NSW Sydney prices going too far?

I agree that covid is yet a big risk.
But i think the biggest risk is our government. They are hard to predict and you never know what they will do next.

 

The project at the Block Redfern took a while to be built (There was an Aboriginal tent embassy there for a while protesting around 2014~2017? As they wanted to still have sufficient homes for Aboriginal there) and personally I am happy to see it's low rise... I have a property near by. Prefer to see it not too high... location is really handy near Redfern Station and I would have thought they might have been permitted to build higher.

 

It is so ... word from agents, and on the street from locals, is that's it's Sydney "wfh" money that is coming in to Newcastle that is a significant driving force in the upper echelon prices

 

I'm always stunned by the prices in Sydney. I went to an auction about a month ago in Adelaide and a cashed up Sydney buyer spent 1.1 million for a house in Melrose Park that was only expected to go for somewhere between 800k to 900k. 10 years ago I thought that if you weren't earning at least 100k it wasn't worth living in Sydney. These days I would reclassify that to a 200k+ household income. Most of the population will never have a 200k household income in their lives (at current prices) not to mention having that income and also raising kids in the future.

A house 10km from the Sydney CBD (say Ashfield) is $2 million. Even Campbelltown 50km+ from the CBD has houses for 600k+, which is so far from the CBD it could be a satellite city. I left Sydney 7 years ago because I couldn't justify the prices. The only solace for average young Sydney residents (overwhelmingly renters) is that rents haven't increased much since 2013 despite prices booming at least according to SQM data.

 

In relation to prices, the main support is low interest rates and quantitative easing.

People are taking on massive debt. How do they pay the principal back? I can’t see much wage growth in the system (third year of no pay rises for me). If there is inflationary pressure, interest rates will rise, reducing affordability.

So whilst prices may rise in the short term, not sure if these rises will be sustainable, once people realise they can’t afford to pay off the principal.

 

It's been October 2019 since I've had my last pay rise! I track my monthly spending and in March 2021 I spent $3393 less than what I spent in March 2020. I've been salary sacrificing an extra $200 a fortnight into super compared to this time last year but my spending has definitely decreased as the $200 a fortnight only adds up to just over $400 a month. I'm probably an outlier though because if everyone had adopted my consumption habits Australia would be in a massive recession now.

 

Majority already own and the low interest rates mean they are getting ahead... the problem is, huge numbers of buyers want to buy landed property, it is scarce here in Sydney relative to demand in most areas, so the prices go up.
So the only way to buy property on land is to outpay what someone else will pay.
Of course, you can buy in an alternative location like Wollongong, Central Coast, Newcastle, Brisbane, and that pushes those prices up. Or settle for an apartment.

I was over in the Newcastle area this weekend, stayed with a couple who has lived there 22 years or so. Houses are still relatively affordable where they live. But the guy drives to Sydney each week for work. That’s a long way.... And he is not the only person I know doing the drive for work to a Sydney job, my CBA manager was doing it for years. That would kill me.

 

Even once a month would be too much for me lol.

 

Sydney is what it is because of the demand by many folks to live here. To pay the prices and zip it. Because they feel Sydney is worth it. For whatever reason.

Prices ain't going to crash unless demand is decimated through and through. That's a fantasy.

Unless the current supply/demand relationship greatly changes, Sydney will be only going up, over the next decades. Through rises, dips and twists. It's overall trajectory will be up.

Gotta accept it or move cities.

 

Correct. Why do unmotivated sellers exist? Is pretending to sell some kind of box ticking exercise for a tax loophole or a family drama?

 

Well put.

 

1. Vienna, Austria

CREDIT: EVELYN NESCHENZ/EYEEM/GETTY IMAGES
Coming in at the top spot with 99.1 out of 100, Vienna scored a perfect 100 in the stability, health care, education, and infrastructure categories, and 96.3 for culture and environment.


2. Melbourne, Australia

CREDIT: GETTY IMAGES/ISTOCKPHOTO
Melbourne previously held the top spot for seven years before being demoted to two in 2018’s survey, but the city still got perfect marks in health care, education, and infrastructure for an overall rating of 98.4.

3. Sydney, Australia

CREDIT: GETTY IMAGES
Another Australian city came in third place in the 2019 index, with a rating of 98.1. Like Melbourne, Sydney received perfect 100s in health care, education, and infrastructure.

4. Osaka, Japan

CREDIT: RAUDHAH RAZ/EYEEM/GETTY IMAGES
Osaka is the most livable city in Asia, taking the fourth spot with an overall rating of 97.7. Osaka got perfect scores for stability, health care, and education, with slightly lower marks for culture and environment and infrastructure.

Related: The Top 15 Cities in Asia

5. Calgary, Canada

CREDIT: GETTY IMAGES/PERSPECTIVES
The first North American city on the list is Calgary, Canada, with an overall rating of 97.5. The city actually scored perfect 100s in everything except culture and environment, for which the city earned a 90.

6. Vancouver, Canada

CREDIT: GETTY IMAGES
The second of three Canadian cities in the top 10 best places to live in the world, Vancouver received an overall rating of 97.3, with 100s for health care, culture and environment, and education.

7. Toronto, Canada and Tokyo, Japan (tie)

CREDIT: MATTEO COLOMBO/GETTY IMAGES

Toronto came in at fourth place this year, with an overall rating of 97.2. Its healthcare, stability, and education scores were all perfect 100's. Toronto's infrastructure score was 96.4, while its culture and environment score was 89.1.

| CREDIT: GETTY IMAGES
Tied for the number seven spot, Toronto and Tokyo received a 97.2 rating. Both cities were rated 100 for stability, health care, and education, with slightly lower marks for culture and environment and infrastructure.

9. Copenhagen, Denmark

CREDIT: ALEXANDER SPATARI/GETTY IMAGES
The second European city on the list, Copenhagen comes in at number nine, with an overall rating of 96.8 and perfect scores in education and infrastructure.

10. Adelaide, Australia

CREDIT: GETTY IMAGES/LONELY PLANET IMAGES
Rounding out the top 10 is another Australian city — Adelaide. With an overall rating of 96.6, Adelaide received 100s in health care and education.

 

Australia according to the list has 3 of the most livable cities in the world.

This commands a premium.


4,416 cities in the world with a population of over 150,000.

Sydney is Number 3 for liviability.



Let's put into perspective if you wanted the 3rd best car in the word or 2nd best Diamond in the word and so on. Or the 3rd best House.


If you don't value this. The word is huge value can be found elsewhere.

 

Adelaide edged Brisbane, Calgary trumped Vancouver and Osaka came ahead of Tokyo? C'mon, no fair.

 

Hey no article is perfect.

 

Sydney home sells for the second time in 5 months for $1.02m profit

$1m profit in 5 months! Crazy!

 

No wonder our cap cities serve as a magnet to migrants from all over the world! The quality and liveability of our cities is second to none. That is not going to change especially as Australia has managed covid better than any other nation globally, outside of NZ.
Watch the queues at our embassies/ high commissions globally for would-be-migrants as we restart the migration from late this year and next.

 

Dont know whether its excluded deliberately, but language is a huge factor.

If you cant speak german would imagine its tough to live in austria?

 

Also the immigration department have put out a welcome "Mate" just waiting for international border to reopen again.
Who will invest $5m into business in Australia and high earner employees.
Golden Visa Australia – Residency Investor Visas - Citizenship Investment

 

Would’ve paid tax on that being a developer.