Post-pandemic ripples linger across parts of Australia’s housing market, where prices in several Sydney suburbs have doubled in just five years.
PropTrack data has revealed the suburbs where median home values have seen a twofold surge since the peak of the Covid-19 pandemic (March 2021).
Southwest Sydney dominated the price growth pockets, with Colebee in Sydney’s Blacktown region recording the greatest rise from a median house price of $497,280 five years ago to a current median of $1.34m.
Box Hill’s median house price has risen from $491,000 to $1.28m, while Nirimba Fields increased from $488,150 to $1.28m.
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Colebee was the top suburb that had doubled since March 2021. Picture: Christian Gilles
Suburbs that followed, also doubling in median house price, included Bringelly, Austral, Waverton, Leppington, Ingleside, Gables and Cobbitty.
REA Group Senior Economist Eleanor Creagh said most of the suburbs where home prices had doubled since the pandemic were relatively affordable to begin with but experienced an enormous demand shock.
“When mortgage rates fell to historic lows during the pandemic, buyers’ purchasing power increased significantly and these record low interest rates, lifestyle shifts and limited housing supply created the conditions for some of the strongest price growth we’ve seen in decades,” Ms Creagh said.
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Eleanor Creagh
“While doubling in values is extraordinary, it’s important to remember that the pandemic period was anything but normal.
“The housing market experienced a perfect storm of record low interest rates, strong household savings, population shifts and tight housing supply, all of which amplified price growth.”
Ms Creagh said many of the suburbs with the strongest gains started the pandemic from a much lower price base.
“That means the same dollar increase translates into much larger percentage growth,” she said.
“But it also reflects how demand broadened beyond Sydney’s traditional prestige markets, as buyers looked further afield for space, affordability and lifestyle.”
Marilyn and George Kairouz are homeowners who have seen their house values surge.
George and Marilyn Kairouz at their house in Colebee which is currently for sale. Picture: Christian Gilles
We bought our place roughly nine years ago,” Mr Kairouz said.
The pair are now downsizing from their four-bedroom home with a guide of $1.7m in Colebee.
“The properties in Colebee have gone through the roof, it’s a very good area and lovely new estate,” Mr Kairouz said.
“We are happy to sell now, with the extra money we can buy a nice apartment in the west, we’re quite happy with the move.
“The extra money is also very good when you’re near retirement.”
The Kairouz’s at their house in Colebee. Picture: Christian Gilles
Ray White Colebee Agent Deepak Rochlani said growth across all the northwest corridor is big.
“We have M7 right in the corner as well, and nice schools,” he said.
“We have a golf course in Colebee, and a golf course brings a different kind of buyer in, they are happy to go up to $3m houses.”
Having sold hundreds of development lots since 2018 in the suburb, Mr Rochlani said construction and land costs were the greatest driver for the price increase.
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Deepak Rochlani
“In post-covid that land went from $450,000 to $700,000 or $800,000 literally within the one and a half to two years,” he said.
“Now these are selling approximately around $1.5m and $1.6m.
“That is purely because the construction cost has gone up a lot and also the land prices have gone up a lot as well.
“By the time you build these same houses at the moment, the cost almost doubled since 2021.”
Ray White Chief Economist Nerida Conisbee echoed a similar sentiment, pointing to many of the suburbs to double in price were house and land areas.
“We know that construction costs have increased rapidly, so the cost of building a new home in these areas has increased 40, 50 per cent, that’s a major factor in the price increases,” she said.
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Nerida Conisbee
Ms Conisbee said suburbs suitable for the five per cent deposit scheme were also in very high demand.
“That price point is red hot at the moment, primarily because you’ve got a lot more first home buyers targeting many of these areas,” she said.
Whereas established suburbs to make the list were also factored by affordability.
“There has been a lot of people because they can no longer afford to buy a brand new home they’ve been pushed into the established market,” Ms Conisbee said.
“That’s also been a factor that’s led to far greater growth for homes in those areas.”
Suburbs with median house prices that have doubled since Covid-19 March 2021
Suburb Region Current median price Median five years ago
Box Hill Sydney – Baulkham Hills $1,289,995 $491,000
and Hawkesbury
Nirimba Fields Sydney – Blacktown $1,280,000 $488,150
Bringelly Sydney – South West $6,550,000 $2,500,000
Austral Sydney – South West $1,065,000 $409,000
Waverton Sydney – North Sydney $5,815,000 $2,300,000
and Hornsby
Leppington Sydney – South West $1,100,000 $454,500
Ingleside Sydney – Northern Beaches $5,450,000 $2,262,500
Gables Sydney – Baulkham Hills $1,370,000 $586,900
and Hawkesbury
Cobbitty Sydney – South West $1,200,000 $520,300
Bellevue Hill Sydney – Eastern Suburbs $12,000,000 $5,840,000
Carramar Sydney – Parramatta $1,150,000 $565,000
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