Sydney's Housing Market Reaches Record $2 Million

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.

Published:Thursday, 17th Apr 2025
Source: Paige Estritori

Share this news item:

Finance News

Saudi Arabia's Sidra Capital Ventures into Australian Private Credit Sector

24 Apr 2025: Paige Estritori

Sidra Capital, a prominent alternative investments manager from Saudi Arabia, has made headlines with the launch of a new private credit investment fund targeting Australia's thriving mining and energy industries. The Sharia-compliant fund, known as the Sidra Asia Pacific Private Investments Sub-Fund I, will be headquartered in Singapore and managed by Sidra's local team there. - read more

Australian Fund Managers Brace for Impacts of US Tariff Policy

22 Apr 2025: Paige Estritori

The imposition of US tariffs under former President Donald Trump's administration is predicted to challenge Australia's publicly listed fund managers, according to analysis by research and ratings firm Morningstar. Shaun Ler, an equity analyst with Morningstar, suggests that these financial entities might experience a gradual decline in earnings over the medium term due to reduced cyclical benefits from interest rate cuts and increased market volatility. - read more

Business Loans Articles

Avoid the Common Pitfalls: Expert Advice on Startup Loan Applications in Australia

Embarking on a startup journey is an exhilarating challenge that requires not just a brilliant idea, but a solid foundation of financial support to turn that idea into reality. Finding the right funding can be a make-or-break moment for many startups. Here, preparation is more than just a good practice; it's the backbone of any successful loan application. - read more

Cash Flow Tips: Managing Your Finances for Startup Success

Cash flow is the lifeblood of any business, especially startups. It represents the total amount of money moving in and out of your business, and its management is essential for ensuring that your company can pay its bills and invest in future growth. Proper cash flow management helps to identify when money is needed, allowing businesses to make informed decisions and avoid potential crises. - read more

Unlocking Capital: Essential Tips for Securing Startup Financing in Australia

Starting a business is a formidable venture, and securing the necessary capital to transform a vision into reality is often one of the first major hurdles that Australian entrepreneurs face. With a myriad of financing options available, it is essential to navigate the startup financing landscape in Australia with a keen understanding of not only the opportunities but also the challenges it presents. - read more

Understanding Business Credit: A Guide for Small Business Owners

Business credit refers to the creditworthiness of a business, distinct from personal credit. It enables businesses to establish a credit history that is linked to their EIN (Employer Identification Number) rather than the owner's personal SSN (Social Security Number). - read more

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Index Fund:
A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.