11.09.2022 Local News

How Is The Property Market Downturn Impacting The Eastern Beaches?

How Is The Property Market Downturn Impacting The Eastern Beaches?

We’ve all seen the headlines about Sydney’s declining property prices, but as we enter summer 2022/23 how is the market in our eastern beachside suburbs, like Bronte, Tamarama, Clovelly, Bondi Beach and Coogee, tracking?

Sydney property prices have taken a well-publicised decline since they reached their peak in February, but the Sydney market is anything but uniform, and the slowdown is not affecting every part of the city in the same way. As we enter summer 2022/23 we take a look at how the property market in the eastern beachside suburbs of Bronte, Tamarama, Clovelly, Bondi Beach and Coogee is faring.

The eastern beachside suburbs rode the wave of Sydney’s property market boom

In late 2020, Sydney property values began rising in what would become a 16-month-long real estate boom. Fuelled by record-low interest rates, house values skyrocketed. By the time property prices hit their high point in February this year, Sydney homes had increased in value by 27.9%, according to CoreLogic.

Certain parts of Sydney were more sought after than others, however, and one area that really saw demand go through the roof was the eastern suburbs’ beaches. Living in lockdown, working from home and restricted by a 5km radius, we all experienced a renewed focus on our living quarters. Our lifestyle at home, including how much space we had and our access to green spaces, beaches and parks, became paramount.

While record numbers of Sydneysiders opted to leave the city altogether for tree changes in regional areas, others plumped for a sea change in the city. Demand for homes in the eastern beachside suburbs of Bronte, Tamarama, Clovelly, Bondi Beach, and Coogee spiked. Some buyers were searching for their dream home to move into straight away; others were looking for a rundown home on a prime site ripe for a grand design or knockdown rebuild. Others still were on the hunt for the perfect second home or sound investment property. The thing they all had in common was the desire to buy a property that offered that holiday-everyday lifestyle that only comes from living beachside.

Thanks to the increase in buyer demand, historic low interest rates and a shortage of available stock on the market, property prices in the eastern beachside suburbs rose dramatically.

In September last year, Domain reported that buyers were paying up to four times the Sydney median house price to secure a property within 5km of the beach. Meanwhile, Nine News reported that median home prices in Bronte grew by 946% between 1991 and 2021, a greater increase than any other Sydney suburb over the same period. That lift took Bronte from the 81st most expensive Sydney suburb in 1991 to the 5th in 2021. Tamarama, Bondi Beach, Coogee and Clovelly all saw a massive lift in their median house prices too.

Since then, of course, the heat has come out of Sydney’s property market. Following six successive interest rate rises, CoreLogic reports that Sydney home values are now down 10.1% on their February peak. So, what’s happening with property values in the eastern beachside suburbs now?

How are property prices in the eastern beachside suburbs tracking now?

Just as super low interest rates helped drive Sydney property prices up, rising interest rates are now contributing to declining property values. Areas where home prices were stoked almost exclusively by the ready availability of cheap credit are more susceptible to price falls as interest rates rise. In contrast, areas like Bronte, Tamarama, Coogee, Bondi Beach and Clovelly, where lifestyle factors and low stock levels also drove price rises, continue to hold their value.

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Stock levels in the eastern beachside suburbs are still tight. We certainly haven’t seen the usual flood of spring listings come to market this year – in fact realestate.com.au is calling it a ‘trickle’. While there are fewer buyers in the market than last year, there are also fewer homes for sale. This is helping to keep prices steady as buyers compete for available properties.

The other factor in the eastern beachside suburbs’ favour is location and lifestyle. Beachside living has long been sought after, but COVID turned it into a white-hot commodity. And even with lockdown life behind us, the desire to live in a holiday-like location has not abated. With working from home a few days a week the new norm and international travel still 50% down on pre-pandemic levels, our home environment continues to take centre stage. Being steps away from the sand and surf, particularly as the weather warms up, is helping to buoy property prices in suburbs like Bronte, Tamarama, Clovelly, Bondi Beach and Coogee.

Bronte, for example, is well and truly defying the softening market with a whopping median house price rise of 31.5% over the last year to reach $6,575,000. Units in the same suburb are up 16.5% over the same period. Median house prices are up 11.5% year-on-year in Clovelly, 5.7% in Coogee and 2.6% in Bondi Beach. Meanwhile, unit prices have risen 10.4% in Bondi Beach and 2.8% in Coogee since October 2021.

Where to next for the eastern suburbs beachside property market?

We continue to see strong buyer demand and good sales results for quality homes in beachside lifestyle locales like Bronte, Tamarama, Clovelly, Bondi Beach and Coogee. We have two of them on the market right now.

30 Wolaroi Crescent, Tamarama

When it comes to prime beachside locations, it’s hard to beat the front-row spot possessed by 30 Wolaroi Crescent, Tamarama. Uniquely positioned overlooking the greenery of Tamarama Park and the sand and surf of Tamarama Beach, every day will feel like a holiday in this luxurious home, especially since it doesn’t have any neighbours to its north, east or south. This Tony Masters-designed haven features five bedrooms, a heated pool, multiple outdoor entertaining areas and a level 120m stroll to the beach.

68 Arden Street, Clovelly

Walk the kids to nippers at Clovelly or to Gordons Bay for a dip from 68 Arden Street, Clovelly. Tucked away behind the sweet original façade of this home lies a striking architecturally designed family oasis. Its five bedrooms and five bathrooms include a luxe parent’s retreat, while the chef’s kitchen, 12 metre pool and leafy gardens were designed for effortless summer entertaining.

Thinking of buying or selling in Sydney’s eastern beachside suburbs? Get in touch today.