Breaking the Homebuying Barrier: First Homebuyer Strategies Amid Sydney’s Soaring Property Prices – Sydney Auction Clearance Rate at 63%

Week’s Key Focus

Latest data shows that for high-income couples earning AUD $125,021 each annually, purchasing a standalone house without relying on the “Bank of Mum and Dad” requires looking an average of 43 kilometers away from Sydney’s CBD. Areas like the Central Coast, Penrith, Liverpool, and Campbelltown become primary options. However, shifting the focus to apartments allows buyers to find suitable properties closer to the CBD in locations such as Edgecliff, Parramatta, and Sutherland.

The research indicates that this type of couple has a purchasing budget of AUD $1,553,750, yet even high-income dual earners can only afford about 54% of standalone houses in Greater Sydney. While areas like Vaucluse remain out of reach, even more desirable suburbs in the Inner West and North West are challenging markets. In contrast, high-income singles with a budget of AUD $701,250 have even more limited options, being able to afford only a standalone house in San Remo on the Central Coast or apartments in areas like Mount Druitt and Liverpool.

Canstar’s Sally Tindall noted that skyrocketing house prices have led many first-home buyers to redefine the “Great Australian Dream,” such as no longer prioritizing standalone houses with lawns and instead focusing on apartments in lifestyle-friendly locations. MortgageWorks’ Anthony Roddy added that buyers without “cash gifts” often display greater determination, typically starting with smaller apartments and planning to upgrade within three to five years. Additionally, with the rise of emerging hubs like Parramatta and Rhodes, many buyers are choosing these self-contained CBDs, reducing the need to commute to Sydney’s city center.

For first-home buyers moving to the Central Coast, affordability and value are key attractions. Matthew Farrugia, Director of LJ Hooker Terrigal, highlighted that compared to Sydney’s high rental costs, mortgages on the Central Coast are more economical. For about AUD $1.5 million, buyers can secure a four- or five-bedroom standalone house, making it an increasingly popular choice for first-home buyers.

Auction Results Last Week

Sydney: 1345 properties went to auction, with results reported for 850. A total of 532 properties were sold, resulting in a clearance rate of 63%. The total auction value was $623,634,875, with a median house price of $1,587,500.
Melbourne: 1567 properties went to auction, with results reported for 1110. A total of 681 properties were sold, resulting in a clearance rate of 61%. The total auction value was $476,487,338, with a median house price of $945,000.