12.06.2023 Buying Tips

Data Reveals Buyer Demand Has Increased In The Eastern Suburbs

Data Reveals Buyer Demand Has Increased In The Eastern Suburbs

Which Eastern Suburbs are in the highest demand from buyers, and what type of properties are they interested in?

We take a look at the data.

A couple of months ago, we wrote about what buyers are really looking for in Sydney’s Eastern Suburbs, analysing the property features most commonly searched for.

Some recently released data from realestate.com.au tells us even more about buyers in our area. This includes which suburbs are experiencing the highest buyer demand for properties and which types of properties are increasing in popularity.

We take a look at what it tells us about the market this year.

What are buyers looking for?

Data released by realestate.com.au’s PropTrack last month focused on buyers in the “later stages” of their property purchasing journey. Among other things, it measured “high-intent actions” such as emailing an enquiry, calling the agent or downloading documents to reveal how in-demand a suburb is.

Realestate.com.au argues that overall, it shows buyers are seeking two key things from a suburb: affordability or desirability.

The results highlight the fact that despite a challenging buying environment over 2023, with rising interest rates coupled with increasing property prices, buyer demand has actually surged in many suburbs.

Here are some of the insights the data reveals about the suburbs in our area.

Paddington and Woollahra: Increasing buyer demand for apartments

While the demand for Paddington houses remained relatively stable (-1.0% change year-on-year), the real story is in apartments, where buyer demand surged by 31% compared to this time last year.

Despite the increase in demand, apartments are still not as popular as houses, receiving an average of 12 enquiries compared to 23 per listing for houses.

That said, the fact that the Paddington suburb record was smashed by an apartment sale for $20 million earlier this year shone a spotlight on Paddington apartments. Because buyers typically associate the area with terrace houses, apartments can be overlooked.

In reality, they comprise almost a third (31.8%) of dwellings in Paddington, and there’s a great range from compact studios to large penthouses with city views.

A great example is 17/4 Young Street Paddington, which is currently on the market and offers two bedrooms, two bathrooms, double parking and a magnificent terrace.

In neighbouring Woollahra, it’s a similar story: houses saw a slight decline in buyer demand (-7% year-on-year), while buyer demand for apartments grew by a massive 40%. Interestingly, Woollahra houses outpaced Paddington houses when it came to enquiries, receiving 34 enquiries per listing (compared to 23 in Paddington).

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A trend across the East: Apartments seeing increased buyer demand compared to houses

We’re seeing this trend play out across the whole of the Eastern Suburbs, where apartments are seeing increasing buyer demand, while demand for houses is more consistent and stable. However, as the table below shows, there are some notable exceptions.

Suburbs where buyer demand has risen for apartments:
Centennial Park: up 88%
Surry Hills: up 58%
Randwick: up 42%
Bondi: up 38%
Bellevue Hill: up 24%
Bronte: up 23%

Suburbs where buyer demand has risen for houses:
Queens Park: up 48%
Edgecliff: up 20%
Darling Point: up 20%

Several factors are likely to be behind this. First, our growing population. Secondly, some of it could be attributed to the increased presence of investors in the market this year, as they typically buy apartments over houses in Sydney’s East. A third factor could be affordability, with the ever-growing gap between apartment and house prices making it harder than ever for people to afford a house.

In fact, right now, Greater Sydney has the largest median house and unit prices gap at 74.5%, and this has increased from 29.1% in less than four years, making houses a much more expensive purchase than many apartments.

Harbourside: A high number of enquiries per listing

In the harbourside Eastern Suburbs, Vaucluse, Rose Bay and Double Bay were called out by realestate.com.au as having a high number of enquiries per listing. This shows the depth of buyers for premium property, as well as the perennial popularity of desirable blue-chip, harbourside addresses, and the overall strength of Sydney’s prestige market.

Houses in Double Bay received 51 enquiries per listing – a massive rise of 63% year-on-year in buyer demand, while apartments in the suburb received 21 enquiries per listing, a 28% increase.

Vaucluse houses received 50 enquiries per listing, up 2%, while Vaucluse apartments saw 18 buyers per listing, which was up 24% year-on-year.

In Rose Bay, apartments were up 30% year-on-year to receive 19 enquiries per listing, while houses received 53 enquiries per listing.

We currently have 7 Collins Avenue Rose Bay on the market, with a rare absolute beachfront location and a five-bedroom home on a 676 sqm block with scope to build your dream Sydney home.

Want more?

Overall, the data reveals that in most suburbs across Sydney’s East, buyer demand is either stable or increasing. And, of course, that’s very good news for sellers.

If you’re interested in buying or selling in Sydney’s Eastern suburbs, get in touch.