The cost of buying a luxury home in Australia is rising rapidly, and the trend is set to continue.

A new report by the Australian Institute of Water, Land and Resources Economics shows sapphods are set to become the most expensive property in the nation by 2020.

It says the cost of owning a home in Sydney will be $1.9 million by 2020, up from $1 million in 2018.

The index covers the cost for a median-priced home in the city, and shows the cost to buy one will more than double by 2032.

“The current level of interest rates in Australia has already been driving up the cost and it’s likely to continue doing so in the future,” economist Mark Pomeroy said.

“Given the current trend of the Australian housing market, the rise in house prices in 2018 was largely driven by increases in interest rates.”

The cost of purchasing a house in Sydney has increased from $3.4 million in 2006 to $2.5 million in 2020.

The cost to own a house has also increased from around $2 million to around $1 billion.

Topics:housing-industry,wealth-and-pensions,financial-market,business-economics-and/or-finance,property-industries,wealthwest-6306,sydney-2000Contact Andrew Lees