Detached homes in city centres out of reach for most buyers
A recent analysis by property listing firm Domain has identified a significant mismatch between the prices of detached houses in inner-city areas and the budgets of prospective buyers in Australia’s capital cities.
The Matching Demand Report, which examines millions of buyer price searches alongside actual property listings, reveals that the gap between what buyers can afford and current market prices is most pronounced for houses located near central business districts.
In Canberra’s inner ring, for instance, the median listing price is $712,000 higher than the typical search budget. Similar disparities exceeding $300,000 are evident in the inner suburbs of Sydney, Brisbane, and Melbourne.
Townhouses are emerging as a viable alternative, particularly in the middle and outer rings of Brisbane, Adelaide, and Perth, where buyer budgets often surpass median listing prices. This trend indicates increased demand for this property type.
Units are most closely aligned with buyer budgets, suggesting that purchasers unable to afford houses are increasingly considering high-quality apartments. Sydney stands out as the only capital city where house prices exceed buyer budgets across the entire metropolitan area, with even the outer suburbs showing a $280,000 gap.
“The dream of a detached, inner-city house has become unattainable for many buyers, with affordability gaps into the hundreds of thousands evident in every capital city,” said Nicola Powell, chief of research and economics at Domain.
“Buyers are shifting towards more affordable, medium-density housing, like townhouses and premium apartments. For developers and policymakers, this signals a pressing need for more supply in these segments to meet real buyer budgets and demand.”
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