Abbey Smith said there was "no chance" her family could buy property in Sydney so they decided to move interstate. ·Source: Supplied
An Aussie mum-of-two has shared why her family made the “difficult decision” to leave Sydney as prices spiral. More Aussies are fleeing the major city in droves as they find themselves priced out of the ever-increasing property market.
Abbey Smith and partner John Wrenn relocated from Sydney to Melbourne late last year with their two young kids. The family had been renting in the Sutherland Shire, about an hour out of Sydney, having moved there from Coogee and later Ryde seeking more space for their growing family.
“We thought moving down to the Sutherland Shire which is closer to the beaches and a bit further away from Sydney we might be able to afford something,” Smith told Yahoo Finance.
The 39-year-old recruiter said townhouses in the area were selling for $1.5 million, with properties often selling for well above their price guide.
“We got our pre-approval for a mortgage and were hoping to buy there but the prices were going up, up, up,” she said.
Feeling “sick of renting” and keen to provide some stability for their kids, Smith said the couple made the difficult decision to uproot and relocate to Melbourne so they could buy their first home.
“It was a really big decision. We loved the Sutherland Shire as well, it would have been great for the kids,” she said.
“Being able to buy was the biggest factor. We just wouldn’t have had a chance in Sydney.”
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The family purchased a three-bedroom townhouse in Pascoe Vale for $945,000. ·Source: Supplied
Sydney median values hit $1,186,459 in February, CoreLogic found, up 0.3 per cent monthly and 1.1 per cent annually.
Melbourne values are sitting at $772,561, with prices inching up 0.4 per cent monthly but back 3.2 per cent annually.
February marked a streak of 10 consecutive months of falling home values for the city.
More Aussies fleeing Sydney for Melbourne
Buyers agent Emily Wallace said she had seen a notable rise in enquiries from Sydney residents looking to relocate to Melbourne since October, with the capital now “unaffordable for many people, especially families”.
“The sentiment of Melbourne being more attainable than Sydney seems to be more prominent in recent times,” Wallace told Yahoo Finance.
“And there’s a noticeable gap between the Sydney and Melbourne market in terms of what value you can get out of each area.”
Wallace said buyers were prepared to think outside the box to get into the property market, particularly if they had a flexible job that allowed remote work or relocation.
“People are valuing having lifestyle and choice and not just being absolutely locked to a mortgage where all your money goes pretty much towards it,” she said.
Buyers agent Emily Wallace said she'd noticed a trend of people moving interstate to Melbourne, where you can get more bang for your buck. ·Source: Supplied/Getty
A whopping 110,915 people left New South Wales to head interstate in the year to September, the latest Australian Bureau of Statistics data found.
When arrivals were subtracted from departures, the state lost 29,505 people through net interstate migration.
Victoria saw 74,095 interstate arrivals and 73,213 departures, with 882 new arrivals from other states on a net basis.
Queensland has remained the most popular destination, with 104,491 interstate arrivals during the year and 28,201 net arrivals.
Compare the Market research named Brisbane as the most cost-of-living friendly city in Australia, and the second best globally, based on factors like average wages, electricity prices and unemployment rates.
Melbourne placed second for Australia and seventh globally, while Sydney came in at number 13.
Wallace said she expects the Melbourne property market would become more competitive as interest rates drop so for those looking to buy it could be a case of “the sooner, the better”.
“For buyers who are local to Melbourne, they need to be aware that competition isn’t just in their own backyard, it’s definitely coming from interstate as well,” she said.
“I think we will continue to see a gradual increase in median prices in Melbourne across this year."
‘More options’ as couple nabs $945,000 home
Smith and Wrenn purchased a three-bedroom townhouse in Melbourne's Pascoe Vale for $945,000, which they secured off-market with Wallace acting as buyer’s agent.
“There’s just so many more options in Melbourne at different price points,” Smith said, noting they had a budget of $1.1 million and were looking on the north side.
The couple are now paying less for their mortgage than the $1,100 a week rent they had to fork out in New South Wales.
Smith said her partner’s director of operations job allowed him to relocate to Melbourne for his work, which also helped with their decision to move.
Smith meanwhile was able to work remotely initially but is now starting a new job and was able to secure spots at a new daycare for her kids.
“We’re really happy. It’s been an easier move than I thought. I thought it would be quite a change but I’ve found it to be easy,” she said.
“My kids have settled in really well. I’m starting a new job, my partner is still working for his old job, so there has been any sort of real stress on the work front for us.
“My sister’s here so it’s really good to be close to her and my nieces. We’ve been out and enjoying the city.”
