Where Are Buyers In Sydney’s Eastern Suburbs Coming From?
We know the eastern suburb is a blue-chip area in high demand.
But did you know that most of that demand comes from locals? We look at who’s buying in the east right now and what trends to expect over the next few months.
Around two-thirds of buyers are already from the east
Recent Domain data reveals that in the July 2020 quarter around 64% of all email enquiries for eastern suburbs sales listings came from buyers already living in the eastern suburbs.
Interestingly, ours is the only area in Sydney where demand from locals outnumbers interest from out-of-area buyers, going to show how tightly held Sydney’s east really is.
Despite this, we’re actually seeing more demand from people living outside the eastern suburbs than we have been. In 2018, 69% of all enquiries came from people living here. Domain says this is in line with other regions and that we’re seeing a more general trend of people moving across cities and suburbs.
Where do the non-local buyers come from?
Domain data showed that after local buyers, the eastern suburbs were most popular with buyers located in the city centre, inner west and lower north shore.
This is consistent with the patterns we notice in our buyers. But it’s also worth noting that the Domain data is based on email enquiries, not actual sales.
What we’ve seen recently
Breaking it down further, it’s fair to say that the eastern suburbs are diverse. Different areas hold appeal to different demographics. From the beaches to the urban inner city, harbourside and parkside areas, there certainly is something for everyone and different types of buyers are often active in each of those markets.
With that in mind, here are four trends we’re observing among buyers right now.
Downsizers are still very active
We’ve seen a lot of buyer interest from downsizers who are often coming from large family homes in Vaucluse, Bellevue Hill, Mosman, Roseville or Lindfield. Some are even coming from as far north as Dural and are downsizing from acreage.
These downsizers tend to be attracted to the local village lifestyle of suburbs such as Paddington and Woollahra and often look for ‘lock-up and leave’ properties with low maintenance gardens or courtyards.
We’ve also seen downsizer interest grow in beachside suburbs such as Bronte and North Bondi, which hold similar lifestyle appeal.
The upsizers are ready to make a move
Some fortunate people have so far been unaffected by the economic impacts of COVID-19, especially those working in professional services and financial jobs.
We’ve had many enquiries from working couples who have managed to maintain their earnings and want to take advantage of today’s low stock levels by selling to upgrade. They’re also often prepared to rent for a while before they upsize to a larger family home.
This group generally comprises second or third home buyers who have built up equity in their existing property. They usually also have a growing family and space is becoming more important.
These buyers tend to have their heart set on a family home in Bellevue Hill, Vaucluse, or even Randwick.
First home buyers are acting conservatively
With State and Commonwealth first home buyer grants and schemes offering generous subsidies and interest rates at historic lows, you’d expect to see a lot of first home buyers enter the market. But we’re not seeing too many at all on the ground right now.
Many potential buyers are keen but taking a conservative approach due to the uncertainty around COVID-19. Lenders are similarly conservative, which also has flow-on effects because some potential buyers can’t borrow as much as they’d like.
We’re finding the first home buyers active right now often defy typical preconceptions about who’s getting onto the property ladder. They are often older, have established careers and are sometimes looking to make their first purchase in the $2-$3 million price bracket or even higher.
Investors are watching with interest
Over the past five years, we’ve witnessed investor interest in suburbs along the newly opened Sydney Light Rail to the CBD. Randwick, Kensington, Kingsford and Surry Hills, have already seen strong price growth as a result.
While low-interest rates make property investing look very appealing right now, many investors are hanging back from the action, waiting to see what happens in the medium term when JobKeeper gets wound back and mortgage freezes come to an end.
So far, low stock levels have kept prices high but if this were to change we’d expect to see investors leave the sidelines and compete with first home buyers for properties.
If you’d like to know more about buying or selling in Sydney’s eastern suburbs, get in touch with our team today.