The median house price in New South Wales is expected to reach $1 million by late 2015, according to the Real Estate Institute of New South Wales.
* Domain Group’s House Price Report.
REINSW President Malcolm Gunning said NSW could see a mass exodus of essential service workers as a results, which would cause dire consequences.
“If the current trend continues, which saw the March 2015 quarter Sydney median house price rise 3.6 per cent to $914,056*, by the end of year we will see property prices hit the $1 million** mark.
“Given the average person in NSW had yearly earnings of $77,600*** in the last quarter of 2014, even in a two income family who can afford a house in Sydney?
“Home ownership matters. How do we expect to keep our best and brightest? Our nurses,firefighters, policemen and teachers?
“It is time for the NSW Government to provide a solution in the form of the removal of property taxes. It is also important to free up our planning system to help with supply issues that are acting to drive prices up.
“We know that our future leaders still aspire to home ownership, however a report****compiled by accountancy firm BDO and The Co-op found 92 per cent of 18-29 year olds who live in Sydney think property prices make home ownership no longer achievable for their generation.
“Despite our conclusion that the median house price will be $1 million by the end of the year, of those who live in Sydney, 78 per cent have a greater desire to buy a property as soon as possible compared to 72 per cent of all Australians 18-29 years old.
“The NSW government must act now to ensure these young Australians can achieve their dreams of home ownership,” Mr Gunning said.
For further information or to speak with REINSW President Malcolm Gunning please contact Helen Hull at email@example.com or on 0419 642 961.
** Forecast based on Domain Group’s House Price Report continued growth of 3.6 per cent per quarter: June – $950,618, Sept – $984,840, Jan - $1,020,294
*** ABS Data, Average Weekly Ordinary Time Earnings, Full Time Adults by State, Original, Nov 2014
**** Future Leaders Index, May 2015