The Property Game Has Changed — But the Prize Is Still There by Alan Weiss
For decades, the Australian dream was simple: work hard, buy a home, and you’ll be better off than your parents.
For Baby Boomers, that was possible — even in sought-after suburbs like Bondi and Dover Heights.
For today’s young buyers, the dream is still there, but the climb is much steeper.
Homeownership Is Slipping
- 1981: 66% of Australians aged 30–34 owned their home.
- 2021: That dropped to 49%.
- For 25–29-year-olds, it fell from 50% in 1971 to just 36% in 2021.
This isn’t about ambition — it’s about affordability.
Then vs. Now: Bondi & Eastern Suburbs Prices and Affordability
Early 1990s
| Property | Price | Deposit (20%) | Loan Amount | Interest Rate | Monthly Repayments | Income Needed* |
|---|---|---|---|---|---|---|
| Ocean St apartment (2-bed) | $250,000 | $50,000 | $200,000 | ~10% | ~$1,755 | ~$55,000 |
| Bondi semi-detached | $400,000 | $80,000 | $320,000 | ~10% | ~$2,808 | ~$75,000 |
| Plowman St house | $550,000 | $110,000 | $440,000 | ~10% | ~$3,865 | ~$95,000 |
| Dover Heights 6-bed w/pool/views | $900,000 | $180,000 | $720,000 | ~10% | ~$6,322 | ~$140,000 |
*Income needed based on banks allowing ~30–35% of gross income for mortgage servicing.
Today (2025)
| Property | Price | Deposit (20%) | Loan Amount | Interest Rate | Monthly Repayments | Income Needed* |
|---|---|---|---|---|---|---|
| Ocean St apartment (2-bed) | $1.5M | $300,000 | $1.2M | 6.25% | ~$7,395 | ~$190,000 |
| Bondi semi-detached | $3.25M | $650,000 | $2.6M | 6.25% | ~$16,022 | ~$400,000 |
| Blair St house | $6M | $1.2M | $4.8M | 6.25% | ~$29,573 | ~$700,000 |
| Kippara Rd Dover Heights | $10M | $2M | $8M | 6.25% | ~$49,288 | ~$1.15M |
The Upsizing/Downsizing Gap
1990s:
- Upgrading from a $250,000 unit to a $400,000 semi cost an extra $150,000.
- Moving from a semi to a $550,000 house was another $150,000.
- Downsizing later could free up hundreds of thousands in equity.
2025:
- Upgrading from a $1.5M unit to a $3.25M semi costs an extra $1.75M.
- Moving from a semi to a $6M house is another $2.75M.
- Downsizing can still free up equity — but transaction costs and entry-level prices are much higher.
The Power of Compounding Growth (4% p.a. for 10 Years)
| Property | 2025 Value | 2035 Value (4% p.a.) | Capital Gain |
|---|---|---|---|
| Ocean St apartment (2-bed) | $1.5M | $2.22M | $720,000 |
| Bondi semi-detached | $3.25M | $4.8M | $1.55M |
| Blair St house | $6M | $8.88M | $2.88M |
| Kippara Rd Dover Heights | $10M | $14.8M | $4.8M |
What’s Changed for Young Buyers
Baby Boomers bought when:
- Prices were 3–4× household income.
- Deposits could be saved in a few years.
- Each step up the ladder was a manageable leap.
Today’s buyers face:
- Prices 8–12× household income.
- Deposits that can take a decade to save without help.
- Much larger jumps between property types.
Is Property Still the Path to Wealth?
Yes — but it takes:
- Strategic entry points (smaller properties, different suburbs, joint ventures)
- Long-term horizons to capture compounding growth
- Careful planning for upsizing or downsizing to release equity
Final Word from the Eastern Suburbs
For Boomers, buying in Bondi, Bronte, or Dover Heights was ambitious but doable.
For today’s buyers, it’s harder — but the rewards for getting in early are still enormous.
The rules have changed. The prize hasn’t.
If you want to be in the winners’ circle, start now — with a clear plan and the right advice.
