After two years of declining prices, Sydney’s property market is on the up, with a few eastern suburbs leading the charge.
Here’s where to find property price growth in Sydney now.
Strong growth in Sydney’s East
Domain data shows that the suburb of Vaucluse led house price growth in Sydney in the 12 months ending in June 2019. Vaucluse experienced a 19.9% increase bringing the median house price in the suburb to $6 million. This growth is excellent in any market, but especially so when drops are occurring across all parts of the harbour city. What’s more, the second-highest growth rate was more than 5% lower than that of Vaucluse, sitting at 14.1% in Avoca Beach.
And it’s not just Vaucluse representing the Eastern Suburbs in growth. Unit prices in Elizabeth Bay grew 17% in the same period, finishing at a median of $1.1m, the second-highest growth in Sydney for units. Woollahra also experienced unit growth of 16.6% to $1.3m, coming in third overall for unit growth.
These strong statistics go against some experts’ predictions from early 2019, in which the East was tipped to suffer the biggest drops in 2019 after experiencing more modest falls throughout 2018 – 1.8% for houses, compared to 9.1% in the city.
However, the news isn’t all positive for the East in this recent report. Rose Bay also got a mention for apartment prices, but it’s at the other end of the spectrum to its neighbours in Elizabeth Bay and Woollahra. In the 12 months to June, apartment prices fell 20.3% in Rose Bay – the second-highest rate of decline in Sydney.
What’s behind price growth in Vaucluse?
It’s not a coincidence that the suburbs with strong growth are among the East’s – and the city’s – most prestigious. Vaucluse has long been a highly sought-after suburb, with realestate.com.au data suggesting that high demand leads to listings receiving 4.4 times the amount of traffic here than they do across the state overall. Realestate.com.au has also seen an increase in searches for premium suburbs since May, suggesting that demand hasn’t waned in these parts of the city.
Vaucluse in particular is home to some of Sydney’s most luxurious mansions and record-breaking property sales. It has waterfront appeal, proximity to the city, beautiful parks and stunning views, as well as access to nearby Watsons Bay, Bondi and Rose Bay. The houses in Vaucluse are typically large properties, near excellent schools, but Vaucluse also offers a range of property options with some duplexes and many units. Vaucluse also has a village feel with an increasing number of great cafes.
What does the growth mean for Sydney’s property market?
As premium locations and prestige properties are often the first to recover from price slumps, this strong result from certain corners of the East could be an indication of a recovering property market. This is backed by Domain’s citywide data – in the 12 months to June, the median house price fell 9.1%, but was down just 0.4% in the final quarter. Suburbs like Vaucluse are helping to drive this recovery by bringing in good growth and keeping buyers coming to the East.
When it comes to the Eastern Suburbs’ specific market, it’s more critical than ever to do your research when there’s the potential to get such different results just down the road. There is good news all over the East – it just depends on what your property goals are.
For example, with a flatter market for unit prices, Rose Bay offers great opportunities for first time buyers wanting to buy into this popular location.
For guidance on the right approach for your strategy and goals, get in touch with our team today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.