A lot of people think they are being priced out of the market, but in reality they are not.
A new analysis shows that real estate prices are actually going up, and the Australian Bureau of Statistics (ABS) is now reporting that Sydney and the surrounding metropolitan areas have become a lot more affordable.
This year, prices are set to rise by 1.3 per cent.
The analysis is based on an ABS dataset of rental prices in Sydney.
“In Sydney, the median price has risen by 0.9 per cent and the median house price has increased by 2.5 per cent over the past 12 months,” the ABS said.
“But in Melbourne, the increase has been almost twice as large, with prices rising by 9.2 per cent, and house prices rising 5.4 per cent.”
“The average monthly rent for a detached house in Sydney has increased from $1,974 to $2,903 in the past year, but it is still below the average monthly price of $2.4 million,” it added.
“The median monthly rent has increased just 2.4 percent, and average monthly house price in Melbourne has increased 4.3 percent.”
This is the second consecutive year that Melbourne has recorded record rent increases.
“We have seen the most dramatic increase in rents over the last 12 months in Melbourne.
The average monthly rental in the CBD has increased 7.3 percentage points, from $5,936 to $7,924,” the report said.
Melbourne’s rental prices are now set to go up again in the next two years, it said.
The ABS said Sydney’s average monthly rents are set at $1.2 million, and Melbourne’s are set for $2 million.
“For all the talk about the ‘hype train’ taking over the Sydney market, this is the reality that is driving Sydney and surrounding suburbs up in price,” Andrew Scott, a senior economist at Australian National University’s Canberra Centre, told ABC News.
“These are properties that are very affordable to rent in Sydney, particularly if you are a young person and want to live here, which many young people are.”
Mr Scott said there was also evidence that the trend was likely to continue.
“When it comes to house prices, the average Sydney house price is going up by more than 4.8 per cent annually, while Melbourne house prices are going down by just 0.7 per cent,” he said.