In Leppington,a stone’s throw away from Sydney’s upcoming second airport,house prices more than doubled. The median of the fast-developing suburb jumped by 112.9 per cent to $1,162,500 in the five years ending December 2023 on Domain data.
A string of nearby suburbs also made it onto the top 20 list of the strongest growing suburbs in the same period,including Denham Court (up 66.7 per cent),Harrington Park (up 62.8 per cent) and Gledswood Hills (up 59.1 per cent).
Blue chip suburbs near beaches and in the inner city also recorded some of the strongest growth in Sydney in the past five years. Bronte jumped 78.2 per cent to a median of $5.8 million,Glebe grew 72.8 per cent to a median of $2.73 million and North Bondi increased 67 per cent to $4,275,000.
Sydney’s overall median house price has risen 49.5 per cent since December 2018.
St George chief economist Besa Deda said Sydney house price growth would likely continue in the next year,albeit at a slower pace.
“During COVID,the Reserve Bank cut back to a historically low level and that did encourage economic activity and buyer activity,particularly once we reopened the economy and borders,” Deda said.
This was happening against a backdrop of lower building approvals and less housing construction – all pointing to a chronic shortage of homes in the face of ongoing demand.
“There’s a housing shortage. There is a very large increase in the population that’s coming through,and the labour markets remain tight as well. That is helping support dwelling prices,” she said.
While Deda expects house price growth to continue,it will slow down thanks to higher interest rates,which has stretched affordability.
House prices are expected to keep rising.Peter Rae
“We expect price growth to continue in Sydney but not at the same pace as last year. The rate of growth would moderate,” she said,adding that rate cuts would contribute to fresh pressures.
North Bondi sellers Yvonne Strasser and Cary Fraser hope to capitalise on the house price growth of the suburb to downsize in the postcode they bought into in 2018.
“We’ve done a renovation on the property and the home is beautiful. We absolutely love the home. Once you’re up in the tree house,you’re away from everything and feel like you’re on holiday,” Strasser said. “Hopefully,we can capitalise on the growth and stay in North Bondi.”
She said the suburb was perhaps once undervalued and has only burgeoned in recent years.
Yvonne Strasser and her husband Cary Fraser at their home for sale in North BondiFlavio Brancaleone
“Before it could maybe be seen as a little bit rundown,but now it’s becoming a bit more gentrified,” she said.
“With all of the new developments,not necessarily the houses,but just places to go,even down the promenade. They’re doing the pavilion up. They’re making it more of an area people want to go to,it’s brought more people to the area.”
Their selling agent Warren Ginsburg of Ray White Double Bay,who is guiding $6 million on the North Bondi property,said blue chip suburbs soared to new heights during COVID.
“It’s due to people wanting better lifestyles,they want proximity to beaches and to cafes and restaurants,” Ginsburg said.
He said young families,successful business owners and cashed-up downsizers were propelling house price growth in the eastern suburbs.
“It’s definitely young families who have had success in business in the past few years and are upgrading and there are a lot of downsizers who have sold their properties for significantly more than they expected are now downsizing into that market and are cashed up and driving the prices up.”
Ginsburg said these areas will continue to rise as the combination of lifestyle and proximity to amenities remains desirable.
Meanwhile,house prices in far-flung suburbs on the outskirts of the city recorded impressive jumps in the past five years due to their relative affordability,as many sit well below the citywide median of $1,595,310,as well as their proximity to fast-growing infrastructure and amenities.
“Denham Court,Gledswood Hills. They’re all within a kilometre radius of Leppington. We’ve got the railway station,you’ve got the airport coming. You can see that being built,and it’s a realisation,” said Michael Cavagnino of LJ Hooker Leppington.
“It’s all about accessibility and affordability. We’ve had a lot of people moving out from the inner suburbs because the station is there as well as the flexible working arrangements.
“We’re finding a lot of first home buyers and people who are upsizing are driving the growth,” he said,as well as investors. “Leppington as well is the strategic centre of the south-west. I can see it being like Parramatta,like Sydney’s third city.”