Spring into Action: Sydney’s Eastern Suburbs Lead the Way in a Strong Recovery
The Sydney Eastern Suburbs property market has burst into the spring selling season with a newfound vigour, solidifying its status as a top-performing region in the city. Over the last four weeks, a potent mix of improved buyer confidence, tight supply, and a macroeconomic tailwind has pushed the market into a new growth phase. With home values returning to their peak levels and competition heating up, the area’s prestige, beachside, and inner-city enclaves are buzzing with activity.
A New Chapter for the Market
The current momentum can be traced back to the Reserve Bank of Australia’s decision to cut interest rates in February 2025, the first such move in over four years. This shift in monetary policy has had a profound effect, boosting buyer confidence and increasing borrowing power. As a result, many buyers who had been waiting on the sidelines are now actively re-engaging with the market.
This renewed demand is clashing with a persistent lack of available properties, a condition that has been a defining feature of the Sydney market since the pandemic. This fundamental imbalance between a growing pool of buyers and chronically low stock levels is the primary force driving the market’s strong performance.
Competition Heats Up: The Auction Market Roars Back
The most compelling real-time indicator of the market’s strength is its stellar performance at auction. Sydney’s city-wide auction clearance rate reached 74% in the first week of September . The Eastern Suburbs is a key driver of this success, recording the highest clearance rate in Sydney for the month of August at an impressive 78.0% . This figure is a critical barometer of market sentiment, confirming that the Eastern Suburbs is a definitive “seller’s market” where buyers are competing fiercely, often pushing sales prices at or above the reserve.
| Region | Aug-25 Clearance Rate |
| Sydney – Eastern Suburbs | 78.0% |
| Sydney – Sutherland | 75.9% |
| Sydney – Inner South West | 75.3% |
| Sydney – Inner West | 73.7% |
| Sydney – North Sydney and Hornsby | 73.7% |
| Sydney – Parramatta | 73.6% |
| Sydney – Northern Beaches | 73.4% |
| Sydney – City and Inner South | 72.0% |
The Trophy Market Awakes from its Slumber
For much of the past year, the ultra-premium end of the market has been uncharacteristically quiet. However, the last four weeks have seen a significant shift, with a wave of high-profile, generational properties hitting the market just in time for spring. This sudden influx of high-value listings signals a renewed confidence among high-net-worth vendors.
Notable new listings include a Vaucluse waterfront estate with a $60 million price guide and a Point Piper waterfront property guided at $35 million. The market is not just seeing new listings, but significant sales. A Bellevue Hill house designed by BKH Architects sold for around $24.5 million, and an unrenovated 1970s waterfront home in Watsons Bay sold for an eye-watering $28.4 million after just one week on the market . This activity indicates robust buyer interest and a strong appetite for premium homes, reversing the statistical declines seen in the median prices of some high-end suburbs.
Sales volumes in key Eastern Suburbs locations are also a strong indicator of market health. In the month of August, Bellevue Hill saw 28 sales from 47 new listings, while Elizabeth Bay recorded 27 sales from 37 listings. These figures demonstrate efficient turnover and intense buyer activity in these sought-after areas.
A Tale of Two Markets: Houses vs. Units
A defining trend in the Eastern Suburbs is the performance divergence between houses and units. While some prestige house markets have seen statistical declines, the unit market has consistently shown strong growth. This is largely a consequence of affordability. With the median Sydney house price now at $1.52 million, many buyers are priced out and are turning to units as a more accessible entry point .
The demand for units is further compounded by a dual dynamic: downsizers seeking luxurious, low-maintenance living and investors capitalising on high rental yields. Over the last 12 months, unit prices in Coogee rose by 10.1%, Double Bay by 10.6%, and Rose Bay by 5.0%.
| Suburb | Median House Price | 12-Month House Growth | Median Unit Price | 12-Month Unit Growth |
| Bellevue Hill | $9,240,000 | -7.6% | $1,450,000 | +4.1% |
| Coogee | $4,067,500 | +18.6% | $1,450,500 | +10.1% |
| Double Bay | $7,850,000 | +27.2% | $1,825,000 | +10.6% |
| Randwick | $3,500,000 | +9.8% | $1,185,000 | +7.7% |
| Rose Bay | $6,000,000 | +4.3% | $1,574,250 | +5.0% |
| Vaucluse | $7,952,500 | -14.5% | $1,540,000 | +3.0% |
The Road Ahead
The outlook for the remainder of 2025 is for a continuation of this positive trend. While affordability and lending settings will prevent a return to a “boom-time” acceleration, the fundamental imbalance between tight supply and strong demand is expected to maintain upward pressure on prices.
Government policy is also set to play a long-term role in addressing supply issues. The NSW Government’s Low and Mid-Rise Housing Policy, which came into effect in February 2025, aims to unlock new supply by allowing terraces, townhouses, and mid-rise apartment buildings near transport hubs . This is a crucial move toward creating a more diverse housing stock for a broader range of buyers, including downsizers and key workers .
The last four weeks have confirmed that the Eastern Suburbs market is in a robust new cycle. For sellers, this is an opportune time to list a property, with high competition and a strong seller’s market. For buyers, the unit market continues to offer a compelling entry point with strong growth potential, while a new wave of trophy homes provides opportunities in the premium segment.
