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In a landmark moment for Sydney's real estate market, the city’s median asking price for houses has surpassed the $2 million mark, hitting $2,012,000 as of 15 April, according to SQM Research.
This figure includes Greater Sydney regions such as the Blue Mountains and Central Coast.
The development was confirmed by SQM's managing director, Louis Christopher.
SQM Research has highlighted that their methodology tracks vendor asking prices, providing an advance insight into housing market trends. Historically, these figures have been indicative of the future trajectory of house prices. As per Domain, the median sold price for houses reached a record $1,645,400 in the last quarter of 2024.
The forecast for Sydney's housing market suggests further price hikes are likely. A combination of anticipated rate cuts by the Reserve Bank of Australia (RBA) and significant policy initiatives promises continued growth in housing values. Financial markets project five rate cuts this year, which could lower the official cash rate to 2.85% by the year’s end. Additionally, the Albanese government has proposed a universal 5% housing deposit guarantee for first-time homebuyers, effective from January 2026.
Under Labor's proposed policy, the government will guarantee up to 15% of the loan value, allowing buyers to avoid the average $23,000 lenders’ mortgage insurance cost. As Sydney's population could reach over 8 million by the 2060s due to sustained overseas migration, the demand for housing in the city is expected to intensify.
The increasing population is likely to result in a trend towards higher density living, with apartments gradually replacing single detached houses. This transition will further amplify housing values in the city.
The surge in Sydney's housing prices reflects broader economic policies and market dynamics. The anticipated decrease in mortgage rates and the easing of housing access through policy reforms could continue to fuel the housing market's growth. This scenario is likely to strain affordability, impacting prospective homebuyers who may find the market increasingly inaccessible.
Looking ahead, the housing market is expected to keep climbing, especially as supportive economic conditions persist. The impact of government policy on housing affordability, particularly for first-time buyers, will be central to future discussions as these initiatives take effect. Moreover, as Sydney becomes denser, strategic urban planning will be critical to maintaining the city's liveability amidst rising population pressures.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at curbing potential risks in the housing market. Effective February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending portfolios. This move is designed to address concerns over escalating property prices and accelerated credit growth. - read more
Afterpay, a leading Australian buy-now-pay-later (BNPL) provider, has raised concerns over certain banking practices affecting its users. Reports indicate that some customers were advised to close their BNPL accounts to qualify for mortgages, only to be subsequently offered credit cards by the same financial institutions. - read more
Australia's major banks-Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Westpac, and ANZ-are undergoing a strategic shift by reducing their reliance on mortgage brokers. This move aims to protect profit margins in the face of low interest rates, rising operational costs, and intense competition in the home loan market. - read more
A credit score is a numerical representation of your creditworthiness. It's derived from your credit history, which includes the total amount of debt you have, your payment history, and other financial behaviours. - read more
In today's financial climate, many Australians find themselves exploring options to manage and optimise their financial commitments. One option gaining popularity is loan refinancing. But what exactly is loan refinancing, and how can it benefit you, especially without negatively impacting your credit score? - read more
Welcome to our ultimate guide on maintaining a healthy credit score. Whether you're just starting your credit journey or you're an experienced borrower, understanding how to keep your score high is crucial. - read more
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Mutual Fund: An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
