The term ‘Sydney’s eastern suburbs’ actually refers to a range of real estate markets, each with their own growth hotspots and benefits for buyers and sellers.
But even within these smaller markets, there are still areas that tend to be forgotten in favour of suburbs with established reputations.
Let’s take a closer look at some of the east’s hidden gems.
Inner City: Edgecliff and ‘Paddinghurst’
You won’t find the name ‘Paddinghurst’ on any property search map, but the area where Darlinghurst becomes Paddington is increasingly sought-after for its quiet, mews type streets. Edgecliff is another excellent inner city option, often overlooked in favour of more glamorous addresses in neighbouring Double Bay or Woollahra.
This proximity to the city might suggest little room for capital growth, but the fact is that, over the past year, both houses and units in these suburbs have shown strong increases in median price. Paddington units increased by a massive 24.68% while in Darlinghurst house prices were up by 10.52% and Edgecliff unit prices increased by 13.22%.
Consider Edgecliff and Paddinghurst if: You want to remain within walking distance of the city, but not so close that the pace of the CBD is part of your day-to-day.
Harbourside: Rushcutters Bay and Rose Bay
Sandwiched between Elizabeth Bay and Darling Point, tiny Rushcutters Bay still rivals its neighbours as one of the best harbourside locations available. Residents are within a few minutes’ walk of Kings Cross station along with Rushcutters Bay Park. Houses in the area are particularly tightly held, and units are showing strong average annual growth of 8.35%.
Slightly further from the city, Rose Bay is often thought of only in terms of prestige houses, but savvy buyers know to consider the suburb for its stock of units, currently showing 12-month growth of 17.40%.
Consider Rushcutters Bay and Rose Bay if: You’re willing to give up the proximity to the CBD offered by Woolloomooloo for a quieter, leafier option on the other side of Darlinghurst Road, or go even further from the city for a Rose Bay unit and catch a ferry to work.
Beachside: Dover Heights
This almost-beachside suburb has plenty of benefits to offer buyers, tenants and investors, including stronger rental yields than that offered by its world-famous neighbours, Bondi and Coogee. With a current median price of just over $4 million for houses, Dover Heights remains one of Sydney’s more exclusive beachside addresses. For those who are able to secure a house in the area, capital growth remains particularly strong, with 24.39% recorded over the past year.
Consider Dover Heights if: Your ideal location is a beachside suburb with strong capital growth over the long term, without the added price pressure a tourist population brings to the neighbourhood.
Parkside: Kingsford and Kensington
Randwick may be everyone’s first thought in terms of eastern parkside suburbs, especially when it comes to securing a family home within easy reach of the city. But neighbouring Kingsford and Kensington shouldn’t be overlooked. The upcoming completion of the South East Light Rail is already increasing Randwick prices, which means its neighbours won’t be far behind. In fact, our Eastern Suburbs Market Snapshot shows that Kensington’s 6-month growth of 5.7% for median house prices in the first half of 2017 outstripped Randwick’s of 4.1%.
Consider Kingsford and Kensington if: A family home or long-term investment in the eastern suburbs is top on your priority list, and your budget limit sits below $2.5 million.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.