New CoreLogic figures have painted a more stable picture of the Australian housing market but saving for a house deposit can still take up to ten years to achieve.
The July CoreLogic Hedonic Home Value Index shows the median property prices across each capital city. Sydney still dominates the property market with a median property value of $775,978.
Melbourne follows close behind at $619,443. Both capitals saw growth of 0.2 per cent over the month.
CoreLogic head of research, Tim Lawless said:
“Our national dwelling value index may have found a floor in July, with dwelling values holding firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year. Since peaking, the national index is down 8.3%.”
Time taken to save for a deposit
Time taken to save based on this weekly deposit | |||||
Capital city | Median property price | Total upfront costs | $200 | $400 | |
Sydney | $775,978 | $126,876 | 10 years 11 months | 5 years 9 months | |
Melbourne | $619,443 | $109,289 | 9 years 6 months | 5 years 0 months | |
Brisbane | $484,998 | $66,022 | 5 years 11 months | 3 years 1 month | |
Adelaide | $427,009 | $68,572 | 6 years 2 months | 3 years 2 months | |
Perth | $441,275 | $67,563 | 6 years 1 month | 3 years 2 months | |
Hobart | $451,191 | $69,942 | 6 years 3 months | 3 years 3 months | |
Darwin | $395,119 | $63,272 | 5 years 9 months | 2 years 11 months | |
Canberra | $586,535 | $88,101 | 7 years 10 months | 4 years 1 month | |
Source: RateCity.com.au, CoreLogic Hedonic Home Value Index
Note: Total deposit figures factor 10% deposit, plus stamp duty and LMI for non-first home buyer. Time taken to save based on savings account paying 2% interest p.a.
RateCity research has found that it still takes over ten years to save a deposit for a median priced property in Sydney when putting $200 each week into a savings account (paying 2 per cent interest).
It’s a similar story in Melbourne, with homebuyers waiting nine and a half years to afford a property deposit.
Saving for a property deposit in Brisbane and Darwin is the most time-effective, whether you can afford $200 or $400 a week. This is thanks to Brisbane’s affordable stamp duty prices and Darwin’s low property prices.
How you can speed up your saving time
There are a few ways you can save a property deposit a little faster:
- Move back in with mum and dad: If you’re looking for your first home, moving back to mum and dad’s can be a very cost-effective way to live. Put what you would have spent on rent into a high interest savings account and fast track your way into getting out of your parents’ house and into your new home.
- Move interstate: If you’re lucky enough to have flexibility within your career and/or if your family are able to, moving interstate is an easy way to cut down on the deposit saving grind. Just by travelling from Sydney to Perth, for example, you’re shaving almost five years off of your wait time.
- Compare high rate savings accounts: With savings account interest rates being slashed by most lenders following the two RBA-led cash rate cuts, finding a high rate paying savings account can feel like looking for a needle in a haystack. More than ever it is crucial you do your research around the most competitive savings accounts for your financial needs, so you can save for a deposit faster.
Company | Product Online Saver Real Time Rating™ Winner of Best Standard Savings Account, RateCity Gold Awards 2022 | Maximum rate  2.10 % p.a intro 4 months then 1.10% | Base rate 1.10 % p.a | Maximum monthly interest $20 | Real Time Rating™ | Go to site | Winner of Best Standard Savings Account, RateCity Gold Awards 2022 |
Company | Product Smart Saver Account Real Time Rating™ | Maximum rate 2.00%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $29 | Real Time Rating™ | Go to site | Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions. |
Company | Product Future Saver Account (Under 35) Real Time Rating™ | Maximum rate 3.00%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $43 | Real Time Rating™ | Go to site | Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions. |
Company | Product Savings Maximiser Real Time Rating™ Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022 | Maximum rate 2.10%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $30 | Real Time Rating™ | Go to site | Customers must complete the following each month: 1. Deposit at least $1,000 from an external source; 2. Make 5+ settled card purchases; and 3. Grow the balance on the nominated Savings Maximiser account – i.e. make sure there’s more in the account at the end of the month (excluding interest) than there was at the end of the previous month. Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022 |
Company | Product Virgin Money Boost Saver Real Time Rating™ Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022 | Maximum rate 2.00%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $29 | Real Time Rating™ | Go to site | special Deposit $2,000 or more into your Virgin Money Go Account from an external account and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month.The maximum rate is made up of the variable Base rate of 0.05%p.a., Bonus rate of 1.45%p.a. and the Notice Interest Rate of 0.50%p.a. To receive bonus interest of 1.45%, deposit $2,000 or more into your Virgin Money Go Account from an external account, and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money. Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022 |
Company | Product Virgin Money Boost Saver (< 18 years) Real Time Rating™ | Maximum rate 2.00%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $29 | Real Time Rating™ | Go to site | If you are between 14 - 17 years, no Monthly Criteria apply in order to earn the Bonus Interest Rate of 1.45%. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money. |
Company | Product Virgin Money Boost Saver (18-24 years) Real Time Rating™ Winner of Best Savings Account Young Adults, RateCity Gold Awards 2022 | Maximum rate 2.00%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $29 | Real Time Rating™ | Go to site | special Deposit $2,000 or more into your Virgin Money Go Account from an external account and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month.To receive bonus interest of 1.45%, deposit $1,000 or more into your Virgin Money Go Account from an external account, and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money. Winner of Best Savings Account Young Adults, RateCity Gold Awards 2022 |
Company | Product Virgin Money Grow Saver Real Time Rating™ | Maximum rate 1.50%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $21 | Real Time Rating™ | Go to site | The maximum rate is made up of the variable Base rate of 0.05%p.a., Bonus rate of 0.95%p.a. and the Notice Interest Rate of 0.50%p.a. To receive bonus interest of 0.95%, make at least 1 deposit into your Grow Saver and make no more than 1 withdrawal (including any internal transfers or Pay Someone transfers) out of your Grow Saver each month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money. |
Company | Product Bonus Saver Account Real Time Rating™ Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022 | Maximum rate 1.60%* % p.a | Base rate 0.05 % p.a | Maximum monthly interest $23 | Real Time Rating™ | Go to site | Bonus interest is paid on balances up to $250k when a customer has made an eligible deposit of $20 into the Bonus Saver account in the calendar month and made 5 eligible Visa card purchases on the linked Everyday or Glide account in the calendar month Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022 |
Company | Product Kids Saver Real Time Rating™ | Maximum rate 2.20%* % p.a | Base rate 1.00 % p.a | Maximum monthly interest $32 | Real Time Rating™ | Go to site | when at least $5 per month is deposited and no withdrawals made |
Company | Product Youth Reward Saver Real Time Rating™ | Maximum rate 1.75%* % p.a | Base rate 0.50 % p.a | Maximum monthly interest $25 | Real Time Rating™ | Go to site | Make at least one deposit of $10 or more and make no withdrawals during the same calendar month |
Company | Product Kids Dollaroo Savings Real Time Rating™ | Maximum rate 1.50 % p.a | Base rate 1.50 % p.a | Maximum monthly interest $21 | Real Time Rating™ | Go to site | |
Company | Product Young Achiever Account S50 Real Time Rating™ | Maximum rate 1.30%* % p.a | Base rate 0.50 % p.a | Maximum monthly interest $18 | Real Time Rating™ | Go to site | Make one deposit and no withdrawals per calendar month |
Company | Product Retire Style Account Real Time Rating™ | Maximum rate 0.85 % p.a | Base rate 0.85 % p.a | Maximum monthly interest $12 | Real Time Rating™ | Go to site | |
Company | Product Dynamo Kids Savings Account S24 Real Time Rating™ | Maximum rate 1.70%* % p.a | Base rate 0.40 % p.a | Maximum monthly interest $24 | Real Time Rating™ | Go to site | Make a minimum deposit of $20 per month with no withdrawals |
Company | Product Dynamo Kids Savings Account s24 Real Time Rating™ | Maximum rate 1.70%* % p.a | Base rate 0.40 % p.a | Maximum monthly interest $24 | Real Time Rating™ | Go to site | Make a minimum deposit of $20 per month with no withdrawals |
Company | Product Pension Account S9 Real Time Rating™ | Maximum rate 1.00 % p.a | Base rate 1.00 % p.a | Maximum monthly interest $14 | Real Time Rating™ | Go to site | |
Company | Product Zoo Account Real Time Rating™ | Maximum rate 1.30%* % p.a | Base rate 0.10 % p.a | Maximum monthly interest $18 | Real Time Rating™ | Go to site | Deposit at least $10 a month and make no withdrawals |
Company | Product Bonus Saver Account Real Time Rating™ | Maximum rate 0.75%* % p.a | Base rate - % p.a | Maximum monthly interest $11 | Real Time Rating™ | Go to site | Make one deposit per month and no withdrawals |
Company | Product iSaver Real Time Rating™ | Maximum rate 0.76%* % p.a | Base rate 0.35 % p.a | Maximum monthly interest $11 | Real Time Rating™ | Go to site | Minimum deposit of $200 a month |
