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Property market: Sydney is not safe as houses, median price today is $1 million

SYDNEY’S booming property market is due for a “sharp correction”, a global ratings agency has warned.

The city’s home prices have been growing at an average of more than 10 per cent a year for the past five years, with the median house price today now around a whopping $1 million.

But Standard and Poor’s believes the market may be about to hit its peak, citing the constant rise in Australian house prices over the past four years and ballooning levels of private sector debt.

S & P forecasts private sector debt will rise to about 136 per cent of gross domestic product next month, up from 117 per cent in 2013. Australia’s household debt is currently $2.1 trillion, with around 80 per cent of it in mortgages.