It’s a fact: In the 12 months to 31 December 2022, the citywide median value fell -12.1%, according to CoreLogic.
But not all property prices moved in unison, with certain suburbs and property types – including here in Sydney’s Eastern Suburbs – outperforming the market by a long way.
With that in mind, we reveal the suburbs we think will be the Eastern Suburbs’ best performers over the next 12 months and beyond.
While demand in some parts of the eastern suburbs move in and out of fashion, unassuming Randwick is one suburb that always stays in demand. And with a world-class university, two hospitals and close proximity to the beaches, park and Sydney’s light rail system, it’s not hard to see why.
Rents in Randwick also lifted close to 20% in the 12 months to December 2022 – once again proving its status as one of the best areas to invest in across the whole city. As the RBA’s interest rate rises slows, and confidence returns to the sales market, we also believe capital growth is likely to follow.
Median House value: $2,365,000
Growth in 2022: -0.2%
Yield: 2.1%
Median apartment value: $825,000
Growth in 2022: -2.4%
Yield: 3.2%
Alternative: Matraville
While its better-known neighbours get all the attention, Matraville has been the quieter achiever. While the median house price may have fallen -0.2% last year, it’s still 47.5% higher than it was three years ago. We believe, when the market turns, it’s in a prime position to grow further still.
Clovelly has been a suburb on the rise for some time, with property prices almost doubling between 2018 and early 2022. While this stellar growth may have been great for homeowners, it locked out many of those who’d been eyeing a family home in this community-minded suburb by the sea. But with the median house price falling -8.3% over the past 12 months and the median apartment value down -10.4%, the tables may have turned – making this beautiful and vibrant part of the east slightly more accessible, and boosting competition once again.
Median House value: $4,127,500
Growth in 2022: -8.3%
Yield: 2.2%
Median apartment value: $1,630,000
Growth in 2022: 3.7%
Yield: 2.8%
Alternative: Little Bay
While it may be further from the city, Little Bay Beach offers the same kind of family-friendly beach environment at a much more reasonable price. In fact, the median house value in this highly underrated part of the city is $2,525,000 and the median apartment value is $822,000, making it one of the most affordable beachside suburbs in Sydney’s east.
Bronte has been one of Sydney’s most in-demand suburbs over the past decade, very much establishing a reputation as one of the city’s most prestigious beachside locations. In the last two years alone, the median house value has risen 52.4% to stand at $5,462,500. But a flatter market means there should be better buying in this blue chip area for the next little while. So people who have been holding off buying into Bronte due to the high level of competition for quality homes, may find that this is their time.
Median House value: $5,462,500
Growth in 2022: -0.7%
Yield: 1.9%
Median apartment value: $1,515,000
Growth in 2022: 3.4%
Yield: 2.7%
Alternative: Tamarama
Nestled between Bronte and Bondi, Tamarama is Sydney’s most expensive beachside suburb. But with a median house price drop of -27.9% over 2022 (albeit off a small base), it may be within more people’s reach. But bear in mind there’s only 684 properties to choose from in this tiny beachside pocket according to Census data, so you may need to be patient, and willing to move seriously fast when something does come on the market.
4: Lifestyle hotspot: Coogee
If there’s one eastern suburb that has it all, it has to be Coogee. It’s vibrant and cosmopolitan, has fantastic eating and drinking places and great public transport links and, of course, boasts one of the very best beaches in the whole city. We think buyers looking to set themselves up for the long term could do a lot worse than buying into this beautiful part of the world – whether that’s for their own home or an investment.
Median House value: $3,680,000
Growth in 2022: -2.1%
Yield: 2.1%
Median apartment value: $1,325,000
Growth in 2022: -5.4%
Yield: 3.0%
Alternative: Bondi Beach
Sydney’s most famous beach has a lot to offer residents, with so much to do right on its doorstep. Interestingly Bondi’s median house ($3,760,000) and unit prices ($1,350,000) are almost identical to Coogee’s, and with the trend for a coveted beachside lifestyle showing no signs of abating, we think the suburb will overperform for the next few years.
Source: Director, Auctioneer Adrian Bo