Seachange In The City
It’s been widely reported that since COVID-19 buyers have been departing Sydney for regional areas as part of a sea change.
But what we’ve also noticed is an increasing number of people making a seachange without leaving the city.
Since COVID-19 hit, buyers have been leaving Sydney in record numbers for regional areas, to enact a long dreamed of sea or tree change.
In fact, the ABS reports that 2020 saw the largest number of people leaving capital cities for regional areas ever recorded.
But we’ve noticed another group of buyers making the same lifestyle change without having to leave Sydney.
We take a look at how sea changes within our city are pushing up prices on Sydney’s Eastern Beaches.
Regional migration mirrors city-wide migration patterns
In 2020, a net 43,000 Australians moved to regional areas from capital cities. This equates to the largest net migration from cities to the regions since records began in 2001, and an increase from 18,900 in 2019.
Many people moving to the regions were in search of a lifestyle change, a different pace of life, or a sea or tree change. As a result, regional areas saw prices rise, rental vacancy rates plummet, and demand outstripping supply. And property markets in sought after sea change locations like Byron Bay went into complete overdrive.
According to Corelogic, regional housing values rose by 6.9% over 2020 – a rate of capital gain three times higher than the combined capital cities over last year. Byron Bay house prices lifted an incredible 37%.
Interestingly, the desire for life by the beach is also a phenomenon that we’ve observed mirrored in, or carried over to the Eastern Suburbs property market, albeit on a smaller scale. We’re meeting many buyers who are making a lifestyle move and choosing to have a sea change in the city. And it’s having a similar effect on the property market in Sydney’s Eastern Beaches.
Sydney’s Eastern beaches benefitting from the trend for a sea change in the city
A case in point, Bronte made number four on the Domain House Price list of Sydney suburbs with the strongest price growth in the year to July 2021. Bronte’s median house price rose by 35.5 per cent, to reach $4,660,000.
And it doesn’t stop there. By 31 August realestate.com.au had the median house price in Bronte sitting even higher, at $4,800,000.
Now the effect is rippling out, with lockdown and the 5km rule contributing to Sydneysiders’ desire to be within a short distance of the coast.
In fact, data released by Domain in September shows that buyers will pay, on average, as much as four times as Sydney’s median house price to live close – within 5km – of the beach, placing a real squeeze on the beachside markets across the city.
1 Bronte Marine Drive, Bronte
In March 2021, we broke the auction record for an apartment when we sold 16/16 Notts Avenue Bondi Beach for $20.1 million. We’ve also had record sales near the harbour beaches, including Rose Bay, where we sold 1/746 New South Head Road.
Right now we have 1 Bronte Marine Drive, Bronte, on the market. And it doesn’t get much better than this when it comes to a city beachside location. It’s one of the closest homes to the sand, directly adjoining the Northern end of Bronte Beach.
With five bedrooms, this property represents the ultimate seachange. Living here will make you feel like you’re on holiday every single day, especially as almost every window looks directly across the ocean.
Houses in family-friendly Bronte are often snapped up by buyers who already live in – and love – the suburb and are prepared to pay a premium to stay. But now we’re seeing increased demand from buyers further afield – within and outside of Sydney’s Eastern Suburbs.
And the thing they all have in common is that they’re looking to prioritise lifestyle.
We’re open for business and continuing to help people buy and sell in Sydney’s East, in line with COVID restrictions. If you’re thinking of buying or selling in the Eastern Suburbs, contact my team today.