Bondi Junction Real Estate Market Update: Six-Month Trends & Insights for 2024
My name is Alan Weiss, and I’m excited to bring you the latest real estate update for Bondi Junction. As we move through 2024, the Bondi Junction property market continues to show interesting trends and developments that are worth exploring. Let’s take a closer look at what’s been happening in this vibrant market over the past six months.
Market Overview
In the past six months, approximately 146 properties were sold in Bondi Junction, comprising 43 houses and 103 units. The combined sales value for houses reached around $70 million, while units contributed approximately $144 million, bringing the total sales value in the area to about $214 million. This data indicates a steady level of activity in the market, with both houses and units showing strong demand.
Property Value Growth
When we talk about property value growth, Bondi Junction has experienced significant appreciation over the years.
- Houses: The median value in 2015 was $1,618,939, and today it stands at $2.93 million, reflecting an impressive growth of approximately 81%. This growth highlights the ongoing desirability of houses in Bondi Junction, driven by factors such as location, lifestyle, and proximity to amenities.
- Units: Similarly, the median value of units has increased from $911,642 in 2015 to $1.26 million today, marking a growth of approximately 38%. Although not as dramatic as the growth in house values, this increase underscores the continued attractiveness of unit living in Bondi Junction, particularly for investors and young professionals.
Days on the Market
Another important indicator of market health is the average number of days a property remains on the market before being sold.
- For Units: The average time on the market is 43 days.
- For Houses: The average time on the market is slightly shorter, at 26 days.
These figures suggest a relatively fast-paced market, where properties, especially houses, are being snapped up quickly by eager buyers.
Diving Into the Numbers: Sales Insights
Now, let’s dive deeper into the number of sales to better understand the market’s behavior:
- 3-Bedroom Units: This year, we’ve seen nine 3-bedroom units sold, with prices ranging from $1.35 million to $5.6 million. One of the standout sales was an oversized luxury 3-bedroom penthouse with extensive Harbour views at 71-85 Spring Street, Bondi Junction, which sold in February for $5,600,000. This unit previously changed hands three years ago for $5,200,000, reflecting a price growth of approximately 7.7%.
- Another notable sale was a 3-bedroom unit in the Archibald complex, located across from Westfield Shopping Centre, which sold in May for $3,525,000 after 92 days on the market. This unit was last sold in 2017 for $3,580,000, showing a price decrease of approximately -1.5%. However, after factoring in the stamp duty of $159,275 and selling fees of 2% (around $70,500), the net financial outcome is a total loss of approximately -7.95%.
- On the lower end of the price range for 3-bedroom units, a property at Gowrie Avenue, Bondi Junction, sold for $1.35 million in July. This apartment was leased for $1,000 per week, giving a gross yield of approximately 3.85%. This sale represents the more affordable segment of the 3-bedroom market, appealing to investors seeking stable rental returns.
- 2-Bedroom Units: The largest number of sales this year occurred in the 2-bedroom unit category, with 43 sales ranging from $790,000 to $2,250,000. For example, a 2-bedroom penthouse apartment in the ‘AQUA’ project sold in March for $2,250,000. This unit previously sold in 2014 for $1,470,000, reflecting a price growth of approximately 53%. The 2-bedroom segment remains a cornerstone of the Bondi Junction market, attracting both investors and owner-occupiers.
- 1-Bedroom Units: The 1-bedroom unit category has shown solid rental returns. So far this year, 22 units have sold, with prices ranging from $525,000 to $1,150,000. One notable sale was a 1-bedroom plus study unit with Harbour views in the Eclipse complex, located across the road from Westfield, which sold in April for $1,150,000. This unit was originally purchased in 2002 for $500,000, reflecting a price growth of approximately 130%. It is currently leased for $900 per week, yielding a return of 4.07% on the purchase price. This data suggests that 1-bedroom units continue to offer strong rental yields, making them a popular choice for investors.
Impact of Interest Rates
It’s also important to consider the impact of interest rates on the market. The current average interest rate on home loans in Australia is 6.27%. This rate plays a significant role in shaping market dynamics, as higher interest rates can reduce borrowing capacity, make mortgages more expensive, and ultimately influence buyer behavior. As interest rates rise, we may see shifts in demand, particularly in more sensitive segments of the market. Understanding how these rates impact affordability and market sentiment is crucial for both buyers and sellers.
Final Thoughts
The Bondi Junction real estate market continues to show resilience and growth, despite the challenges posed by changing interest rates and market conditions. Whether you’re looking to buy, sell, or invest, staying informed about the latest trends and data is essential for making well-informed decisions.
As always, if you have any further questions or need more details, feel free to reach out. Thanks for tuning in, and stay informed about the latest developments in the real estate market!
