We all know a million dollars doesn’t buy much in Australia’s biggest city these days. And there have been plenty of comparison stories on what you can get for a million US dollars in different property markets around the world.
But comparisons that dramatically expose just how expensive Sydney property is compared to other places in the world still leave people stunned. Recently on Facebook, radio duo Kyle and Jackie O posted some comparisons of what a million Australian dollars can buy you in Sydney suburbs, and what it can do for you in France.
Their post claims a $2 million cheque will get you a cramped terrace in Paddington, while in France it could buy a chateau with sprawling gardens.
Here’s a few of the outrageous differences.
It might seem unbelievable, but last year Business Insider found nine European castles listed for $1 million – the average price of a three-bed house in Sydney.
We’ve also looked at median house prices in suburbs with the richest residents.
Based on lending calculators from Westpac and Aussie Home Loan buyers, last year we found that a buyer would need an average of $2,026,7000 to purchase property in places such as Point Piper, Mosman, Hunters Hill or Vaucluse.
And these prices have increased in the past 12 months with the heat on in the Sydney property market.
Just before Christmas, analysts CoreLogic RP Data said combined capital city home values increased in 2014 by 8.5% with house values up 8.9% and unit values rising by 5.9%.
“As always, there were certain areas across the country that have well and truly outperformed others,” CoreLogic RP Data said.
But there are signs people are getting wary of the price appreciation in Sydney.
In the Nine Rewards Consumer housing market sentiment survey, also by RP Data, 66% of respondents “felt that now was a good time to buy a property”, but also 68% said they felt “Australia’s housing market was vulnerable to a significant correction”.
This confusion could explain why Australian households are not seeing the “wealth effect” in the manner that they have in the past, and in the way the RBA expected.
Business Insider’s markets and economics correspondent, Greg McKenna, has more on that here.