Under the scheme announced by Premier Dominic Perrottet,teachers,nurses,police,single parents and older singles (aged over 50) will be able to co-purchase a property,with the government stumping up 40 per cent of the cost of a new build or 30 per cent of an existing one.
The price cap,or maximum value,of a co-purchased property is $950,000 in Sydney and in pricey regional suburbs on the Central Coast and North Coast,Illawarra,Lake Macquarie and Newcastle. In other parts of NSW,the cap is $600,000.
So,what does that mean in terms of where eligible buyers could afford to purchase?
Domain’s latest house price report shows buyers searching for suburbs with a median house price of $950,000 will have to go to postcodes such as Prospect,Minchinbury and Quakers Hill,all at least 30 kilometres from the CBD.
There are houses for sale such as a brick three-bedder at,which is priced between $870,000 and $920,000.
Those looking for a regional property could go to the Central Coast,where a stylishly renovated three-bedroom home at is for sale with a guide of $899,000. The area has a median $942,500,according to Domain.
On the South Coast,a house at is listed for $880,0000 – with the area registering a median of $947,500.
Those wanting a home closer to the city will need to compromise,given Sydney’s median house price is around $1.56 million.
Apartments within the price cap can be found in Surry Hills or Rushcutters Bay,both less than five kilometres from the city centre,where the median sits at $950,000.
For that money,buyers can find a stylish two-bedroom apartment at,which also has a car park.
Those after a cheaper buy can look to the rest of NSW,including areas such as Bathurst,which has a median of $590,000 and where buyers can find a three-bedroom house at asking $545,000 to $575,000.
Domain chief of research and economics Dr Nicola Powell said while the scheme would allow buyers to get into the market,it would most likely push essential workers towards apartments rather than houses,to live close to where they work.
“It’s really a policy that’s driving demand towards units,but with that demand side,even for houses,there needs to be a supply side as well,” Powell said.
“When you look at Sydney,it is one of the most expensive cities to buy property in,but it is also one of the least dense in terms of housing.
“I think what we need is a reduction of red tape to allow more building. That includes regional areas where house prices have soared.”
While the price caps were the same as the federal government’s Help to Buy scheme,the NSW scheme aimed to help essential service workers to live closer to work,and older people who were at higher risk of homelessness.
With 3000 places available each year for two years,the scheme would offer eligible buyers in NSW that extra chance to buy,with the federal scheme offering 10,000 places shared across the country.
“Key workers are the backbone of our society and they can’t work from home – they have to be in close proximity to their work,so it is really great that the government is prioritising these essential workers,” Powell said.