Sydney’s median house price has soared by around 550% from 1993 to 2022—a staggering increase. But raw numbers don’t tell the full story. What we’re selling today is vastly different from 30 years ago.
Property Prices Are Up 550% Since 1993—But Are We Still Selling the Same Homes?
Sydney’s median house price has soared by around 550% from 1993 to 2022—a staggering increase. But raw numbers don’t tell the full story. What we’re selling today is vastly different from 30 years ago.
We’re Not Comparing Apples With Apples
Sydney’s housing stock has evolved. In the early ’90s, it was common for homes to hit the market in largely original condition. In contrast, today’s properties are more likely to be extensively renovated—or completely rebuilt.
What’s more, the average Australian home has grown in size by around 150% since 1950. Buyers now expect open-plan living, multiple bathrooms, premium kitchens, and smart home features. For example, Domain data for Bondi shows a sharp rise in the sale of four-bedroom homes in the past five years—reflecting this demand for scale and quality.
When these upgraded or rebuilt homes sell, they’re simply not the same assets they were a decade or two ago. The price reflects not just land and location, but the hundreds of thousands invested in improvements.
Scarcity and Segmentation
While houses are becoming larger and more luxurious, apartments are filling the gap in supply. Between 2001 and 2021, 1,348 new dwellings were built in Woollahra, the majority of them apartments.
However, apartments haven’t diluted house values. In fact, the opposite has happened. Many renters who settle into a suburb through apartment living later look to upgrade locally. That creates upward pressure on house prices.
In 1993, the gap between Sydney’s median house and apartment prices was just 15%. Today, it’s 58%—clear evidence that house prices have outpaced apartment growth.
Population Growth = More Competition
Sydney’s population grew from 3.7 million in 1993 to over 5.1 million today—a 37% increase. More people means more competition. A property that attracted five serious buyers in 1993 might now have seven—although demand isn’t distributed equally across all price brackets.
Incomes, Mortgages, and Borrowing Power
In 1993, full-time workers earned $31,085 annually. By 2022, that figure had climbed to $95,430—a 307% rise. That growth, combined with a shift in mortgage rates, has changed borrowing power significantly.
Back then, an 80% home loan on the median house at 9.92% interest cost around $302 a week—around 50% of average earnings. Today, borrowing 80% of the median house price at 4.79% interest costs $1,181 a week, or 64.4% of earnings.
The median apartment is more accessible. At 2022 prices, an 80% loan on a $772,807 apartment costs $747 a week, or just 40.7% of median income—easier to service than a loan in 1993.
So, What Does It All Mean?
Yes, homes cost more today—but they’re also bigger, better, and more refined. And while servicing a mortgage on a house is harder than ever, entering the market via apartments may actually be easier today than it was in 1993—if you can save the deposit and adjust your expectations.
Curious About What This Means for You?
If you’re considering buying or selling in Sydney’s Eastern Suburbs, we’d be happy to provide insights tailored to your property and goals. Let’s talk.
