Sydney property

Australia’s property boom shows no sign of slowing down

PHOTO: Prospective buyers line up at 12 Manchester Street in Dulwich Hill. Price guide $1.2m, sold for $1.36m. Photograph: Blake Sharp-Wiggins/The Guardian

Prospective buyers increasingly complain that price guide underquoting is rife as Sydney property prices skyrocket

Every three or four weeks, the neighbours say, the scene is the same. It is a cold Saturday morning in Dulwich Hill in Sydney’s inner west, and dozens of hopeful buyers have turned out for an auction. It’s a two-bedroom house on a nice street, near the park. The price guide is $1.25m. The street is full, and every one is wary.

Michael and Tom, a young couple, are there – along with Michael’s family for support. They say that house hunting is “hell”.

“You could write 20 pages on the young people [who can’t get into the market],” Michael’s mum tells Guardian Australia.

“One auction last weekend went for about $400,000 above [the price guide],” Michael says. “So, it’s been hell. Pre-approval takes forever now. And it’s just, well, the guides are ridiculously low. For every property. Every property.”

As Sydney’s property prices skyrocket, rising a record 8.5% in only the past three months, prospective buyers increasingly complain that price guide underquoting is rife in the industry.