Sydney’s sky-high property prices have been attributed to a shortage of supply, generous tax breaks, cheap credit and ‘hot money’ from overseas investors.

A new report by independent property researcher SQM Research has revealed Sydney’s house values have jumped at over $1m, making the median price for a detached house 13 times the average wage.

A separate study by RP Data has supported the claim, saying an increase of nearly 60% in the area’s property prices has emerged since 2009.

"Sydney has shown the best gains of any capital city in Australia ... Very low interest rates have given prices a huge boost,” said Tim Lawless of RP Data.

Statistics from the International Monetary Fund also showed Australia holds the world’s third highest price-to-income ratio, after Belgium and Canada.

Such price hikes are making house hunting for people like Alastair Wilson so much harder in Sydney.

"I just need a roof over my head - preferably one I own," Wilson, a new said father, told BBC.  "I was used to astounding prices in London. However, Sydney prices made my jaw drop."
 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker