The Eastern Suburbs Is Outperforming Sydney’s Hot Property Market
Even as the Sydney property market is in the midst of an extraordinary boom, the eastern suburbs is outperforming the citywide average.
Get the latest on price rises and other signs of growth for both house and unit values in our local area.
As both buyers and vendors will know, Sydney’s property market is white-hot right now. The median Sydney house price has risen 11.2 per cent over the last twelve months, and prices in the Eastern Suburbs have outperformed even this rapid rate of growth.
Sydney property market update
Improving economic conditions, low interest rates, rising consumer confidence and the return of expats ready to buy are all creating strong demand for housing. The advertised supply of properties remains below average and the imbalance in supply and demand is causing urgency or FOMO among buyers, contributing to rising property prices.
House prices across the country lifted another 2.2 per cent in May, with Sydney values rising 3.0 per cent. Over the last three months, Sydney houses recorded the largest capital gain of those in any Australian capital city with a rise of 9.3 per cent.
Interestingly, it’s blue-chip areas like the Eastern Suburbs that’s driving the charge.
Which eastern suburbs outperformed the average?
Most of the Sydney suburbs where house prices rose the fastest over the last year are in premium pockets of the city, like the Eastern Suburbs.
Houses in Bondi Junction jumped 19.5 per cent in the last year to reach a new median of $2,425,000, while in beachside Maroubra they rose by 19.4 per cent for a new median of $2,150,000. The price growth in both suburbs far outpaced the Sydney average of 11.2 per cent. House prices in Dover Heights meanwhile increased by more than $500,000 year-on-year, to reach a new median in excess of $4 million.
The Eastern Suburbs has the highest rate of mid-campaign price guide increases
In a sign of the fast pace and strength of the market, vendors across Sydney are in the fortunate position of increasing asking prices in the middle of a campaign.
Mid-campaign changes to price guides happen when buyer feedback is above the original guide, or a higher offer is received. They can be an indicator of price growth.
In April, the southern Eastern Suburbs, including Randwick, Kensington and Clovelly, saw the highest proportion of increased price guides of anywhere in Sydney, at 15.3 per cent. The northern Eastern Suburbs weren’t far behind, recording a 12.7 per cent rise in increased asking prices.
What about units?
While Sydney house prices have been rising rapidly, unit prices have been growing too, but generally at a slower pace. Having said that, units in coastal and lifestyle locations like the Eastern Suburbs have seen good growth. Waverley units experienced the largest price growth of anywhere in Sydney over the last twelve months, jumping 27.1 per cent to a new median of $1,150,000, while apartments in Rose Bay saw a 15.8 per cent lift and a new median of $1,505,000.
Nevertheless, the price gap between houses and units in Sydney is now at a record high. In the Eastern Suburbs, the median house price ($3,147,500) and the median unit price ($1,170,000) are separated by a price gap of $1,977,500. Nowhere is the gap bigger than in suburbs like Vaucluse and Bellevue Hill, where freestanding homes are now valued at four times the median apartment price.
We expect to see unit prices rise as house prices remain high and investors return to the market, leading to increased competition for apartments from owner-occupiers and investors alike.
If you’re thinking of buying or selling in the eastern suburbs, get in touch.