This $1.6 Million Shit Hole Is A Reminder Of How Cooked Sydney’s Housing Market Is

New data on Australia’s housing market was released yesterday and — guess what — prices have gone up… again.

The latest figures, shared by leading property data provider CoreLogic, show that Australia’s house prices were up by 2.2 percent in May, and have risen more than 10 percent since the pandemic first hit.

The data shows that every Australian capital city saw an increase in house prices but — to no one’s surprise — Sydney is continuing to drive up the national average price.

In Sydney, prices jumped 3 percent last month with the median house value climbing by roughly 15.1 per cent. The average house price was estimated to be around $1.186 million. 

What Can That Actually Buy You?

A pile of crap terrace, if this realestate.com.au listing is anything to go off.

The listing describes the Darlinghurst property as a “labour of love” that despite being a “work in progress, [is] now ready for someone to take over”.

Oh, and the buyer guide is set at $1.68 million.

A recent Guardian Australia report found that 29 out of 30 Sydney properties sold during May went for over the price that was publicly disclosed — in some cases by up to $600,000 — which means this shit hole is extremely likely to sell for more than that amount.

But would you look at that charm?

This Isn’t A New Phenomenon

Disheveled Sydney properties have been selling for ridiculous amounts of money for years.

The “worst house” in the best street — AKA one of the richest suburbs in Sydney, Bellevue Hill – sold for $5.4 million in November last year. And this pile of crap house sold for $1.1 million in 2016, even though it had housed a dead body for eight years.

According to CoreLogic, one of the reasons house prices have soared so quickly is because there aren’t as many houses on the market in comparison to buyers, who are making the most of low interest rates. The lack of properties for sale ultimately means there’s a much higher demand for housing.

“This imbalance between demand and supply is continuing to create urgency among buyers, contributing to the upward pressure on housing prices,” said research director Tim Lawless.

But one good thing to come out of the rapid house price boom — which has really thrived during COVID-19 — is that some experts are expecting the surge to fall next year.

(Images: Bresic Whitney Estate Agents – Darlinghurst)