The premium Sydney locations of Manly, Mosman and the Eastern Suburbs have seen home prices surge over the past decade, with values jumping more than $2 million.
According to Henderson Advocacy, Manly has been the top-performing market since 2010, with house values rising a staggering $2,525,000 since 2010.
Mosman, on the Lower North Shore, came in second, with house prices up $2,145,000.
The Eastern Suburbs (North) was third with prices up $2,050,000, Chatswood – Lane Cove was fourth with values up $1,945,000 and Ku-ring-gai fifth, with values rising $1,900,000.
Other top-performing areas included Canada Bay, Ryde, Warringah and Pennant Hills – Epping
The top 20 suburbs nationally were dominated by Sydney locations, with only Melbourne’s Boroondara and Broadbeach – Burleigh on the Gold Coast making the list of suburbs that have increased by more than $1 million since 2010.
Founder of Henderson Advocacy, Jack Henderson said demand for Sydney’s blue-chip suburbs was still strong.
“It’s not just supply and demand point blank, it’s supply and demand from the right demographic of people,” Mr Henderson said.
“I always talk about making sure that you’re buying near affluence and around wealthy people, because, as we’ve seen, not just in property, the wealth gap is getting larger.
He said in these locations, there were more wealthy people who want to live there than there are properties available.
“Naturally, as we’ve seen, the prices will just continue to increase because the wealthiest people’s wealth continues to increase,” he said.
“So they can continue to spend more and more on property.”
Mr Henderson said typical buyers in areas like the Northern Beaches or Eastern Suburbs are Australian buyers, but there is also a small number of wealthy Chinese Australian buyers.
He said most of the buyers tend to be highly paid professionals and executives or business owners who have the ability to borrow to buy into these areas.
Across the Northern Beaches, most of the suburbs have strong demand and incredibly tight listing levels.
Suburbs including Balgowlah, Balgowlah Heights, Fairlight, Clontarf and Seaforth are all popular locations with families and prices continue to rise over time.
In North Sydney, Cammeray and Cremorne were both seeing strong demand from high income earners.
While in the Eastern Suburbs, Bellevue Hill, Bondi and Bronte were some of the areas seeing prices rise rapidly.
According to Mr Henderson, prices in the blue-chip suburbs will continue to rise going forward because of the lack of properties available for sale.
“The owners of these properties tend to never sell,” he said.
“So over time, the stock just gets tighter and tighter in these suburbs.
“If you’re an owner in these suburbs, there’s just so much uplift that continues to happen simply because there is no stock that trades.”
Mr Hendeson said higher quality properties in good streets, on decent blocks, with a house that appeals to a lot of people, experience greater demand.
“That’s what we’re really big on when we’re investing,” he said.
“It’s not just about a great suburb, but how we get the best house on the best street.”