Sydney’s property market has long been considered a challenging reach for first home buyers, particularly in the most desirable area’s. Many young families are feeling the pressure of increasing prices, limited “affordable” supply, and sacrificing too much just to get a foothold on the property ladder.
However, there have been recent developments this year so far, including government incentives and shifts in market dynamics. Perhaps we may see new opportunities arise for prospective homeowners.
Sydney’s prices are the most expensive in the market, so are there any suburbs left with opportunities under $1million?
Sydney Property Market Overview
As of May 2025, Sydney’s median dwelling value stands at approximately $1,194,709, reflecting a modest 0.2% increase from the previous month and a 0.9% rise over the past year. While this indicates a stabilisation in property prices following a period of decline, the median value remains below its peak in September 2024.
Despite these fluctuations, Sydney’s property market continues to be among the most expensive in Australia, posing significant challenges for first home buyers. However, certain suburbs offer more affordable options, particularly for those considering units or houses in outer suburban areas.
Where can you buy under $1million in Sydney?
While Sydney’s overall property prices are high, several suburbs offer median house or unit prices under $1 million, presenting viable options for first home buyers.
One of the most notable criteria is the distance from the CBD. If you have the ability to work from home, or your place of employment is not in the CBD, you are at an advantage to sacrifice the proximity to the ‘hustle and bustle’ of the city to obtain a home under $1million.
If proximity to the city is important to you, then your best options would be Hoxton Park at 35kms,or Lalor Park at 30kms of the CBD and provide opportunities for home ownership.
|
Suburb |
Median House Price |
Distance from CBD |
|---|---|---|
|
Bardia |
$1,000,000 |
~50 km |
|
Hoxton Park |
$1,000,000 |
~35 km |
|
Lalor Park |
$1,000,000 |
~30 km |
|
Jordan Springs |
$990,000 |
~55 km |
|
Mount Riverview |
$990,000 |
~70 km |
|
Winmalee |
$976,500 |
~70 km |
|
Kariong |
$963,000 |
~75 km |
|
Windsor |
$960,000 |
~50 km |
Affordable Units in Sydney under $1million.
For those considering unit purchases, several suburbs offer median unit prices under $1 million with a contract between the upper and lower end of the market:
Upper end of the unit market:
- Darlinghurst: Approximately $914,000.
- Newtown: Approximately $813,500.
Lower end of the market:
- Kingswood: Approximately $560,000.
- Lakemba: Approximately $456,000.
It is important to keep in mind, there is a vast contrast between these units. They will be varying in size and amenities, condition, and strata fees. However, they still provide an accessible entry point into the Sydney property market for first home buyers.
Challenges and Considerations
Despite these opportunities, first home buyers face several challenges:
- Deposit Requirements: The need for a substantial deposit remains a significant barrier, with many young buyers relying on financial assistance from family members.
- Interest Rates: While recent interest rate cuts have improved borrowing capacity, they also have the potential to drive up property prices, increasing competition and making affordability more challenging.
- Market Dynamics: The property market’s cyclical nature means that prices can fluctuate, and market conditions can change rapidly, affecting affordability and accessibility.
Government Grants and Incentives for First Home Buyers
The New South Wales (NSW) government provides several initiatives aimed at assisting first home buyers:
- First Home Owner Grant (New Homes): Offers a $10,000 grant for purchasing a newly built home, off-the-plan property, substantially renovated property, or vacant land intended for construction.
- First Home Buyer Assistance Scheme: Provides exemptions or concessions on stamp duty for eligible first home buyers, depending on the property’s value and location.
- First Home Super Saver Scheme: Allows individuals to save for their first home within their superannuation fund, benefiting from concessional tax treatment.
These programs are designed to alleviate some of the financial burdens associated with purchasing a home, making homeownership more attainable for first-time buyers.
Is purchasing in Sydney still an attainable goal?
While Sydney’s property market presents significant challenges for first home buyers, government grants and incentives, along with more affordable suburbs and units, offer viable pathways to homeownership.
Prospective buyers should carefully consider their financial situation, eligibility for assistance programs, and the long-term implications of property ownership.
With informed planning and strategic decision-making, achieving homeownership in Sydney remains an attainable goal. However, if you have raised a significant deposit but are still struggling to meet the requirements to attain a house, then another option for you might be to “rent vest” , where you buy a property in a location you can afford but rent the home that you want to live in. This is a great way to get into the property market.
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