Homeownership has become a powerful generator of wealth for Australians who entered the property market before the Covid pandemic — particularly across Sydney’s harbour and eastern suburbs.
New analysis of PropTrack data reveals multiple Sydney pockets where homeowners have gained more than $1 million in equity over the past five years, translating to average annual increases exceeding $200,000. These gains now rival — and in many cases exceed — the incomes of Australia’s highest-earning professionals.
Million-Dollar Gains Across Sydney
Several suburbs traditionally considered middle-income areas have seen extraordinary price growth.
Inner west suburb Concord recorded one of the standout performances, with median house prices climbing from approximately $2.05 million to $3.12 million over five years — a rise of more than $1 million. Similar growth was seen in neighbouring suburbs including:
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Russell Lea
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Drummoyne
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Burwood
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Strathfield
Further gains were also recorded in Gladesville and Hunters Hill, while northern suburbs such as Freshwater, Northbridge, Willoughby, Roseville, North Turramurra and Pymble also delivered average equity increases exceeding $1 million.
These figures highlight how broad-based Sydney’s property growth has been, extending well beyond traditionally elite postcodes.
Eastern Suburbs Lead in Dollar Terms
While many middle-income suburbs performed strongly, the biggest dollar gains were concentrated in Sydney’s already premium eastern suburbs — underscoring how wealthier areas have benefited most from the property boom.
Bellevue Hill topped the list, with median house prices rising by nearly $5 million over the five-year period. Nearby Vaucluse followed closely, recording gains just shy of $4 million.
The analysis excluded suburbs with fewer than 50 annual sales and areas dominated by new housing estates to ensure consistent comparisons.
An Exceptional Five-Year Period
Sydney’s last five years have marked one of the most extreme growth cycles in modern history. In 2021 alone, property prices rose at the third-fastest annual pace seen in nearly 150 years.
Several factors have fuelled this surge, including:
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Chronic housing shortages
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Building constraints
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Record population growth
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A resilient Sydney economy
These fundamentals have helped sustain demand despite rising interest rates.
Super-Prime Market Rebounds
The strength of Sydney’s high-end market was also reflected in Knight Frank’s Global Super-Prime Intelligence Q4 2025 report, which tracks global residential sales above US$10 million.
Sydney recorded a 58 per cent increase in super-prime sales during the final quarter of 2025, with 52 properties selling above US$10 million. This placed Sydney fifth among 12 global cities — ahead of Miami, London and Paris.
Not Just the Wealthy Benefiting
PropTrack data shows that strong equity growth hasn’t been limited to ultra-premium suburbs.
Several middle-income areas delivered average gains of more than $150,000 per year, including:
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North Ryde
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Epping
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Ryde
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Eastwood
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Croydon Park
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Blakehurst
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Allambie Heights
This demonstrates that significant wealth creation has occurred across diverse parts of Sydney.
What Happens Next?
REA Group economist Angus Moore noted that while the Reserve Bank’s latest cash rate hike may slow price growth, Sydney’s market remains supported by strong fundamentals.
“Unemployment is still very low, wages are growing, and while rates are likely to rise in the near term, Sydney hasn’t experienced the same explosive growth seen in Adelaide, Perth or Brisbane,” he said. “We’re still expecting to see growth in Sydney as a result.”
Canstar data insights director Sally Tindall added that the recent rate increase could reduce the average Australian’s borrowing capacity by roughly $12,000, potentially pushing some buyers to pause while they wait for clarity on future rate movements.
“On its own, the February RBA increase is unlikely to derail home-buying budgets nationwide,” she said. “But it may encourage some buyers to sit on the sidelines to see how many more hikes lie ahead.”
The Bottom Line
Sydney homeowners who bought prior to the pandemic have experienced one of the most powerful wealth-building periods on record. While interest rates may temper momentum in 2026, limited housing supply and strong population growth continue to underpin the market.
For property owners, this highlights the long-term value of holding quality real estate in well-located suburbs — and for buyers, it reinforces the importance of strategic timing and suburb selection.
