PHOTO: Elle Hughes. New data reveals that the median house price in Sydney has soared from around $150,000 in the early ’90s
💥 From $150K to $1.5M: Sydney’s Property Boom by the Numbers
Sydney house prices have increased TEN-FOLD since the early 1990s—a generational wealth shift that’s seen ordinary homes transform into million-dollar assets.
New data reveals that the median house price in Sydney has soared from around $150,000 in the early ’90s to over $1.5 million in 2024. That’s an astronomical rise that has outpaced wage growth, inflation, and even the share market.
📊 “If you bought a home 30 years ago, you’ve likely seen the biggest tax-free capital gain of your life.”
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🏠 The Sydney Dream: Still Worth Chasing?
Let’s be honest—today’s first-home buyers don’t stand a chance at replicating the same kind of growth unless something changes dramatically.
Real estate experts say this massive price inflation has made intergenerational homeownership almost impossible without financial help from the bank of mum and dad.
“We’re seeing young Australians borrowing more, saving for longer, and increasingly relying on guarantor loans or family gifts just to get in.”
📌 READ: How to Buy Without a Deposit Using a Guarantor Loan – Expert Advice
💡 What’s Fuelled the Explosion?
The reasons behind this tenfold increase are complex—but include:
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Population growth and urbanisation
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Record-low interest rates (especially between 2010–2021)
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Land scarcity and restrictive zoning
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Global investment pressure
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Tax incentives like negative gearing and CGT discounts
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Infrastructure and lifestyle appeal of Sydney
📉 “While incomes have doubled or tripled over the same period, house prices have gone up ten times. That’s not sustainable.”
🚨 The Ripple Effect Across Australia
As Sydney’s prices skyrocketed, they dragged other metro markets upward too.
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Melbourne saw prices rise six-fold over the same timeframe.
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Brisbane, Adelaide and Hobart also saw record median jumps, though from lower bases.
📌 RELATED: Top 5 Aussie Cities Where Property Is Still Affordable in 2025
🏗️ Can Supply Fix the Problem?
While governments at state and federal levels have promised more housing supply, planning bottlenecks and labour shortages continue to stall progress.
“Even if we build 1.2 million homes in five years, it may not make a dent if demand stays high and interest rates drop again.”
Analysts say zoning reform and better infrastructure planning are needed to seriously dent Sydney’s pricing power.
🧠 What Does This Mean for Buyers Now?
If you’re a buyer in 2025, here’s the harsh reality:
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Waiting on a “crash” hasn’t worked for the last 30 years
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Wages are not keeping up with property inflation
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Getting in early—even with shared equity or co-buying—is still better than waiting
“In hindsight, the best time to buy was 1994. The second-best time is now.”
🔮 So, Will Sydney Prices Ever Crash?
Historically, Sydney prices have dipped—during the 2008 GFC, 2018 credit crunch, and COVID-19 uncertainty—but each time they’ve rebounded stronger.
With immigration surging and housing stock limited, many believe another 10-fold increase is unlikely, but continued growth is all but guaranteed.
💬 “It won’t be another 10x from here. But it also won’t go back to $150,000. The floor has permanently lifted.”