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Bad news for first home buyers: average house prices to hit $7 million by 2030 in Sydney as property values continue to grow

Daily Mail logo Daily Mail 2 days ago Louise Ayling
a large clock tower towering over a city: House prices in Sydney are set to grow even further, potentially doubling in the next three decades © Provided by Daily Mail House prices in Sydney are set to grow even further, potentially doubling in the next three decades

The average house price in some of Sydney's wealthiest suburbs could jump to $7 million in the next ten years, figures show. 

While prices in the greater Sydney area like the Blue Mountains or Central Coast could rise to about $1.74 million.

The forecast is part of economic modelling by market analyst Aiden Devine, based off an analysis of Corelogic data and figures by the Australian Bureau of Statistics.

House values in the harbor city have grown an average 6.8% a year over the past three decades, while unit prices grew about 6.4%.

That growth is likely to continue because of a shortage of buildable land, and restrictions around zoning in certain local government areas.

CoreLogic head of research Tim Lawless told Devine, it's the already wealthy areas which will see the greatest price spike.

'These areas are blue chip real estate and have been (leading) the real estate market recovery … they tend to be the areas that grow first,' he said.

That means Bellevue Hill, Vaucluse and Point Piper could have some of Australia's highest average prices by 2030, at almost $7.5 million.

While the lower north shore and northern beaches are likely to see prices around $6.8 million and $5 million respectively.

a flock of birds sitting on a dock next to a body of water: Houses in areas like Point Piper (pictured) could reach a median price of $7million by 2030 © Provided by Daily Mail Houses in areas like Point Piper (pictured) could reach a median price of $7million by 2030

The property growth won't be limited to the blue chip areas either, with the value of homes in the Penrith council area forecast to grow from about $650,000 to $1.26 million in 2030.

For those losing hope in entering the property market, there is always the option of buying a unit- but those are predicted to rise from $695,000 to $1.24 million over the same period.

  
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