Insight

17.08.16  Property Trends

 

How The Eastern Suburbs Boomed

Property values across the Eastern Suburbs increased significantly during Sydney’s real estate boom, although some suburbs benefitted more than others.

Many locals now have significant new equity in their properties, enabling further investment in real estate; renovations to their residence; or the purchase of a larger, more expensive home.

Top 10 Best Performing Suburbs

Feb 2013 - Feb 2016 – Houses

Suburb Number sold 3 year growth
Matraville 62 74%
Zetland 16 73%
Waterloo 16 73%
Waverley 44 70%
Rosebery 45 67%
Rose Bay 82 66%
Tamarama 15 65%
Redfern 104 64%
Chifley 62 74%
Kingsford 94 63%

Top 10 Best Performing Suburbs

Feb 2013 - Feb 2016 – Apartments

Suburb Number sold 3 year growth
Tamarama 16 79%
Double Bay 127 71%
Vaucluse 79 51%
Surry Hills 307 47%
Clovelly 52 47%
Centennial Park 49 47%
Elizabeth Bay 156 46%
Rushcutters Bay 84 45%
Waterloo 473 44%
Redfern 149 43%

Source: CoreLogic RPData

The economic effects

Following Sydney’s incredible boom, property owners should consider how they want to leverage new equity in their homes and investments while interest rates remain historically low.

An increasingly volatile share market – which hit a six-year low in August 2015 due to China’s slowing economy, is definitely encouraging some investors back to property.

Mum-and-dad investors are increasingly seeing shares and managed funds as a gamble compared to real estate’s reliable returns and long-term stability.

With interest rates so low, alternative investments such as term deposits and cash are providing inadequate returns so property is proving far more appealing.

The lower Australian dollar has had a direct impact on the Eastern Suburbs market, encouraging both Chinese and Australian ex-pats to buy this year.

Interest rates

  • May 8, 2013 – reduced by 0.25% to 2.75%
  • Aug 7, 2013 – reduced by 0.25% to 2.5%
  • Feb 4, 2015 – reduced by 0.25% to 2.25%
  • May 6, 2015 – reduced by 0.25% to 2%
  • May 4, 2016 – reduced by 0.25% to 1.75%
  • August 2, 2016 - reduced by 0.25% to 1.50%

Source: RBAShare market volatility

  • ASX 200 – May 2015 to May 2016
  • High point 5,803 on May 29, 2015
  • Low point 4,706 on Feb 10, 2016

Source: Westpac, ASX 200, 12 months to May 1, 2016

Download our 2018/2019
Eastern Suburbs Market Report

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