Recent data indicates a shift in housing affordability across Australia’s major cities, providing a mixed outlook for buyers.
In Sydney and Melbourne, long known for their housing challenges, affordability shows signs of improvement. Currently, 12.1% of Sydney suburbs are deemed affordable for buyers on below-median budgets—up from 11.1% earlier this year. Melbourne’s progress is even more pronounced, with 34.5% of suburbs now affordable, compared to 24.4% just six months ago. This trend offers a glimmer of hope for those looking to enter these traditionally expensive markets.
Dr Diaswati Mardiasmo, the chief economist at PRD Real Estate, highlighted the change: “There’s more hope to be able to enter the Sydney market, more so than before. There’s more hope to enter the Melbourne market.”
However, the picture is less optimistic in Brisbane. The city has become the second least affordable capital, driven by a sharp 14.9% annual increase in house prices. Only 29.7% of Brisbane suburbs remain affordable for freestanding houses, a significant shift in perception about Brisbane’s affordability.
For homebuyers, the landscape is evolving. Units are increasingly emerging as the most accessible option, reflecting growing constraints in the market for freestanding houses. With affordability varying across cities and property types, acting sooner rather than later could be crucial in navigating these dynamic conditions.
