11.23.2022 Local News

The 1,500% Club

The 1,500% Club

We reveal four suburbs where prices have risen by more than 1,500% over the past 30 years.

We don’t have to tell you that Sydney property prices have increased incredibly in the past 30 years. In 1993, the median Sydney house price was $188,050. Today, it is $1,036,727 – or around 550% higher than it was back then.

But there are some suburbs where houses have outperformed even this impressive statistic. There are three here in the Eastern Suburbs that have gone close to trebling it or more.

Which three suburbs have grown the most since 1993?

While all suburbs have seen significant price rises over the past 30 years, North Bondi, Clovelly, and Bronte have all seen growth of over 1,500% since 1993.

And, even among these stellar performers, Bronte is a standout – topping the list of suburb price rises, with house prices rising an incredible 1,702%.

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%

The rise and rise of the beaches

As we’ve said many times, property prices are dictated by the laws of supply and demand. Real estate can only ever sell for whatever people are willing to pay.

Over the past 30 years, we’ve seen several property-related trends emerge that have helped these suburbs boom.

The first is the growing popularity of the beaches – which, of course, is where each of our 1,500% suburbs is located.

Whereas 30 years ago, many people prized a big backyard in the suburbs, by the 1990s and 2000s, an increasing number of us began craving life by the sea. And if you could get a big backyard by the sea, better still. So the beaches became fashionable, with once relatively working-class neighbourhoods becoming highly sought after.

As this happened, demand rapidly increased, and prices naturally began to rise.

This phenomenon – of the beaches outperforming other property markets can also be seen by the fact that the next-door beachside Coogee (1,227%) way outperformed the market too, even if it didn’t quite make the 1,500% club. North of the Harbour, the beachside suburbs of Manly (1,315%) and Freshwater (1,580%) were also standout performers.

The undeniable appeal of the East

Then, of course, there is the reality that the Eastern Suburbs have always been in demand – and probably always will be. The East is close to everything: the city, the harbour, the airport and transport links, and it also has everything you could ever need – from the best parks and beaches; to the best cafes, restaurants and nightlife.

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This makes it a place people will always want to live, so it tends to outperform the market more generally.

Changing housing stock

Another important factor – and one that we think is often overlooked in any analysis of changing prices – is that the housing stock in Clovelly, Bronte and North Bondi has changed dramatically over the past three decades.

Back in 1993, most properties that came on the market would have been in close to original condition. Today, it’s difficult to find a family home in the Eastern Beaches that hasn’t been renovated extensively or even knocked down and rebuilt. So a comparison between the two eras isn’t necessarily a comparison of like-for-like.

Growing wealth

Sydney is a lot wealthier than it was 30 years ago – or at least the number of people with money to spend is growing (as is the gap between rich and poor). As a result, people can simply afford more in prestigious suburbs than they once did, especially compared with the average. And the Eastern Beaches have certainly become prestige suburbs, with each of the three now registering median house prices at least four times the Sydney-wide average (or six times in the case of Bronte).

Lack of supply

Finally, all those people who wanted to move to the beaches needed to find somewhere to live – but space is tight. Unlike many parts of Sydney, there are simply not enough family homes to accommodate everyone who wants to live here and virtually no new parcels of vacant land on which to build.

So the supply side of the equation has simply failed to rise to meet the demand side of it.

Looking forward

Much of the growth in the Eastern Beaches has come over the past few years, especially as the COVID pandemic caused even more people to prize lifestyle over all other factors in their property search.

In our view, this means there’s likely to be even greater competition in the beachside property market, especially once interest rates stabilise and a greater level of confidence returns to the market.

Want more?

If you’d like to find out more about property in Sydney’s Eastern suburbs, get in touch with our team today.