Insight

31.05.16  Local Buzz

 

The East's Restaurant Scene Renaissance

A significant shortage of homes for sale has put upwards pressure on prices and contributed to solid auction clearance rates consistently around 70% throughout the first half of 2016.

Continuing historically low interest rates and strong ongoing demand from ex-pats, local upgraders, downsizers from across Sydney and Chinese buyers has also kept prices strong.

We estimate there was a 30-50% decrease in listings across the market during the first half, largely due to the end of Sydney’s boom, the disruptive Easter holiday calendar and the announcement of a Federal Election.

The usual decline in listings over Winter should keep supply/demand in favour of sellers.

As long as the dollar sits below 75 US cents, Australian ex-pats will remain a driving force in our market. Clients are routinely flying in from Singapore, Hong Kong and Japan and buying within a few days. They are interested in a range of suburbs with good amenities and decent rental returns.

Chinese buyers continue to target homes with water views and elevation. Unremarkable streets in suburbs such as Vaucluse are commanding unusually high prices solely due to their hilltop position. Chinese buyers are also active in the education precincts of Kensington and Kingsford.

A Manhattan effect is underway with an increasing number of downsizers from all over Sydney seeking luxury apartments in the Eastern Suburbs.

Harbourside areas such as Elizabeth Bay and beachside favourites like Bondi and Coogee are high on their list. They are also buying modern terraces in Paddington and Woollahra and former housing commission homes in Millers Point, which McGrath has been involved in selling.

Many local home owners have been busy renovating, with Domain/ABS data showing Double Bay and Bellevue Hill residents spent $44.8m on home improvements in 2015. Other renovation hot spots include Rose Bay, Vaucluse and Watsons Bay where a collective $29m was spent.

The latest Urban Living Index ranked 6 Eastern Suburbs areas among Sydney’s Top 20 for liveability.

  • Surry Hills
  • Potts Point-Woolloomooloo
  • Randwick
  • Darlinghurst
  • Double Bay-Bellevue Hill
  • Bondi-Tamarama-Bronte

Source: Urban Taskforce Australia/McCrindle Research 2015

A selection of top sales by Ben Collier

2016

9 Coolong Road, Vaucluse

SOLD for $36 million

2015

52A The Crescent, Vaucluse

SOLD for $15.3 million

* Highest auction sale in 2015 & 4th highest auction price ever achieved in NSW

2015

44-46 Lang Road, Centennial Park

SOLD for $12 million

* New suburb record

2014

10-12 Arnold Street, Queens Park

SOLD for $6.7 million

* New suburb record

2009

‘Jenner House’, 2 Macleay Street, Potts Point

SOLD for $15 million

* New suburb record

Download our 2018/2019
Eastern Suburbs Market Report

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