“There were reports earlier this year that parental contributions averaged over $ 89,000, which is an increase of almost 20% over the past 12 months.

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“Other versions of this see parents allowing their children to pay zero rent or pay significantly reduced rental rates on parent-owned properties.”

At times, it was difficult for anyone to keep pace, as Sydney recorded the fastest annual rate of price growth on record, reaching a median house price of $ 1.5 million, with apartments topping the record $ 800,000.

Today, residential real estate is now the largest asset class in Australia, worth an incredible $ 9 trillion, 38% of which is in NSW.

While in the 1970s a home cost seven times the average salary, it will now cost the regular home buyer 12.5 times their median annual income, according to the latest ANZ CoreLogic Housing Affordability Report.

Homebuyers in Sydney will need to save for over 16 and a half years to amass a 20% deposit for a home after the 30.4% price hike this year.

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“I think the most interesting thing this year has been that my house has made more money than me,” said Tim McKibbin, CEO of the Real Estate Institute of NSW. “And I wouldn’t be alone there; there would be many, many people in the same boat.

“But everywhere everything becomes unaffordable, and for many first-time homebuyers, that Australian dream of buying their first home is becoming increasingly beyond their reach, which is unsettling.

“For many others, their mortgages are also exploding with the low cost of money.”

At the top of the market, prices rose even faster, with the settlement of sales of new apartments in Barangaroo consolidating the foreshore square of the CBD port as one of the best prestige addresses in the country.

New high-end developments such as the Opera residences have also sold at record prices.

Lucy Macken, from The Sydney Morning Herald’s Title Deeds, said the CBD foreshore had already gained a foothold on the claim historically thanks to the Bennelong apartments – The Toaster – and again when the Opera Residences set a record of over $ 26 million with a purchase by philanthropist Robert Salteri and his wife, Kelly.

“Then a new record was set by a mystery shopper who purchased the top three floors of One Sydney Harbor from Lendlease for $ 140 million,” she said.

For houses, Woollahra ultimately claimed a place in the Sydney Trophy Market. It was already an affluent eastern suburb but, given the nature of its historic homes, it had never entered that trophy $ 20 million real estate market … until Kerri-Anne Kennerley scored 22 million dollars for his house.

Rosemont's sale to Woollahra for $ 45 million was a surprising sale for those passionate about luxury real estate.

Rosemont’s sale to Woollahra for $ 45 million was a surprising sale for those passionate about luxury real estate. Credit:Pierre Rae

“It shocked the custodians of the property,” Macken says. “Just like the sale of Rosemont a few weeks later for $ 45 million by Margot, Lady Burrell, although this is more understandable given the size of the estate. “

Meanwhile, a new record for the Inner West was set by the sale for $ 25 million of a waterfront estate in Abbotsford by the Bowes family, who had owned it for nearly 80 years, while the beaches of the north broke theirs with a $ 27 million purchase of Palm Beach.

A four-bedroom home at 22 Primrose Ave, Sandringham, sold for $ 8.38 million.

A four-bedroom home at 22 Primrose Ave, Sandringham, sold for $ 8.38 million.

The North Rim saw a $ 24 million sale to Northwood, the North Rim a $ 16 million sale to Killara and $ 8.38 million was paid for a property in Sandringham in southern Sydney.

The Sydney exodus has been accelerated by COVID-19, with a rush to sea change and tree change destinations as well as to outer regions and suburbs as technology has helped the transition to work from a distance. This pushed up prices in many lifestyle hot spots, such as Byron Bay – which even topped Sydney with a median of $ 1.55 million – and sparked big hikes in other favorites in the area. New South Wales like Orange, Kiama, Bellingen and Lismore.

“I never thought I would see the day we cost more than Sydney,” says Glen Irwin, director of Byron Bay Real Estate Agency. “But now I expect this to continue. We’ve had so many people come here, and they fall in love with it, and they’ll never come back.

“And we have such a shortage of properties compared to cities like Sydney and Melbourne… prices will continue to rise as people discover how good life is here.”

Many people have also bought vacation homes with money saved by not traveling, with a recalibration of high-end values ​​in traditional weekend areas such as Palm Beach, Dural and the Southern Highlands.

The exodus of Sydney residents to regional areas has pushed up house prices in towns like Kiama.

The exodus of Sydney residents to regional areas has pushed up house prices in towns like Kiama.Credit: llerogers / iStock

“We’ve had a lot of people buying here from Sydney, and prices in the area have generally gone up around 25 percent as a result,” says Anita Roelevink, agent manager Stone Southern Highlands. “Then we saw a lot of people moving here permanently.

“They have re-evaluated their life and want a more relaxed time and a village lifestyle in places like Exeter or Burrawang.”

Turning to 2022, most experts agree that the pace of price growth is likely to slow as online supply increases, adding a record number of back-to-back listings.

“So in the summer and fall the buying conditions will be better, and people who haven’t been successful before might have a better chance next year,” says Dr Powell. “Demand will definitely slow down.”

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That will come sooner rather than later if interest rates rise towards the end of 2022 or if the Australian Prudential Regulation Authority (APRA) tightens regulations further.

As of last month, buyers’ borrowing capacity has to be valued at 5.5% instead of a borrowing rate of, say, 2.5%, and that could be tightened further.

“A lot of clients are now asking ‘is my borrowing capacity less?’ as the first question, ”says Roberts. “This will likely hit first-time homebuyers the hardest, as they typically borrow more than someone who is already in the market and is moving to their next home. But it could affect everyone in one way or another.