sydney house view
House prices are to keep rising for some time. Image – Belle Co, Pexels.
  • Houses are forecast to have better price growth compared to apartments in all cities
  • Sydney house prices are expected to increase 8% by the end of 2022
  • "Sydney homeowners stand to make an eye-watering 3.5 times the average household salary," said Finder researcher

Sydney house prices are expected to increase 8% by the end of 2022, according to experts and economists in Finder’s latest RBA Cash Rate Survey.

Finder’s head of consumer research Graham Cooke said the average homeowner in Sydney is due to make $342,306 over 2021 and 2022.

“Sydney homeowners stand to make an eye-watering 3.5 times the average household salary of $97,211 just on their property.

“Melbournians are a distant second, with the average homeowner merely making 1.65 times the average salary.”

Houses

City Current price Expected price change Expected price increase Expected price at the end of 2022
Melbourne $880,000 9% $74,800 $954,800
Sydney $1,270,000 8% $102,306 $1,372,306
Brisbane $650,000 8% $50,267 $700,267
Canberra $905,000 6% $51,515 $956,515
Hobart $650,750 5% $35,040 $685,790
Perth $535,000 5% $24,692 $559,692
Adelaide $551,000 5% $25,007 $576,007
Darwin $578,000 4% $24,454 $602,454

Source: CoreLogic, Finder’s RBA Cash Rate Survey 2021

houses-bird-eye-view
According to the survey, houses are forecast to have better price growth compared to apartments in all cities. Image – Canva

Apartments

City Current price Expected price change Expected price increase Expected price at the end of 2022
Sydney $775,000 4% $31,000 $806,000
Melbourne $636,575 4% $27,422 $663,997
Adelaide $383,000 3% $11,107 $394,107
Brisbane $425,000 4% $18,159 $443,159
Canberra $525,000 3% $14,175 $539,175
Hobart $520,000 3% $16,120 $536,120
Perth $416,834 3% $12,505 $429,339
Darwin $398,000 2% $9,154 $407,154

Source: CoreLogic, Finder’s RBA Cash Rate Survey 2021

More than 2 in 5 economists believe there has been an increase in banks knocking back loans due to final auction prices being higher than their own internal valuation, according to the survey.

Mr Cooke said he’s not surprised banks are dubious about listing prices.

“It’s an agent’s job to garner as much hype as possible on their listed property. In turn this is putting more pressure on Aussie borrowers, and banks may be hesitant to take on extra risk.

“The home ownership dream is clearly still alive, but housing affordability is making the dream more difficult to come true.”

This is reinforced by SQM Research data, which revealed that weekly asking prices for houses is creeping close to $1.7 million – almost $500,000 more than pre-covid times.

Greater Sydney

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

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