The Eastern Suburbs property market has been very different this year than last. Last year was all about declining demand and price falls. This year is all about recovery.
According to CoreLogic, Sydney’s median home value rose 5.3% between 1 February and 31 May 2023. Property market growth seems to have increased even though interest rates have increased since April 2012. In May 2023, prices rose 1.8%.
House prices almost doubled the growth of apartment prices during the boom of 2020-2021, which was startling. In the past quarter, median apartment values increased by 3.3%, compared to 5% for houses, as the market gains momentum.
Auction clearance rates have averaged 75% in the Eastern Suburbs over the first half of the year, with an increase in buyers’ activities at open houses and auctions.
Top performers over the past 12 months
In reviewing these figures, remember that, despite the increase this year, the citywide median is well below what it was 12 months ago. Based on CoreLogic data, Sydney’s average property value fell by -8.2% between May 2022 and May 2023, and prices remain -9.6% below their January 2022 peak.
| Suburb | Property type | Median value | Growth (past 12 months) |
| Bondi | House | $3,512,500 | -15% |
| Bondi | Apartment | $1,100,000 | -0.05% |
| Bondi junction | House | $2,500,000 | |
| Bondi junction | Apartment | $1,200,000 | -18.00% |
| Bellevue Hill | House | $8,047,500 | 0.60% |
| Bellevue Hill | Apartment | $1,367,500 | -8.80% |
| Bronte | House | $5.450,000 | 3.10% |
| Dover Heights | House | $5,872,500 | -6.80% |
| Double Bay | House | $5,600,000 | -8.20% |
| Double Bay | Apartment 3 brm | $3,300,000 | -5.70% |
| Coogee | House | $5.711,000 | 20.00% |
| Coogee | Apartment | $2.658,000 | 16.20% |
| Kensington | House | $4.100,000 | 38.50% |
| Potts Point | Apartment | $4.600,000 | 15.00% |
| Rose Bay | House | $5,687,500 | 1.10% |
| Rose Bay | Apartment | $1,567,500 | 1.10% |
| Woollahra | House | $5.390,000 | 12.30% |
There are several factors underpinning the local property market’s turn.
The effects of interest rate rise
Although the RBA has raised interest rates faster than ever, it isn’t affecting everyone. Many buyers downsize from prestige homes that don’t require financing. PEXA says one-quarter of property sales last year were to cash buyers.
Lack of stock
SQM Research says property listings in the Eastern Suburbs are 25% lower than last year.Increased migration
The increase in migration since the pandemic, with 700,000 expected to arrive before 2024.
The rest of 2023
Markets are sensitive to negative sentiment. However, I don’t see any major changes in the eastern suburbs, as the market here operates differently.
According to the Australian Bureau of Statistics, the preliminary estimate of the total value of residential dwellings in Australia in March 2023 was $9,874.7 billion. This was up $140.0 billion from $9,734.7 billion in December 2022.
Are you considering your next property move and finding it overwhelming and confusing with all the mixed information out there? I understand your concerns. The stakes are high when it comes to buying and selling. I’m here to ease your concerns and assist you in finding the right property. I’ll negotiate the most favourable terms and align it with the sale of your home.
Let’s meet over coffee to discuss the way forward.
