How much it costs to live in Sydney’s most expensive suburb
Buy an average-style house on a middling lot in what has become Australia’s most expensive suburb and you’ll have nothing left over $11 million.
What’s more, you may have just bought yourself the most expensive demolition and rebuild imaginable.
The median house price in the Bellevue Hill residential area in Sydney’s eastern suburbs has reached an all-time high of $11 million after skyrocketing by 29.3 per cent in the 12 months to March, according to the latest figures from Domain.
This is a price increase that, like some parts of the country’s real estate market, shows no signs of abating. By comparison, house prices in Sydney rose 6.6 per cent from March.
“This is an incredible average house price for a suburb in Australia,” said Dr Nicola Powell, head of research and economics at Bellevue Hill Domain.
“This is a result of the shortage of supply in the suburb – there were only 83 sales last year, which is a very limited turnover and houses there are very tightly held.
“So when the right house comes along it can create a real jump in price, as the ultra-rich, who are less affected by cash interest increases and rising costs of living, are happy to pay whatever it takes to buy a rare prize asset. With wealth buried deep, they see expensive homes as long-term wealth preservation.”
Although Bellevue Hill does not have direct harbour, river or beach frontage, it is still Australia’s most expensive suburb, according to the latest Domain House Price Report, with regular high-end sales in the tens of millions of dollars.
Last year alone saw sales of $50 million at 69 Victoria Road, $26 million at 106 Victoria Road, $24.5 million at 33 Streatfield Road and $21,550,000 at 6 Latimer Road. Last year also saw Gretel Packer pay $59 million for the property next to her Bellevue Hill home.
Powell believes price growth will continue with the 2026 federal budget reforms to negative gearing and the capital gains tax.
“Over time we will see people pumping more and more wealth into their primary homes because they won’t have to pay taxes,” he said.
“They will opt for major renovations or expansions rather than purchasing other investment properties, which will push prices even higher.”
Bellevue Hill’s value was kept low for years until three major sales about three years ago finally put it on the map as a moneyed area to live, said prestige agent Brad Pillinger of the real estate agency that bears his name.
Among the sales was shipping magnate Arthur Tzaneros’ purchase of the Bellevue Hill mansion for $61.5 million. The seller of this property, flower mogul Leo Lynch, purchased the nearby Leura mansion for $76 million.
“This was the period when Bellevue Hill caught up with the rest of the market, as the impact of these sales continued into the following years,” Pillinger said.
“Another reason it was undervalued was that some streets in Rose Bay continued to be called Bellevue Hill because it was perceived as being a little more prestigious and closer to the city.”
However, it is not possible for this average figure of 11 million dollars to buy you the house of your dreams.
Selling agent Oliver Lavers, of TRG, says it’s much more likely to leave you with a home that will need a fair bit of work to get it up to scratch.
“I sold a four-bedroom house in February this year. 18 Bunyula Road It’s being demolished and rebuilt as a double duplex for $10.4 million,” said Lavers, who is also currently selling 34 Beresford Road That’s for the magic average of $11 million—though it’s right on the doorstep of Rose Bay and Bellevue Hill.
“But Bellevue Hill is so popular not just because of the caliber of some of its properties, but also because of the large homes on good-sized plots. It’s also very convenient, with prestigious schools nearby and close proximity to the city, Bondi Junction and all amenities.”
But ironically, while the average house price in Bellevue Hill has risen, the average apartment price has fallen 8.1 per cent in the 12 months to March, averaging $1,655,000.
“The profile of home buyers in Bellevue Hill is very different from home buyers,” Powell said.
“They’re still paying for prestigious location, but increases in interest rates and living costs are hitting them even harder, and there’s no shortage of apartments like there is in prestigious homes.”
Sue Williams is a Sydney-based freelance travel writer, author and journalist who writes for newspapers, magazines, radio and TV stations around the world.Connect via email.
