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The median price for a house in Sydney soared to $1,722,443 by the end of June, marking a 2.6% quarterly increase and a 4.2% rise year-on-year, according to Domain’s Q2 house price report.
This marks the city's fastest quarterly growth in two years and the third consecutive rise.
Alongside, unit prices hit a record $834,791, increasing by 1.5% over the same period.
A decade past, Sydney’s median house price was approximately $1 million, indicating a 70% increase, and two decades ago, it stood roughly at $550,000, showing a 220% rise. Currently, Sydney also leads the nation in median asking rents, with houses at $780 and units at $740 as of Q2 2025.
A recent analysis by Mark Litwin, Head of Investment Sales at Knight Frank NSW, underscores the inherent housing supply issues. He points out that population growth, primarily fuelled by overseas migration, significantly exceeds housing completions, creating a persistent shortage that supports house price inflation.
This diagnosis echoes projections from the National Housing Supply and Affordability Council (NSAC), which foresees New South Wales missing its housing target by 130,000 units over the next five years, largely due to net overseas migration.
In 2024, NSW's population surged by 108,000, with net overseas migration accounting for the vast majority-106,700. Over the preceding decade, 88% of the state’s population growth was attributed to overseas migration, compounded by migrant birth rates.
Experts argue the root of New South Wales's housing shortfall is excessive net overseas migration. Thus, it is recommended that the state government advocate for federal immigration policy adjustments to sustainable levels that can be readily integrated.
Critics claim that maintaining high migration levels will not alleviate the housing crisis, suggesting that other policy measures alone may be inadequate. Without addressing population growth, the housing market may continue to pressurise young Sydneysiders, prompting them to seek more affordable living elsewhere.
In a significant development for the Australian banking sector, ANZ has successfully completed its $4.9 billion acquisition of Suncorp Bank. This strategic move, finalised on 31 July 2024, marks a pivotal expansion for ANZ, enhancing its service offerings and market reach across the nation. - read more
The Australian mortgage market is witnessing a notable shift as non-bank lenders increasingly capture a larger share, challenging the dominance of traditional banking institutions. This trend is driven by digital innovation and evolving consumer preferences, leading to a more competitive landscape in home financing. - read more
In its latest monetary policy decision, the Reserve Bank of Australia (RBA) has opted to keep the official cash rate unchanged at 3.60%. This decision reflects the central bank's cautious approach in navigating the current economic landscape, balancing the need to control inflation with the goal of sustaining economic growth. - read more
Westpac Banking Corporation is undertaking a significant transformation, focusing on expanding its business lending capabilities to better serve Australia's small and medium-sized enterprises (SMEs). This strategic shift involves replacing traditional in-branch tellers with dedicated bankers specialising in home and business lending, aiming to provide more personalised and efficient services to business clients. - read more
Loan Market Group's (LMG) Asset Finance Exchange (AFX) has achieved a significant milestone, reporting approximately $80 million in settlements within its inaugural year. This accomplishment underscores the increasing demand for asset finance solutions among Australian small and medium-sized enterprises (SMEs). - read more
Understanding the Debt-to-Income Ratio (DTI) is a crucial step toward solidifying your status as a creditworthy loan applicant. DTI is a key determinant used by lenders to gauge your ability to manage monthly payments and repay debts. It's essentially a numerical comparison between your total monthly debt and your gross monthly income, serving as a beacon of your financial health to potential creditors. - read more
Understanding your credit score is crucial, especially when you're looking to secure a loan. Whether it's for a home, a car, or personal use, a good credit score can make a significant difference in the type of loan you qualify for and the interest rates you'll be offered. - read more
Understanding your borrowing power is an essential step for anyone looking to take out a loan. This concept represents the amount of money you're eligible to borrow from a lender, whether it’s for purchasing a home, a car, or investing in your future. Knowing your borrowing power not only sets realistic expectations but also guides you in financial planning and budgeting for your loan repayments. - read more
Welcome to the beginning of your financial journey. As an Australian, understanding the nuances of financial planning is pivotal to securing your economic future. Whether you're applying for your first loan or on the cusp of retirement, the financial decisions you make will have a lasting impact on your life. This guide aims to walk you through each stage, providing practical advice that you can apply to your own circumstances. - read more
Loan management skills are crucial for individuals and families in Australia, as they play a vital role in managing finances and achieving financial stability. Effective loan management enables individuals to make sound financial decisions and avoid falling into debt traps. This article aims to highlight the importance of acquiring loan management skills and how it can benefit Australians. - read more
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Knowledgebase
Index Fund: A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.