Home prices in Sydney are being pushed up in part by unprecedented levels of Chinese demand, according to McGrath Estate Agents.
As much as 80 per cent of homes in parts of Sydney are being sold to Chinese buyers, said chief executive John McGrath....At a recent property auction in Eastwood, all 38 of the registered bidders were of Asian ethnic origin, Mr McGrath said. The three-bedroom house with a double lock-up garage and two sun rooms opening on to the back yard, sold for $2.39 million, more than $1 million over the reserve price, after 62 bids by eight hopeful buyers, according to the agent.
The median house price in Sydney is now about $700,000. I'm not sure how first home buyers are supposed to afford such a median price. Even if both a husband and wife work full-time they would have trouble paying the mortgage.
If we are to establish traditionalist communities somewhere, I doubt that it's going to be in Sydney. We need to find an area of cheaper land, build good quality housing, but then aim to keep the price of this housing as low as possible - as close as possible to cost price.