Which Of Sydney’s Eastern Suburbs Are About To Hit The $3 Million Mark?
Find out which five eastern suburbs are set to hit the $3 million mark this year, which of our suburbs are already at that median or above, and the property market conditions behind these price rises.
The Sydney property market defied expectations in 2020 to end with both house and unit prices up. Now economists are predicting a bumper year for the housing market in 2021, with prices set to rise sharply and the number of suburbs with a $3 million median house price to double. We take a look at the current market conditions and predictions for the year ahead, which of Sydney’s eastern suburbs are set to join the $3 million club this year and which ones are already there.
What happened in the Sydney property market last year?
There were fears that property prices would fall dramatically during the pandemic last year, and we did see Sydney median house prices drop by half a per cent from March to May. However, by the end of the year market conditions were looking much stronger and the Sydney median house price ultimately rose 4.1 per cent over the course of 2020.
Interestingly, the number of Australian suburbs with a median house price of $3 million or more doubled in 2020. Thanks to a large increase in savings, increased superannuation and growth in house prices, total household wealth in Australia hit a record high in November.
What is predicted for 2021?
Those record savings and household wealth levels, combining with ultra low-interest rates, will continue to drive the housing market this year. Experts are forecasting sharp price accelerations, with Westpac’s economists saying recently that the residential property market is moving into a sustained boom and predicting dwelling prices to rise by 20 per cent over the course of 2021 and 2022.
Which of Sydney’s eastern suburbs will hit the $3 million median house price in 2021?
In great news for local property owners, South Coogee, Coogee, Bondi, Bondi Beach and Waverley will all see their median house price hit the $3 million mark this year, assuming their 2020 growth trajectory continues.
In 2020, South Coogee’s median house value increased by 15 per cent to reach $2.7 million. Next door in Coogee it was a similar story, with a 14.9 per cent increase in prices leading to a $2.9 million median value. Up the road, in Bondi, a 12.2 per cent lift in median house prices led to a new $2.95 million median, and at Bondi Beach, there was a 16 per cent increase to hit a $2.77 million median. Neighbouring Waverley saw an incredible 40.1 per cent rise in its median house price to reach $2.9 million.
Given the predicted strong market conditions, it is possible that the number of $3 million-plus suburbs across Australia will once again double this year.
Which of Sydney’s eastern suburbs already have a median house price of $3 million or more?
In 2020, Sydney’s eastern suburbs showed the highest median house values of any Australian capital city, with Darling Point ($7.06 million), Bellevue Hill ($5.72 million), Vaucluse ($5.39 million) and Double Bay ($4.76 million) topping the national list. Many of our other suburbs already have a median house price of $3 million or more, including harbourside areas like Rose Bay, parkside suburbs such as Woollahra and Centennial Park, and beachside locales like Dover Heights, Clovelly, Tamarama and Bronte.
Three of Sydney’s eastern suburbs featured in the REA Insights nationwide Strongest Luxury Growth Suburbs list of 2020. Woollahra’s median house price rose 34.5 per cent over the year to $3.7 million, putting it at number four on the list. It was followed at number five by Clovelly, which saw its median house price rise 33.8 per cent to $3.68 million. Dover Heights came in at fifteenth, with a lift of 15.1 per cent putting its median house price at $4.2 million.
More than half of the 30 Australian suburbs with median house prices over $3 million experienced double-digit price growth in 2020, while only five saw a decline.
If you’re looking to buy or sell in Sydney’s eastern suburbs, don’t hesitate to get in touch with our expert team today.