The median Sydney property price has risen by over 550% in the past 30 years. In 1993, the median house price in Sydney was $188,050. Today, it is $1,036,727.
However, there are a few suburbs in Sydney’s Eastern Suburbs where homes have outperformed even this impressive statistic.
What are the three suburbs that have grown the most since 1993?
Despite price increases in all suburbs over the past 30 years, North Bondi, Clovelly, and Bronte have all seen growth of over 1,500%.
A standout among these stellar performers is Bronte – its house prices rose an incredible 1,702% in the past year.
| Suburb | Median value 1993 | Median value today | Difference |
| North Bondi | $295,000 | $4,547,125 | 1,514% |
| Clovelly | $273,000 | $4,290,000 | 1,571% |
| Bronte | $358,500 | $6,100,000 | 1,702% |
Beaches continue to rise
Supply and demand determine property prices. Real estate can only ever sell for whatever people are willing to pay.
The price growth of these suburbs has been largely fueled by property-related trends in the last 30 years.
First, beaches are becoming increasingly popular – which, of course, is where every one of our 1,500% suburbs is located.
Compared to 30 years ago, when people valued a large backyard in the suburbs, more and more people longed for life by the sea. And if you could get a big backyard by the sea, that would be even better. As a result, the beaches became fashionable, with once working-class neighbourhoods becoming highly sought after.
As a result, demand rapidly increased, and prices rose accordingly.
A good example of this phenomenon – that the beachside outperforms other property markets – is Coogee (1,227%), even though it didn’t quite make the 1,500% mark. There were also exceptional performances in Manly (1,315%) and Freshwater (1,580%) north of the Harbour.
There is no denying the attraction of the East
Moreover, there is the reality that the Eastern Suburbs have always been in demand – and probably will continue to be. You can get everything you need in the East – from the best parks, beaches, cafes, restaurants and nightlife – right from the city, harbour, airport and transport links.
Therefore, it tends to outperform more general markets since people always want to live there.
The housing stock is changing
Over the past three decades, Clovelly, Bronte and North Bondi’s housing stock has changed dramatically, something that we feel is often overlooked in any analysis of changing prices.
It’s hard to find a family home on the Eastern Beaches that hasn’t been extensively renovated or even knocked down and rebuilt since 1993.
Growing wealth
In the last 30 years, Sydney has gotten much wealthier – or at least its number of rich people is growing, and so is the gap between rich and poor.
Because of this, more people can afford to live in prestigious suburbs now than they were in the past, especially compared to others. There’s no doubt that the Eastern Beaches have become prestige suburbs, with median house prices registering at least four times Sydney-wide averages (or six times for Bronte).
Supply shortages
Additionally, all those people who wanted to relocate to the beaches needed to find homes – but there were few available. It is difficult to find enough family homes in this area, and there are virtually no new parcels of undeveloped land on which to build, as there are many other parts of Sydney that have enough empty land to accommodate everyone.
In other words, supply has not kept up with demand.
Looking forward
Lifestyle is becoming more and more important to people when it comes to searching for properties.
We anticipate greater competition in the beachside property market once interest rates stabilize and a greater level of confidence returns.
