Did Your Home Earn More Than You In FY2024?
If you live in Sydney’s Eastern Suburbs, it’s likely that your property earned more than you did last financial year.
Many Australian homes earned more than their owners last financial year, due to rising property prices.
We take a look at how average capital growth compares to the average wage, and see which suburbs in Sydney’s eastern suburbs have homes that make more each year than their owners do.
Capital growth increases in Sydney
Over Financial Year 2024, the median Sydney property value increased by a healthy 6.3%, or $96,828, according to CoreLogic data.
Interestingly, this is almost exactly the same amount as average full-time earnings in New South Wales: $1,891.40 a week or $98,352.80 a year.
These gains weren’t spread evenly between property types, though. Sydney house prices rose by an average of 6.8%, or $142,079 but apartment values lifted by 5.0% or $47,061.
This reinforces the fact that the gap between house prices and apartment prices is growing.
How did Sydney’s eastern suburbs fare?
On average, residents of Sydney’s eastern suburbs have much higher incomes than most Australians. ABS Census data reveals personal incomes in our part of the world were 59% higher than the state average and 61% higher than the Australian average.
But still, many suburbs and property types far outperformed eastern suburbs incomes.
For instance, while Bellevue Hill houses rose by close to the citywide average in percentage terms over FY 2024 (7.31%), the high median house value in the suburb meant this equated to a phenomenal $665,000 – or 6.7 times average full-time earnings.
Meanwhile, Bellevue Hill apartments earned approximately $185,000 thanks to a 13.6% median price increase. That’s still more than double the average full-time earnings, and would fall within the top 5% of income earners Australia-wide.
For apartments, Clovelly was a top performer, gaining three-times average full-time earnings with a rise of $295,000. This places it in line with the top 1% of income earners (or in line with the earnings of finance and medical specialists according to the ATO).
Paddington houses made twice average full-time earnings, and Randwick apartments came in just shy of that.
In fact, you’d have to be among the very top earners in society to have beaten many parts of our local property market last financial year.
Here are some of the top performers in the east in both the housing and apartment markets for the year to 31 July 2024, according to realestate.com.au.
Capital growth over the last 12 months
| Suburb | House growth (%) | House growth ($) | Apartment growth (%) | Apartment growth ($) |
|---|---|---|---|---|
| Bellevue Hill | 7.31% | $665,000 | 13.6% | $185,000 |
| Paddington | 6.85% | $205,000 | 8.98% | $75,000 |
| Randwick | 5.56% | $174,500 | 8.74% | $92,500 |
| Surry Hills | 8.75% | $175,000 | 3.88% | $35,000 |
| Clovelly | 4.05% | $175,500 | 17.61% | $295,000 |
* Source: realestate.com.au suburb profiles accessed 8/8/24
The impact of your home making more than you do
If you already own property, capital growth is great news.
Regardless of whether you’re an owner occupier or investor, price growth builds wealth and financial security. You have the potential to borrow against that equity, as well as to cash in on the gains when you actually sell.
On the flipside, however, ongoing price growth makes it harder than ever for people to enter the market. This is particularly true for those without equity, like first home buyers. And, it becomes even more problematic when wage growth is slow, like it has been over the past few years.
Want more?
If you’re interested in buying or selling in Sydney’s eastern suburbs, get in touch with my team today.