While median house price decline has been a primary feature of the Sydney-wide property market lately, data shows that it’s not the case for parts of Sydney’s east.
Some suburbs experienced growth in the year to March 2019, bucking the trend that saw units perform more strongly across the city.
House vs unit growth in Sydney’s east
In a recent housing prices report for the year ending March 2019, Domain found that units typically saw stronger growth in the 12-month period than houses did in most parts of Sydney.
In part, this continued steady growth is because the property boom particularly affected houses – house prices increased dramatically over the past 6 or 7 years, so they had further to fall when the market dropped. Units, on the other hand, had maintained a lower level of growth that proved more sustainable, especially when supported by first home buyers who are as keen as ever to enter the market. In some suburbs, this has kept growth in the green for units, while in others, it’s equated to lower levels of decline than that experienced by houses.
But the opposite is true in parts of the eastern suburbs, namely in prestige suburbs that can be more resistant to market changes. The report shows that houses far outperformed units in Paddington and Bellevue Hill, in contrast to what was happening in most of the city.
Growth for prestige houses in the East
This growth can be attributed to the blue chip nature of these eternally popular suburbs, because it means demand is less likely to fluctuate. Paddington and Bellevue Hill are both prestige locations in the East, with some of the city’s most beautiful and well-appointed homes. The houses here are, on the whole, exceptional – Victorian terraces are common in Paddington, while Bellevue Hill listings are often larger historic or award-winning homes.
Houses are also particularly sought-after in Bellevue Hill because of the reasonably high percentage of families (47.4%, according to the 2016 Census), while in Paddington, it’s a story of old-fashioned supply and demand. While Paddington is known for its many classic Victorian terrace houses, at the 2016 Census, there were only 146 freestanding houses in Paddington – 2.8% of all dwellings. This keeps competition strong, so prices hold firm.
The median house price is currently $6,044,00 for Bellevue Hill and $2,112,500 for Paddington, according to realestate.com.au data.
The good news for eastern suburbs buyers and sellers
For sellers, this house price growth is particularly welcome news as strong growth usually means a higher sale price. While sellers in other parts of Sydney might be holding off in anticipation of the market turning around, there’s no need to wait in Paddington and Bellevue Hill. Sellers can take advantage of the pool of buyers currently in the market, without compromising on price.
And the news is positive for buyers too. The stable growth currently shows no signs of dropping, so getting in now can mean securing a house that will be in demand in the future and be more likely to hold on through more difficult times.
Houses for sale in Paddington and Bellevue Hill
We regularly sell beautiful houses in Paddington and Bellevue Hill, with a range of price points, sizes and features. Some of our recent listings include:
50 Renny St, Paddington
3 bed, 1.5 bath, 1 parking
116 Hargrave St, Paddington
4 bed, 3.5 bath, 1 parking
57 Bundarra Rd, Bellevue Hill
5 bed, 4 bath, 2 parking
If you’re looking to buy a house in sydney’s east, contact my team today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.