It’s well-documented that Sydney property prices have been on a steady decline for the past 12 months, but focussing on the overall downward trend doesn’t allow us to see the strong pockets of growth that remain in certain parts of our city.
The suburbs resisting the price decline were recently highlighted in a report from the Australian Financial Review, which showed year-on-year growth in several of Sydney’s Eastern Suburbs, even reaching double digits in some cases.
Growth drivers in Sydney’s Eastern Suburbs
To understand the positive growth that’s still present in Sydney, it’s important to understand the reasons for the current challenging market. What we’ve seen in recent months is partly a response to decreased affordability in a booming market, tightened lending criteria, more difficult conditions for foreign investors and increased apartment supply as construction was finalised on a number of key residential projects. These issues would all be likely to cause market changes in isolation, so they’re particularly potent when combined at a similar time.
However, there is one thing that can overrule the effects of all of these factors: unwavering demand. There is no shortage of demand in the Eastern Suburbs and they hold very broad appeal for a variety of buyers, ranging from singles and young couples to grandparents downsizing from their long-term family homes. No matter what’s happening in the market, there will also be buyers seeking an opportunity in the most sought-after suburbs east of the city.
For some, affordability isn’t a concern and for countless others, the excellent opportunities that abound in the East are worth a higher price. We also find that many buyers here are looking to the future, so a difficult short-term market is a mere bump in the road of a happy long-term life here in the East.
Strongest unit growth in the Eastern Suburbs
The AFR’s report shows that the following Eastern Suburbs are in Sydney’s top 10 for year-on-year growth for units:
- Elizabeth Bay, 12.5%
- North Bondi, 12.1%
- Bondi Junction, 9.1%
Convenience of public transport and shopping is a key driver for demand in these suburbs, as is the proximity to the beach and the harbour. In a time when we’re seeing a lot of families living in apartments, the quieter North Bondi is a popular choice for peace and space that’s more difficult to find in the busier beachside suburbs further south, without compromising on lifestyle.
They are also not areas that have seen too many new developments in recent years, so the supply hasn’t outstripped the demand, but there’s still wonderful housing stock that buyers are more than willing to compete for.
Eastern Suburbs with high capital growth for houses
For houses in the Eastern Suburbs, the AFR report shows the below three suburbs are in Sydney’s top 10 for year-on-year growth:
- Surry Hills, 10.2%
- Paddington, 8.9%
- Vaucluse, 8.2%
It’s clear why price growth remains strong in these suburbs, as they’re home to some of Sydney’s most beautiful houses. Terrace houses are iconic features of Paddington and Surry Hills in particular, such as this truly stunning four-bedroom home on the market at 1 Belmore Place, or this three-bedroom townhouse at 35 Gurner Street. These prestige locations are in striking distance of Sydney’s most impressive dining, shopping and work opportunities, as well as providing many local options for high-calibre schools for families seeking a larger home.
If you’re interested in buying or selling property in a high-growth area of Sydney, contact me or 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.