Sydney property prices have soared to a new milestone, with the median house price reaching A$1m ($736,000; £471,000), according to Domain property group. The price rose 8.4% in the June quarter and 22.9% year-on-year, marking the fastest annual growth since the late 1980s.
The surge, fuelled by record-low mortgage rates and strong investor demand, has outpaced booms in the early 2000s. Domain economist Andrew Wilson described it as a 'perfect storm' of local supply and demand factors, including a strong economy, high migration, chronic housing undersupply, and record investor activity.
The report highlights growing fears that many Sydney and Melbourne residents will never afford a home. The median Sydney house price now exceeds that of London and is catching up to New York and Paris.
Australian Treasurer Joe Hockey acknowledged the issue, stating the federal government is willing to work with New South Wales to address a housing 'supply logjam'. He noted that while building approvals and construction have increased, they are not meeting demand.
In Melbourne, the median house price rose 3.5% in the June quarter to A$668,030 ($492,000; £315,000), making it the second most expensive Australian city.
