Cash buyers are pivotal in the Eastern suburb’s real estate market, maintaining resilience despite high interest rates. According to PEXA’s 2023 Cash Purchases Report, over one-quarter of all residential properties in Australia’s three largest states were bought entirely with cash in 2023, totalling $129.6 billion. New South Wales led the charge with $54.9 billion in cash purchases, representing 27.7% of all residential transactions. This trend underscores a significant market shift, with cash buyers exerting increasing influence on property values and competition.
In Sydney’s eastern suburbs, cash buyers have been particularly active. PEXA’s report highlights some key statistics:
In Bellevue Hill, 80 cash buyers secured properties at an average price of $3.63 million each.
In Bondi Beach, 179 cash transactions totalled $621 million.
In Darling Point, 84 buyers paid cash, with the average sale price being $3.35 million.
These buyers come from diverse backgrounds, including downsizers who have paid off their mortgages, investors, developers, overseas buyers, and expats. Downsizers, in particular, are not subject to large mortgages since they are selling their longtime family homes and looking for something smaller. They are the only buyer group that doesn’t need to monitor the RBA’s moves each month closely.
This is especially true in Sydney, where house prices have skyrocketed more than in any other capital over the last two to three decades. This surge has put a significant amount of money in their pockets, allowing them to make swift decisions and complete purchases quickly.