11.02.2023 Local News

Sydney’s Paddington Has The Most Expensive Land In Australia

Sydney’s Paddington Has The Most Expensive Land In Australia

Paddington tops the list for having the most expensive land in the country per square metre.

We look at why and what it means.

Sydney’s Paddington may not have the city’s highest suburb records or the city’s highest median prices. However, last year, it topped Domain’s list of suburbs with the highest median price per square metre of land.

How much does just one square metre of land cost in Paddington?

According to Domain, Paddington recorded the highest median price per square metre of land at $25,755 a square metre. This compares to a Sydney-wide median of $2,466.

To put that in perspective, land in Paddington is more than ten times more valuable than the city median.

What about the rest of the Eastern Suburbs?

The price of land per square metre varies across the Eastern Suburbs depending on block size and housing type. However, all suburbs top $10,000 a square metre, and no fewer than six come in over $20,000 per square metre, as the table below shows.

Suburb Value of Land per Square Metre
Paddington $25,755
Tamarama $25,684
Darlinghurst $22,623
Edgecliff $20,551
Woollahra $20,371
Surry Hills $20,241

Why does land value matter?

Land values can be an important measure of how much the property market is really growing.

As Domain’s Chief of Research and Economics, Nicola Powell, says: “The thing that appreciates over time is the actual dirt…and where that land sits, and with growing population and urban density increasing, it means the price of land over time is going to keep increasing”.

In the past decade, land value per square metre across Sydney has increased by 140%, which Domain says shows just how much demand has outstripped supply.

While Domain’s values are based on sales prices, separately, the Valuer General of NSW issues annual land value notifications to owners based on their own methodology. These impact land tax and council rates. The Valuer General’s historical trends data shows land values on Boundary Street Paddington rising from $148,000 in 1996 to $1,700,000 in 2022. Over the last 12 months alone (2021-2022), Boundary Street land has experienced a massive rise of 23%.

What factors are at play in Paddington’s land prices?

Paddington has been popular for decades, and its star is rising still. Paddington’s proximity to Centennial Park, Bondi Junction, the city and the beaches make it a major drawcard. So do its vibrant village and picturesque streets that constantly seem to reinvent themselves.

Paddington is a destination for dining, cafes, boutiques and homewares. It has fabulous schools, a charming, tree-lined Victorian streetscape, and all the buzz you could want from inner city living.

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It’s this proximity to the city, and coveted amenities, that pushes land prices higher.

However, another major thing contributing to Paddington topping the price per square metre list is the fact that its residential blocks are smaller.

The median Paddington block size is just 125 square metres. This compares to 183 square metres in Queens Park ($17,655), 235 square metres in Bondi Beach ($15,675), 310 square metres in Double Bay ($17,291), 600 square metres in Vaucluse ($14,286) and even 644 square metres in Bellevue Hill ($13,619).

Spotlight on Paddington

According to realestate.com.au data, house prices in Paddington have already risen 8% over 2023 to reach $3,207,698.

While the median unit price is much more reasonable at $840,000, the current suburb record was set this year at $20 million for an apartment at 10/18 Flinton Street, Paddington.

Our current listings in Paddington

26-28 Roylston Street, Paddington
A sleek three-bedroom warehouse conversion offering 275 square metres of living space and parking, moments from Trumper Park.

155 Windsor Street, Paddington
A classic 1889 terrace on a 208 square metre parcel offering three bedrooms, heritage charm, and off-street parking for two cars in a great location.

36 Stafford Street, Paddington
With a blue-ribbon location and DA-approved plans, this two-bedroom semi on 120 square metres offers huge potential.

1 Goodhope Street, Paddington
A very rare opportunity to own a beautifully re-imagined studio home nestled behind a heritage facade. It spans just 56 square metres in the centre of Paddington.

Want more?

Looking for more advice about selling your property in Sydney’s eastern suburbs this spring? My team and I are here to help – get in touch today.