Sydney real estate: What your home could be worth in 2029

Sydney’s home prices are expected to continue to rise significantly in coming years. This is what the experts predict homes in every Sydney suburb will be worth in five years.

• Sydney home prices hit another brutal milestone

Property prices in many Sydney suburbs could be on track to nearly double in just five years, with homes in some outer western suburbs primed for prices north of $2m.

Exclusive modelling from PropTrack examined what median dwelling prices would be across every suburb if trends from the past five years were repeated, revealing prices still had room to grow above their already lofty highs.

The median house price would be $2.1m by 2029, while the median unit price would be $842,000 according to the analysis.

PropTrack senior economist Paul Ryan said current conditions were likely to support further growth in real estate values, especially in the coming years.

Nick Farmer and Carly Miller have purchased adjacent to one of Sydney’s biggest growth suburbs.

“We’ll still see prices increasing over the next 12 months to two years because of the demand versus supply story, and expectations that interest rates will fall maybe early to mid next year,” he said.

More affordable pockets and “lifestyle areas” were likely to continue to see the biggest demand, according to Mr Ryan.

Ray White chief economist Nerida Conisbee said the biggest pressure on housing prices would be low supply and soaring construction costs, while significant infrastructure investment would also push up demand in Sydney’s west.

“Areas that have good infrastructure do see high demand from people wanting to live there … (it) makes them much better places to live,” she said.

PropTrack indicated that the area that would have the largest value jump in the next five years if recent trends were repeated was Caddens, a fairly new western suburb gazetted back in 2012.

Benefiting from increased infrastructure and compositional changes in local housing stock, the greater Penrith suburb currently has a median dwelling price of $1.26m, which would grow to $2.47m by 2029.

Caddens house sold for $1.255m in April, Caddens could experience a 96 per cent growth in the next 5 years.

Lifestyle suburbs like Putney and Copacabana, where many new high-end homes are being built, would also see significant growth.

Putney could see a 95 per cent increase in the next five years, putting its home price median at almost $7m, while Copacabana, a small coastal suburb on The Central Coast, would go from $1.685m to $3.226m by 2029.

Popular eastern beachside suburb Bronte was set to have one of the biggest jumps in the next five years, with its dwelling price median set to surpass $7m.

6 Lugar Brae Ave, Bronte sold for $4.75 with Bronte’s dwelling price median projected to surpass the $7m mark.

Ms Conisbee said land supply would affect many of these lifestyle suburbs.

“You can’t expand certain suburbs, there is only so much land available, and there are always people who are wealthy and have more money,” she said.

On the upper north shore, Thornleigh and Warrawee stood out as the best suburbs for growth potential, with dwelling price increases of 86 per cent and 84 per cent respectively.

Legacy Property CEO Matthew Hyder, who has developed in around Caddens, said buyer demand in the area was intensifying.

Another development adjacent from Caddens, Orchard Hills North, has had an average of 250 new registered buyers weekly since launching in December 2023, he said.

Artist impression of Orchard Hills North.

“That just shows mathematically what the demand is in this part of the world,” Mr Hyder said. “It is a little bit crazy – its great to receive that response from the market but that really is telling. It’s not ideal for Sydney. There shouldn’t be that level of interest in one project but there is just so little choice.”

Mr Hyder added that the time it takes to rezone and amalgamate land was the biggest restriction for developers, while $1b in upgrades to Nepean Hospital and coming train links between St Marys and the new Western Sydney Airport were also boosting demand.

First-home buyers Nick Farmer and Carly Miller recently purchased land in Orchard Hills North.

First home buyers Nick and Carly have purchased land to build there dream home adjacent to Caddens, with the area expecting to experience huge growth.

“When the first stage of Caddens was being built, house and land went for $750,000 and they are now going for about $1.4m. It’s doubled in the last five years,” Mr Farmer said.

Mr Farmer was drawn to the coming infrastructure, including the proposed new school, sporting, recreation facilities and improved public transport.

Having purchased their land for $655,000 and preparing to build a long-term family home, the couple had also considered the house price growth potential.

Finding their lot in Orchard Hills North.

“This will allow us to have some equity build up,” Mr Farmer said. “We can do some future things together whether that's an investment property or otherwise.”