Sydney’s Eastern Suburbs Record Big Price Rises
Sydney house prices have experienced their steepest annual growth in almost thirty years, and the city’s East continues to come out on top.
Find out how the property market in our area is performing, and which suburbs in the East recorded the strongest house price growth in the last year.
You’ve heard us say it before – it’s been an outstanding year for the Sydney property market. Record-low interest rates and a limited supply of property for sale have trumped the potential dampening effect of COVID to create a real estate boom.
New data from Domain shows that house prices across more than 50 Sydney suburbs have risen by at least 20 per cent in the last year. It’s no surprise to find a few of our Eastern Suburbs included in the list.
Sydney property market update
This year Sydney house prices have risen, and then risen some more. In fact, Sydney has undergone its strongest annual house price growth in almost thirty years, outstripping increases seen in the previous booms of 2015 and 2002. Sydney-wide, prices are up 24 per cent over the past year. In particular, median house values in premium suburbs have seen radical growth. During the June quarter, house prices in the Eastern Suburbs rose by an incredible $18,807 every week. While this may present challenges for those trying to get into the market for the first time, it’s great news for property owners.
The eastern suburbs with the steepest house price growth
In the list of Sydney suburbs with the strongest price growth in the last year, two suburbs from the East make the top five. Dover Heights comes in at number two, with an astonishing 35.8 per cent hike driving its median house price to $4,800,000. Bronte’s median house price also rose dramatically – by 35.5 per cent, to be precise – to reach $4,660,000, placing it at number four on the Sydney-wide list. The median house price in both Dover Heights and Bronte rose by more than $1.2 million over the past year, and this rapid rate of growth means that the houses in these two suburbs made more than the average annual income of the people who lived in them.
What makes these areas so popular?
COVID has changed the way we live and work – we’ve never spent as much time at home as we have in the last 18 months. As a result, property buyers are now prioritising two things – houses, for their space, and location, for the lifestyle it offers. And these are two of the reasons why we’ve seen such dramatic price rises in Dover Heights and Bronte over the past year.
Both offer beautiful houses in stunning lifestyle locations close to Bondi or Bronte beach. The now-familiar story of buyer demand outstripping the supply of houses on the market has also contributed to the price hikes in these suburbs. Dover Heights saw an increase in sales at the very top end of the market, which would have contributed heavily to the rise in its median price. 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.
How is lockdown affecting the market?
Despite the current lockdown, we are still seeing strong buyer demand for properties in the Eastern Suburbs, and the limited supply of homes for sale continues to put upward pressure on house prices. If you’re thinking about selling, there’s no reason to wait. Consumer confidence in the real estate market, in particular, remains strong, and buyers are keen to purchase now so they can move into their new home before Christmas.
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.