09.07.2022 Lifestyle

6 Trends That Have Shaped The Eastern Suburbs Over The Last 10 Years

6 Trends That Have Shaped The Eastern Suburbs Over The Last 10 Years

The Eastern Suburbs property market has had a remarkable decade, we look at what’s been driving it.

The Eastern Suburb property market has enjoyed a remarkable decade. In fact, between 2012 and 2022, the median price for houses in our area more than doubled, according to Domain data. We look at the six trends that have been driving the Eastern Suburbs property market and see whether they can tell us what’s likely in the decade ahead.

1. The strong demand for an eastern suburbs lifestyle

Great transport, a short commute to the CBD or airport, beaches, harbour, landmark parks, a major shopping centre, hospitals, thriving cafe and restaurant scene, a unique village vibe in many suburbs, and a host of great schools. There’s a wide range of property types, and a lifestyle for everyone. The eastern suburbs holds its value because it’s highly sought after and demand for property outstrips supply. This strong demand is visible in many ways – like units in Paddington coming in 6th place in last year’s suburb list of the highest average views per listing, with 5,347 views per listing on average for realestate.com.au.

2. The dominance of downsizers

It’s impossible to mention the Sydney property market of the past decade without first acknowledging the role downsizers have played in it. As we wrote earlier this year, in some suburbs – such as Potts Point, Elizabeth Bay, Double Bay and Rose Bay – downsizers have become the most important market segment. So a property’s value will often be determined by how much it appeals to them.

As downsizers have discerning requirements – often including single-level living, space and privacy – this is also driving new types of developments. So we’re increasingly seeing a move towards more prestigious, boutique and smaller developments.

3. The growing gap between houses and flats

While both house prices and apartment prices have risen over the past decade, the reality is that the gulf between them has never been so vast. For instance, in Paddington, the median house price is now $3.2 million, while the median unit price is $935,000 – a difference of 342%.

One of the key reasons for this is that people are putting a premium on space. That’s partly because more of us are working from home. It’s also because we’re spending more time at home, at least since the pandemic began.

The flip side of this is that we’re seeing real value in the apartment market right now. And, with rents rising and life getting back to something resembling normal, it can only be a matter of time before people begin to notice the same thing…

4. The rising age of first home buyers

There was a time when first home buyers were usually in their twenties or early thirties. That’s simply not the case anymore. In our local area, we’re increasingly seeing first home buyers in their forties. As we noted previously, these buyers, who are often more financially stable and independent, aren’t looking for entry-level properties. They’re more likely to be after a two-bedroom+ terrace home in blue chip suburbs such as Paddington and Woollahra. In fact, we’ve sold houses worth more than $5 million to first-home buyers.

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At the same time, the number of first homeowners in the traditional apartment market has been in decline. Again, perhaps this will change over the next few years as more people begin to see the comparative value in this part of the market.

5. The move to the beaches

Beachside living has been fashionable for some time. However, over the past decade, it has become a major trend, with prices in beachside suburbs rising even faster than elsewhere.

In fact, one report found that property prices in Bronte outperformed anywhere in the country since 1991, rising by an incredible 946%. This took the suburb from Sydney’s 81st most expensive to the fifth most expensive over the same period.

This is one trend we’ve really seen intensify since COVID-19 struck – and also one that shows little sign of slowing down. Bronte’s median price is up 43.2% over the past 12 months, according to realestate.com.au – that’s even as the property market more broadly enters a period of decline.

6. The popularity of parkside suburbs

Randwick is an example of another suburb that has really come into its own over the past 10 years. And why wouldn’t it have? Often previously overlooked, it’s a suburb with close proximity to both Centennial Park and the beaches, incredible transport links, and the employment hubs of UNSW and the hospitals.

All of this means the median house price in Randwick is now $3.4 million, while the median apartment price is $1,132,500. We expect that this will be a suburb that continues to grow in appeal over the next decade, as will other parkside locations such as Centennial Park, Paddington and Woollahra.

Want more?

If you’d like to find out more about the property market in Sydney’s Eastern suburbs, get in touch with our team today.