“Sydney is expensive because it is a world class city with a fabulous location and a wonderful climate, which is why people want to live there,” said REINSW President Steve Martin.
“While it may involve some sacrifice to get a rung on the Sydney property ladder, any short-term pain will be more than offset by buyer realisation that their home is an asset with an ever-increasing value.”
Between June 2006 and June 2007, 55,000 people migrated to NSW, many to Sydney. House prices rose up to 7.3% in the year to September 2007 and are predicted to keep on growing on the back of rising demand and a buoyant State economy.
“At a time when the stock-market is wobbling and share prices are falling, property provides a stable and attractive investment,” said Mr Martin. “For a start you can buy a property and have a positive impact on its value simply by painting it or sprucing up the garden. You can’t do this with shares which, as at the present, are much more vulnerable to the whims of the market.”
The 4th annual Demographia International Housing Affordability Survey found Los Angeles in the US to be the world’s least affordable city, while Mandurah in Perth was Australia’s least affordable and the world’s 6th least affordable city.