Bondi, Randwick, Bronte, Bondi Junction, Redfern, Woollahra, Bellevue Hill; The eastern suburbs of Sydney have enduring appeal and convenient proximity to beaches, parks and the city. But is now the right time to be buying in these desirable neighbourhoods? Let’s take a quick look at the state of the market in houses, apartments and rental properties in Sydney’s eastern suburbs.
Which areas are seeing growth – and which aren’t?
Domain has reported that certain areas of Sydney haven’t just held steady over 2020, but have actually seen robust price rises. According to the latest Domain House Price Report, Sydney’s city and east saw a 14.1% year on year change to the September 2020 quarter. Alexandria reported a massive 27.7% year on year change as of September 2020, for example, while Rose Bay saw a 31.8% YoY rise. Where areas may potentially weaken in 2021 is areas with lots of off-the-plan apartments on offer close to universities, due to the reduced number of international students.
Units have also seen relatively stable growth in Sydney’s city and east compared to other areas, with a 1.6% YoY change. Meanwhile the west and north west saw YoY drops, with -2.7% and -1.6% respectively.
When we look at rental properties, the city and east reported a YoY reduction of -10.9% in rents to September 2020 – actually one of the bigger drops in Sydney. So while property prices have remained steady, investment properties are seeing higher competition.
So what does all this mean? What should you do if you’re thinking of buying in the eastern suburbs?
It really depends on your circumstances. There are now more competitively priced rental properties available with fantastic amenities such as gardens and penthouse views. There’s also a good chance that properties for sale that have already seen strong growth in the last year could continue to hold and grow their value over time. So whether renting or buying, you could potentially find yourself a great deal over the long term.
What about the Sydney property market in general?
The general property market is looking fairly stable for the beginning of 2021. Interest rates are low, there are government tax cuts and incentives to consider and there’s talk about the Federal Government cutting some of the red tape around lending. Consumer confidence is high, and there are long waiting lists for new home builds.
It could be a great time for first home buyers and families to either join or take a rung up on the property ladder. And if you’re an investor, you might consider using a property manager to attract and retain quality tenants and carry out property checks to keep your property occupied.
Wills Property has some of the most experienced real estate agents in Sydney, and we’re always happy to provide personalised property recommendations to help you find your next place. Drop into our Bondi Junction real estate office today or give us a call to get started.