Sydney’s median house price to hit $2m, Perth $1m by 2027

Full article here (behind paywall)

Cheers,
Oracle

 

Sydney is median seems low. I think it can easily get to $2.4mill. As time progresses we will see the huge price differences between Sydney and other cities. We will see a flight to quality.

 

According to this projection Sydney will almost be worth double Melbourne, Brisbane and Canberra and with Adelaide you will be able to get more than 2 for 1 if you sell up in Sydney and move there. What everyone’s view on this on what are the main drivers ?
Personally I think this is bad for the future quality of life and freedom for many young people and we must fix it.
I’m surprised not many have commented here yet so far but I think it should be front and centre of what needs to be talked about.

 

at some point people should smarten up, and start moving out of the cities they cannot afford.

 

PPOR northern beaches Sydney. 3 other properties all in Sydney. Every time I toss up the idea of buying in another city Sydney is always my number one choice. For me the lifestyle is amazing and would want the the same for our 2 boys. At the moment we are looking at upgrading our PPOR. It seems that properties with that scarcity factor in Sydney will always go up regardless. Easy to see median go to $2million by 2027. Lifestyle locations like northern beaches triple that.

 

What happens if we dont ‘fix’ it?

 

Just my perception but I think in general, Sydney prices have peaked this mini cycle. Have no idea whether lower rates will kickstart things but if you think they will, right now is the calm before the storm and a good time to snap something up in what is a balanced market.

 

that has been happening already decade ago - but they moving further out of the city not to another city. its all about jobs. sydney just has more. majority will go to wherever they can get jobs, and nice environment to live - low crime, friends, family etc.

 

it's a self-sustaining cycle though. the reason sydney has more jobs is because there are more people, so more jobs get created and more people come.

if the cycle is broken, the jobs will follow people.

 

i personally invest on facts, not on ifs. but each to their own. would u think amazon cycle of dominance will break 10 years? 5 years ago? what about NYC?

of course there are many contrary examples too. but thats why its important to diversify but also to pivot when and if needed. these changes often take generation. so if u invest under an if assumption, u would miss most of the ride.

 

i'm not sure what any of this has to do with investing?

this thread is about where people live when they don't have enough money to afford living in Sydney

 

Everybody can afford to live in Sydney, there are some very affordable apartments.... Houses are a different story though, but people certainly have alternatives if they want to live in Sydney still. Plus, you can rent, rent out rooms, share houses.....

 

And I think, once a location establishes itself as a major location, it's really hard to change that. New York, San Fran, London etc. Sure, other locations can be really nice to live in, but major cities have their appeal, the jobs, and they draw people in.

 

the hardest bit about change is to realise that change is needed, and start doing something.

if people just keep whinging about Sydney being unaffordable and "where will my kids live?" but no one is going to lift a finger to do something about it, then nothing will ever change. and those kids will either be crammed into apartment ghettos, or forced to spend 3 hours on travel each day.

or they will smarten up and go elsewhere.

 

I doubt this. This is the neverending Sydney myth that is not backed up by long run data. People just say it when Syd has gains on gains but it does not hold long term. Syd gets away from Melb from time to time but then the gap closes with a Melb boom.
In fact long run data shows Syd does not outperform any other Australian capital. Just higher starting point.

 

Sydney keeps delivering and keeps getting higher. Personally I feel safe investing in Sydney.

 

If it has kept delivering and has kept getting higher then history shows that is the riskiest time to invest vs going elsewhere that has not had any movement for a while.
This is a safer strategy because if you look at the long run data, Syd does not outperform dollar for dollar.

 

This was on SMH today. If I could source the funds, I would have bought this. The street is A1. A $100K reno (including open planning the kitchen to living) would completely turn this place around.

https://www.domain.com.au/2-20-somerset-street-mosman-nsw-2088-2019185174

 

With these price projections, does it change your national strategy towards property investment ? And a supplementary question, what demographic and cultural changes do you envisage with Sydney hitting 2 million. Will there be a shortage of certain skill sets? I was talking to a teacher who is a single person who cannot see themselves staying and living in Sydney but even Perth at 1 mill seems high as well. Also some small businesses will find it impossible as well with costs blowing out for certain industries. I heard on the radio that many businesses on High Street in Penrith are shutting down including cafe’s and restaurants;

 

Nationally most if not all states will rise to one million median shortly so that's the new normal