for $350,000, according property agent Zara Pash.
For many Sydney residents, that’s not enough.
The current policy “has created a lot of confusion about what’s going on with the property sector and what’s happening with property prices,” said Zara, who runs property advisory firm Zara Group.
“We have people who don’t understand that the government is putting their money into this market, but are not putting their own money into it.”
But Zara believes the government could use some help.
“What they need to do is create a system where there is a mechanism for people to be rewarded for buying property that is within the current value of the market,” she said.
In a recent study, Zara said it would be possible to increase the rate at which the city increases property tax.
But that would require a significant change to the way the city is structured.
Zara is also in favour of a more equitable property tax system.
There are also some locals who are concerned about the government trying to take control of the property markets.
While it may be tempting to buy a property and hold onto it for years, there are some things that could change that.
If you’re interested in buying a property in Brisbane, or the NSW suburbs, you can contact Zara for advice.
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