The apartment market in Rose Bay has long attracted downsizers seeking lifestyle, convenience, and level access to village amenities. With its harbourside charm and boutique scale, the suburb continues to appeal to Baby Boomers looking to simplify their living arrangements without compromising on quality or location.
As a real estate professional with over 35 years of experience in Sydney’s Eastern Suburbs, I’ve witnessed this market through many cycles. Today, the suburb is facing market forces that are reshaping how—and why—people buy here.
Downsizers: The Market’s Foundation
The trend toward downsizing in Rose Bay began in the early 2000s, supported by a wave of boutique apartment developments tailored to mature buyers. One of the early examples was Spencer Street—a project that set the benchmark for layout, scale, and lifestyle features. Since then, the appetite for large, well-designed apartments has remained a consistent driver of demand.
Planning Reform and the Development Surge
This year, the NSW Government’s Low and Mid-Rise Housing Policy has radically altered the local development landscape. The new policy permits construction of up to six storeys within 800 metres of local centres and public transport—overriding many existing planning controls.
In response, developers are scrambling to secure suitable sites. Amalgamations are being negotiated at pace, and vendors are being presented with enticing offers. However, many of these are highly conditional—subject to planning approvals, feasibility studies, and future market performance.
For property owners, these deals can be complex and uncertain. Some are locking into long-term agreements that may never lead to development. Others are unaware of the potential risks hidden in the fine print.
A Shift in Buyer Sentiment
In my recent consultancy work, I’ve observed a clear change in the way buyers are approaching the market. Three themes are emerging:
1. Price Sensitivity Is Rising
Many new apartments are priced at or above the value of the average downsizer’s existing home—prompting a valid question: why move? Compounding this issue, unsold stock in several completed developments is taking months to shift, often trading at prices well below original off-the-plan levels.
2. Boutique Living vs Bulk Supply
The appeal of Rose Bay has always been its village character and boutique building scale. The introduction of bulkier, denser developments represents a marked departure—and one the market has yet to embrace. In my view, this shift could place downward pressure on prices, particularly for developments that ignore the lifestyle priorities of the downsizer demographic.
3. Infrastructure and Livability Pressures
Traffic congestion is a growing concern, especially during school drop-offs and peak hours. Without meaningful infrastructure upgrades—roads, parking, public transport—additional density risks eroding the lifestyle advantages that make Rose Bay so desirable.
Sales Snapshot: Apartments Over $5 Million in Rose Bay
In the past 12 months, 131 apartment sales were recorded in Rose Bay, totalling $397,415,000 in transaction volume. Notably, 25 sales exceeded $5 million, reflecting strong demand for premium finishes, desirable layouts, and prime positions.
Selected Resales – Spencer Street
3/18–20 Spencer Street
3 Bed | 2 Bath | 2 Parking | 360 sqm
Sold: $4,550,000 (2024) | Purchased: $935,000 (2000)
Capital Growth: $3,615,000 | Total Growth: 386.63% | Annual Growth: 6.82% p.a.
8/48 Spencer Street
3 Bed | 2 Bath | 1 Parking
Sold: $3,266,000 (2024) | Purchased: $1,450,000 (2011)
Capital Growth: $1,816,000 | Total Growth: 125.24% | Annual Growth: 6.45% p.a.
13/53–57 Spencer Street
3 Bed | 2 Bath | DLUG + Storage
Sold: $3,600,000 (2024) | Purchased: $990,000 (2001)
Capital Growth: $2,610,000 | Total Growth: 263.64% | Annual Growth: 5.77% p.a.
12/37–39 Spencer Street
3 Bed | 2 Bath | 2 Parking
Sold: $3,600,000 (2024) | Purchased: $1,095,000 (2002)
Capital Growth: $2,505,000 | Total Growth: 228.77% | Annual Growth: 5.56% p.a.
12/1 Spencer Street
3 Bed | 2 Bath | 2 Parking
Sold: $3,600,000 (2024) | Purchased: $4,000,000 (2023)
Capital Growth: –$400,000 | Total Growth: –10.00% | Annual Growth: –10.00% p.a.
10/44–46 Spencer Street
3 Bed | 2 Bath | 1 Parking
Sold: $3,400,000 (2024) | Purchased: $1,125,000 (2001)
Capital Growth: $2,275,000 | Total Growth: 202.22% | Annual Growth: 5.28% p.a.
Boutique Project Highlights
Atlas by Fortis – 5 Spencer Street
12 luxury residences | MHNDU design | Alexander & Co. interiors | Wolf/Sub-Zero appliances
Recent Sales:
Unit 1 – $6.3M (Apr 2025) – Garden apartment with entertainer’s terrace
Unit 7 – $6.7M (Apr 2025) – 3 Bed | 2.5 Bath | 228 sqm sub-penthouse
Unit 6 – $7.35M (Apr 2025) – North-facing 3-bedroom sub-penthouse
Unit 9 – $8.5M (Jul 2024) – Top-floor 3-bedroom penthouse
Unit 10 – $8.5M (Nov 2024) – 224 sqm designer penthouse
Unit 4 – $10M (Feb 2025) – 640 sqm house-like garden residence
Callista – 38–40 Newcastle Street
8 luxury 3-bedroom residences | Lawless & Meyerson interiors | Completed Oct 2024
Unit 2 – $5.15M (Dec 2024) – Garden-level apartment
Unit 5 – $6.388M (Apr 2025) – 552 sqm elevated garden apartment
Unit 8 – $7.1M (Nov 2024) – Penthouse-style residence
The Rochester – 30–32 Newcastle Street
Seniors Housing SEPP compliant | IPM Property Group | Miele appliances
Unit 202 – $6.5M (Mar 2025) – 3 Bed | 2 Bath | Covered terrace
Unit 101 – $6.25M (Oct 2024) – North-east facing apartment with entertainer’s balcony
The Stella – 58–60 Newcastle Street
Designed by Marchese Partners | Italian joinery | Herringbone oak floors
Unit 303 – $4.25M (Oct 2022) – North-facing 3-bedroom apartment
Unit 203 – $7.2M (Apr 2024) – 4-bedroom, 4-bathroom residence with 4-car garage
Let’s Talk Strategy
With over 35 years of real estate experience in Sydney’s Eastern Suburbs, I’ve helped clients navigate market shifts, seize opportunities, and protect long-term value. Whether you’re downsizing, investing, or simply curious about your next move, I offer independent, strategic property advice tailored to your goals—not a brand’s targets.
If you’re looking for genuine, experienced guidance in today’s market, let’s talk.
