If there’s one thing we know about the Sydney property market, it’s this: freestanding houses are becoming a rarer commodity by the day — and that’s exactly why their demand will remain exceptionally high.
Here’s why:
📉 Supply is shrinking — and homes are more tightly held than ever
Sydney has lost tens of thousands of freestanding houses over the past two decades. As our city grows, planning has pivoted to higher-density living: subdivisions, duplexes, townhouses and apartment towers.
This means fewer traditional homes with land, making each one increasingly scarce.
Add to that the fact that these properties are more tightly held than ever. Owners know exactly what they’re sitting on — an asset becoming harder to replace each year.
💰 The power of tax-free wealth
One of the smartest reasons to own a freestanding house is that your principal place of residence is generally capital gains tax free.
In many cases, owners have made more in tax-free capital growth each year than from their actual salary. It’s one of the best places to park your money, which is exactly why so few people are willing to let go of these properties. It’s not just lifestyle — it’s a tax-free wealth generator.
🚀 Demand keeps growing
Meanwhile, Sydney’s population is still booming — expected to rise by another 800,000 people over the next decade. Families and high-income professionals continue to chase the privacy, space and backyard lifestyle that only detached homes provide, especially in established suburbs near top schools, parks and transport.
📈 Not overvalued — just scarce
Plenty of doomsday commentators claim Sydney property is “30% overvalued.” The reality?
Freestanding houses in blue-chip suburbs simply aren’t overvalued — they’re scarce. Sure, there will be temporary dips when interest rates spike or economic uncertainty hits. But over the long run, demand for these tightly held homes far outpaces the limited and even shrinking supply.
💡 What this means for you
If you already own a freestanding house in Sydney, you’re holding one of the safest, most resilient (and tax-efficient) investments you can make.
If you’re looking to buy, it’s not just about lifestyle — it’s about securing your future in an asset class that’s only getting more exclusive with time.
Real Estate Newsletter
This article is a curated summary of insights into the Sydney property market. 4 July 2025
Rodney McLoughlin is a trusted real estate professional with deep knowledge of Australian property. For tailored advice, reach out to Rodney today.
