Why Sydney's Eastern Suburbs Is More Than One Real Estate Market

The media loves to discuss Sydney’s property market in very general terms.

Some analysts might mention differences between east and west or inner and outer Sydney, but few go into detail about the micro-markets that make up a particular area.

Here’s what you need to know to understand the four key markets that operate in Sydney’s eastern suburbs.

Harbourside: The ultimate combination of lifestyle and location

The most sought-after market in the eastern suburbs has to be the area neighbouring Sydney’s iconic harbour. These are the suburbs boasting blue chip price tags, expansive floor plans and stunning views, from Elizabeth Bay through to Darling Point, up to Vaucluse and Watsons Bay.

In these areas, downsizers are on the hunt for luxury apartments while families, overseas buyers and ex-pats are focused on finding either houses or units that maximise lifestyle and location.

Key market features

  • Median prices of over $4 million for houses, $1 million for units.
  • Rental yields ranging from 2.5% for houses and from 3.4% for units.
  • Investors tend to buy here to secure their savings as this is one of the most stable real estate markets in Australia.

Parkside: A family-friendly mix of Sydney’s best features

Parkside suburbs – areas near Centennial Park like Woollahra, Paddington, Bondi Junction and Randwick – are a mixed group that share certain key features. Generally quieter than their harbourside and beachside neighbours, these suburbs attract buyers looking for a balance of city lifestyle in a laid-back atmosphere.

Fast-growing Randwick and Kensington are high on the list for families who want room to move, while at the northern end of the park, Paddington and Woollahra continue to attract buyers looking to live just outside the buzz of the CBD.

Key market features

  • Median prices of over $2 million for houses, just under $1 million for units.
  • Rental yields ranging from 2.4% for houses and from 2.8% for units.
  • Investors have the CBD and South East Light Rail project on their radar, which will promote strong capital growth around Randwick.

Inner city: Walkable, leafy and close to the action

Buyers looking at Darlinghurst, Surry Hills and Potts Point are often willing to compromise on space to get access to the best of Sydney’s café and restaurant scene, which is all within walking distance. The demographic tends to skew slightly younger than harbourside or parkside suburbs, however, downsizers are also a key part of the mix.

For first-time buyers, the inner city can be a highly challenging market to break into. Those with the budget are focused almost solely on units, looking for views and amenities rather than that extra bedroom.

Key market features

  • Median prices of over $1.5 million for houses, just under $800,000 for units.
  • Rental yields ranging from 3.1% for houses and from 3.8% for units.
  • Savvy investors know how popular these areas are with tenants and buy to maximise rental yields.

Beachside: Iconic Sydney meets suburbia

While names like Bondi and Coogee are instantly recognisable to buyers worldwide, Sydney’s beachside suburbs aren’t all about glamour. Quieter areas like Waverley and Dover Heights still have a suburban feel away from the hype of the main beachfront.

Like the suburbs that make up the parkside market, beachside is something of a mix. Established owners live alongside young renters and families who have claimed their place near one of Sydney’s perfect beaches.

Key market features

  • Median prices of just under $3 million for houses, just under $2 million for units.
  • Rental yields ranging from 2.8% for houses and from 3.2% for units.
  • Investors often look outside the most well known locations to find suburbs with more room for sustained capital growth.

Next time you hear the phrase ‘Sydney’s real estate market’, you’ll know the reality isn’t that simple.

For more details about buying or selling in any of these areas, get in touch with our team today.

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