When deciding where to buy and whether to sell, knowledge of long-term market changes matters.

We can’t go back in time to buy in the top performing markets, but a look at some of the highest value suburbs in Sydney’s east does reveal some intriguing capital growth trends.

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Harbourside: Watsons Bay is one to watch

Without question, the biggest story in terms of harbourside suburbs was Watsons Bay, where house prices jumped from just under $2.5 million in early 2015 to almost $4 million today, according to CoreLogic figures. Our recent off-market sale for a four-bedroom property at 8 Sailsbury Street topped even this estimate, selling for $4.7 million in September 2017. Average annual growth here now stands at over 31.86%.

Vaucluse has seen less dramatic but still impressive growth, with average prices creeping up from $3 million to the $4.5 million mark. Double Bay’s house prices have also been consistent, crossing $3.75 million in mid-2017.

Beachside: Tamarama takes off in 2018

Capital growth across well-known beachside addresses such as Bronte, Bondi and Coogee has been consistent over the past three years, with all three registering a sharp uptick in the past six months. Time will tell whether this is the start of a continued upward trend or a temporary fluctuation.

The most impressive beachside capital growth came from two less likely addresses: Tamarama and Dover Heights. Dover Heights jumped sharply towards the end of 2017, taking average house prices over the $3.75 million mark and bringing average annual price growth to 23.02%. Tamarama has been even more impressive at the start of this year, edging close to an average house price of $6 million.

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Parkside: Kensington shows steady growth

Parkside addresses are growing in popularity with buyers looking to break into the eastern suburbs, so it’s not surprising that Randwick, Bondi Junction and Paddington have all shown steady capital growth over the past three years. In each of these areas, houses have consistently outperformed units, reflecting the needs of younger families who are focused on the area.

While its growth has been less dramatic than in other key markets, Kensington is still the biggest story in terms of capital growth in parkside suburbs. Since 2015, house prices have increased from around $2 million to just under the $3 million mark. Average annual growth is steady at 8.35%, but 12-month growth to March 2018 is significantly higher at 18.95%, making Kensington an enticing prospect for investors as well as families.

Inner city: Potts Point tops a steady market

In the inner city, Potts Points has seen impressive growth over the last three years, with average house prices at well over $4.5 million, up from just over $3 million at the start of 2015. Meanwhile, Surry Hills has reached a new high for house prices, crossing the $1.5 million barrier as early as 2016 and continuing to rise since.

Darlinghurst has also shown significant growth, with house prices now just over $2 million, up from around $1.3 million three years ago. Unit prices are up 5.59% in the last 12 months – a trend we saw reflected in the sale price for 5/1 Printers Lane. This one-bedroom warehouse studio sold for $1.35 million in October 2017.

While past performance doesn’t necessarily indicate future trends, these changes are worth keeping in mind if you’re planning to buy in the east, and relevant to sellers who want to time their property sale for the highest possible return.

Sydney’s Eastern Suburbs Market Snapshot

A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.

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