More people in Sydney have moved out primarily because of high home prices, which won’t become cheaper despite falling property values in the capital city.
In terms of monetary value, the average price of a house in Sydney costs more than $782,000 as of March. You would need to pay around $128,000 as a total deposit for a median-priced home. It’s not surprising then why residents in the city have left to find other affordable places.
Where People Are Moving
The exodus of residents in Sydney led to New South Wales having the highest rate of outbound migration in the third quarter of 2018, according to the Australian Bureau of Statistics data. An estimated 11,490 people moved to Queensland during the period. Many of those who moved to Queensland have relocated particularly in the northern area. Home prices in the region are lower such as house and land packages around Townsville.
As an example, the median home price in Brisbane costs almost $490,000, yet you only need to pay $66,770 for the total deposit. The prices in suburban areas could be lower depending on where you look for a listing. The deposit amount already includes the lender’s mortgage insurance and stamp duty if you are buying a property for the second time.
It will only take you three years and a month to pay the total deposit for a median-priced home in Brisbane if you save $400 every week within this time. By contrast, you should keep the same amount each week for five years and nine months to afford the total deposit amount in Sydney. Take note that location is essential to determine the actual price of a house. For instance, a home will be more expensive when you move nearer a coastal community.
The Price of Coastal Homes
While most people leave Sydney to find a cheaper place, some people want a beachfront property without spending more than $1 million. You could find a beach house for sale along the Sunshine Coast and Gold Coast for around $750,000 or more. Apartments are more affordable in these regions. In fact, it’s possible to spend $424,750 to buy an average unit in Mooloolaba, Sunshine Coast. This is lower than the median home price in Brisbane.
In the Burleigh Heads suburb of Gold Coast, you could find an average apartment for sale at $535,000. But if you prefer to buy a house at the lowest possible price, you should head to Balgal Beach where median home prices are the lowest in Australia. CoreLogic said that common property in the coastal suburb cost as low as $25,000 in 2018. The place is just 35 minutes away from Townsville, so this doesn’t explain why prices in the area are so low.
In the end, it’s almost impossible to own a house or even an apartment in Sydney because of the high price of homes. If you have a growing family, it’s better to relocate into another city where houses are bigger yet more affordable.