NEARLY half the homes in Sydney are worth at least double the prices their owners paid for them.
New real estate research revealed homeowners’ strong equity position was the result of five years of unprecedented property price hikes.
The surge in prices has gifted Harbour City property owners with more real estate wealth than at any time in recent history, the CoreLogic data showed.
The 48 per cent of homeowners with a property worth at least double its purchase price was substantially higher than the 37 per cent of owners in this position 10 years ago.
The proportion of property owners with homes worth less than their purchase prices also dropped.
In 2007, one in fourteen homes was worth about 10 per cent less than their owners bought them for. Today the number is closer to one in 200.
Homeowners in Melbourne were in a similar position with 47 per cent of properties worth at least double the purchase price.
Less than 35 per cent of owners in Perth, Adelaide and Brisbane had doubled their value.
CoreLogic head of research Tim Lawless said Sydney owners with the most equity usually bought at the right time.
“The strong capital gains (created) a significant boost in wealth for homeowners who were fortunate enough to own a property through the latest growth cycles,” he said.
Median price growth figures showed homeowners had some of the largest equity gains in Sydney’s inner west.
Typical house value doubled in the Canada Bay and Strathfield council areas over the past five years.
House prices in Parramatta and the Hills council areas were just shy of double their 2012 levels.
Such large jumps in property values were unlikely to be repeated in the next few years, Mr Lawless said.
“It will be harder to double the value of a property in Sydney and Melbourne after such a sustained period of high capital gains,” he said.
“As growth eases across Sydney and, to a lesser extent Melbourne, we may start to see a slow reversal of these trends.”