A home with solar panels
A home with solar panels on its roof is shown in a residential neighborhood in San Marcos, California September 19,2013. Well over 60 percent of solar systems in states like California and Arizona today are owned by a third party and financed, allowing homeowners to go solar by paying a monthly fee for panels instead of shouldering the $20,000 to $30,000 up front cost of a system. Photo taken September 19, 2013. Reuters/Mike Blake

With the mainland state capital cost increasing to another 0.4 percent on an average in a week, Sydney outperforms other cities in the list of increasing annual housing costs. According to the data released by CoreLogic RP Data, a housing market analytical company, the annual housing price growth was 11.3 percent for the week ending on Sunday.

Sydney has the highest record with a 17.7 percent increase, followed by Melbourne at 12.3 percent. Brisbane and Adelaide follow three and four percent increase respectively. Perth, on the other hand, recorded lower prices than last year’s.

According to AAP, the auction rate of clearance on a weekly basis on an average was 76.3 percent across the state capitals as well as Canberra. This is compared to 68.4 percent in the same week in 2014.

The Reserve Bank of Australia showed concern on the increasing value of land and homes that is making the public spend more on buying houses, which is threatening the national interest in several ways. “Given the position of household balance sheets, it is unlikely to be in our long-term interest for a consumption boom to be financed by a pick-up in household borrowing,” Deputy Governor Philip Lowe said during his speech in Perth on Wednesday.

The enhanced cost of houses and properties in Sydney is really a bad news for homebuyers. In July, Sydney was acclaimed as one of the best cities to live in. However, the cost of median houses being AU$1 million is too much for those who want to live in the city. Last year’s annual Quality of Life survey conducted by global affairs magazine Monocle said that Sydney had shifted up from its 11th spot to fifth on the list.

The parameters for the survey were the cost of three bedroom houses, levels of unemployment and beach proximity. However, with three bedroom houses available at around AU$929,000 in the inner and middle rings of Sydney, it has been indicated that buying a house for people with average annual income has now become difficult.

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