Eastern Suburbs Homeowners Reluctant to Sell, Fueling Property Price Increases
Homeowners in Sydney’s Eastern Suburbs are showing reluctance to sell, which is contributing to rising property prices. CoreLogic reports that property prices across Sydney increased by 9.6% in the year leading up to 31 March 2024, elevating the median citywide dwelling value to $1,139,375.
Most of this growth took place between April 2023 and September 2023. However, the pace has moderated in the past six months. From October 2023 to March 2024, the citywide median dwelling price grew by just 1.7%, with a modest 0.9% increase in the March quarter.
This slower growth rate aligns with Sydney’s auction clearance rate, which Domain indicates has been between 60% and 70% for most of this year. While this still suggests a strong market, it’s a significant drop from the frenzied market of 2021, when auction clearance rates frequently exceeded 80% and sometimes reached over 90%.
In Sydney’s Eastern Suburbs, the market is somewhat tighter than the citywide average, with a higher auction clearance rate of 75.2% for the weekend of 27 April. This is driving prices in many suburbs and market segments to rise more quickly than the Sydney average. However, as shown in the table below, these gains are not consistent, with some suburbs even experiencing declines over the past 12 months.
House price growth in Sydney’s eastern suburbs to March 2024
Suburb | Median House Price March 2023 | Median House Price March 2024 | Difference |
Bellevue Hill | $8,910,000 | $10,335,000 | 16.00% |
Bondi | $3,530,000 | $3,775,000 | 6.90% |
Bondi Junction | $2,332,500 | $2,941,000 | 26.10% |
Bronte | $5,100,000 | $5,500,000 | 7.80% |
Clovelly | $3,845,000 | $4,505,500 | 17.00% |
Coogee | $3,560,000 | $3,580,000 | 0.60% |
Double Bay | $5,370,000 | $6,500,000 | 21.00% |
Kensington | $3,512,500 | $3,981,000 | 13.30% |
Paddington | $2,930,000 | $3,100,000 | 5.80% |
Queens Park | $4,025,000 | $4,040,000 | 0.40% |
Randwick | $3,182,500 | $3,303,750 | 3.80% |
Rose Bay | $5,850,000 | $4,875,000 | -16.70% |
Vaucluse | $8,437,500 | $9,500,000 | 12.60% |
Woollahra | $5,200,000 | $4,425,000 | -14.90% |
* Source: realestate.com.au suburb profiles 30 April 2024
Apartment price growth in Sydney’s eastern suburbs to March 2024
Suburb | Median House Price March 2023 | Median House Price March 2024 | Difference |
Bellevue Hill | $1,390,000 | $1,450,000 | 4.30% |
Bondi | $1,405,000 | $1,400,000 | -0.40% |
Bondi Junction | $1,250,000 | $1,210,000 | -3.20% |
Bronte | $1,570,000 | $1,595,000 | 1.60% |
Centennial Park | $750,000 | $909,000 | 21.20% |
Clovelly | $1,385,000 | $2,047,500 | 47.80% |
Coogee | $1,225,000 | $1,400,000 | 14.30% |
Double Bay | $1,900,000 | $1,857,000 | -2.20% |
Paddington | $825,000 | $893,000 | 8.20% |
Queens Park | $1,260,000 | $1,265,000 | 0.40% |
Randwick | $1,040,000 | $1,150,000 | 10.60% |
Rose Bay | $1,700,000 | $1,491,500 | -12.30% |
Vaucluse | $1,350,000 | $1,535,000 | 13.70% |
Woollahra | $1,500,000 | $1,350,000 | -10.00% |
* Source: realestate.com.au suburb profiles 30 April 2024
Lack of listings a key factor
There are several factors driving prices higher in the eastern suburbs property market in early 2024. However, Data from CoreLogic has revealed that Sydney’s eastern suburbs is the tightest-held region in the country, with just over 0.3% of dwellings listed for sale at any one time.
Clovelly, which recorded some of the most impressive growth of any suburb over the past 12 months (17% for houses and 47.8% for apartments) is also the most tightly held suburb in the east, with just 0.29% of properties listed for sale at any one time.
So there appears to be a direct correlation between lack of listings and higher prices.
Suburbs Playing Catch-Up
Another factor that is behind prices in some suburbs has been them effectively ‘catching up’ with their neighbours. Such as Rose Bay and Bellevue Hill luxury apartment market is providing an alternative living at more affordable prices than Double Bay.
At the top end of the Eastern Suburbs, harbourside mansions are setting new records. Wingadal in Point Piper is currently listed for sale, with expectations that its price will exceed $200 million, shattering the current national home price record of $140 million. The intense demand for these prestigious harbourside properties is pushing prices to unprecedented levels.
Unlike the rest of the country, interest rates and cost of living pressures have little impact on this segment of the market.
Your next property
If you’re looking to buy or sell property in Sydney’s Eastern Suburbs, please call me on 0412176074