Waverley: One Of Australia’s Top Markets For Capital Growth

If you were surprised to see just two Sydney council areas on CoreLogic’s recently released list of the top 25 winners (and losers) in Australian property, you’re not alone.

Liverpool and Waverley might not be the most sought-after markets in NSW, but according to this report, they’ve been the best performers when it comes to capital growth over the past 20 years. So how has Waverley outperformed the rest of Sydney’s east?

The location factor: room to move

Waverley Council takes in several suburbs – from Bondi Junction, Queens Park and Waverley across to Bronte, Bondi, and north to Dover Heights and parts of Vaucluse. For many buyers, these suburbs represent the perfect combination of beach and parkside living, while still being walkable to great cafes and shops and close to the CBD for work. Now that prices across the east are reaching fever pitch, buyers who bought into these areas years ago are reaping the rewards.

By the numbers: Waverley’s profits and price growth

CoreLogic puts Waverley’s house price growth over the past two decades at 9.5% – just under Liverpool’s 9.6% – with median house prices now over the $2.6 million mark. This puts it in 22nd place on the list of suburbs with the highest capital growth over the 20 years to December 2016.

Waverley’s ranking among Australia’s top 25 markets for capital growth echoes CoreLogic’s data on profits in the eastern suburbs. This ranking showed 99.1% of sellers made a profit on their sale in the quarter to June 2016, which is just under the 99.5% seen across Waverley’s more fashionable neighbour, Woollahra.

Comparing population across these two areas is even more revealing. The Waverley Council area has the highest population density of any suburb in the east with 79.35 people per hectare, versus just 48.86% in Woollahra. When we consider that Waverley saw 17.46% growth in house prices in the year to December 2016 while Woollahra saw 17.19%, it’s even more clear that Waverley is one of the most competitive areas in the east.

Is Randwick the next competitor?

There are lessons to be learned here for buyers with a long-term plan for their property in Sydney’s east. Waverley’s performance could well be matched by another suburb now showing early signs of capital growth – nearby Randwick. Randwick is already gaining a reputation as one of the most liveable suburbs in the east, and the introduction of the South East Light Rail connection straight to the CBD will only boost its reputation.

Will Waverley continue to grow?

Even with solid growth over such a sustained period, there are no signs that Waverley property prices will slow down any time in the near future. Attendance at inspections is still extremely strong, consistent with what we’re seeing across the east.