A recent discovery of real estate listings from 1972 has produced astonishment among Australians, highlighting the dramatic escalation in property prices over the past five decades. The median house price in Sydney, the country’s priciest city, has skyrocketed 5000 per cent since that time, with current valuations surpassing $1.2 million.
The historical listings, pulled from the 1972 edition of The Realtor, featured properties in areas including Frenchs Forest, Belrose, Beacon Hill, and Allambie Heights on Sydney’s Northern Beaches. For instance, a three-bedroom home was advertised for $23,950, while the top-tier listing — a four-bedroom property with space for a swimming pool — commanded a price of $44,950.
In 2021, one Beacon Hill home estimated at $27,500 in 1972 sold for an astonishing $2.55 million, reflecting an increase exceeding 9000 per cent. This surge outstrips the growth of average wages in that same period, which rose less than 2500 per cent.
Mark Novak, a local real estate agent at Novak Properties, suggests that even the modest homes highlighted in the historical listing would now be valued at over $2 million. For example, he notes that a standard three-bedroom house is now around the $2.2 million mark, while two-storey homes can reach between $2.7 million and $2.9 million.
### Historical Context: Wages and Affordability
In 1972, the average weekly wage in Australia was just $85.50, equating to an annual income of less than $4500. To buy the more affordable three-bedroom home from the 1972 listings, an individual would have needed to spend about five times their annual salary, albeit with an interest rate of approximately 7 per cent.
Fast-forwarding to 2025, a typical full-time worker in Australia earns just under $100,000, while the median home value in Frenchs Forest is currently $2.2 million. This means prospective homebuyers would be required to spend more than 22 times their income on a property in that area.
Despite incredulous price rises, Novak points out that property values generally double every decade, indicating a persistent appreciation trend. He characterises the Frenchs Forest neighbourhood as a “lovely, honest, Australian” area where hardworking families value community ties. Individuals who invested in homes decades ago might not have been affluent, but their properties have significantly increased in worth over time.
Interestingly, many homes from the 1972 listings have largely maintained their original appearance, with only minor renovations in kitchens and bathrooms. Novak notes the lasting resemblance of many properties; while some furnishings and cars may have changed, the overall structural integrity remains similar.
### Advice for First Home Buyers
For first home buyers grappling with the daunting current housing landscape, Novak offers a glimmer of hope. He advises potential buyers to leverage their superannuation funds. By voluntarily contributing more into their super, first home buyers can withdraw these savings to facilitate a property purchase, allowing them to save more efficiently.
In summary, the rise in house prices over the last fifty years in Australia is a testament to the changing real estate market, reflecting broader economic dynamics. Understanding these trends provides crucial insights for current and future homebuyers navigating an increasingly tough housing market.
