The recent Sydney property boom is set to fade away in 2016 rather than burn out. Most analysts believe that Sydney’s three-year price boom will most-likely slowly decelerate rather than abruptly crashing. The Eastern Suburbs are among Sydney’s stalwart suburbs being close to the city and close to the beach. There’s always going to be a high demand for this incredible lifestyle and as the old adage goes, there’s never a ‘perfect’ time in real estate so if you’re looking to move or invest, don’t put your lifestyle on hold and be alarmed with all the mixed messages.
There are a lot of people saying a lot of different things and after a crazy end to the market in 2015, it’s worth doing your research but don’t be put off by uncertainty because in the end, nothing’s certain in the marketplace. As the market kicks off in 2016, we’ve put together a collection of information to help you negotiate the Eastern Suburbs market.
Median House Price
In 2016, the median house price is expected to rise by 7%. This is in contrast to 2015 where it rose by 17% (BIS Shrapnel).
In the Eastern Suburbs, buyers can expect relief from recent price inflations. 2015 saw average prices rise a whopping 32.3% in Rose bay, 28.9% in Darling Point and 26.6% in Rushcutters Bay (Core Logic RP Data). Thankfully, this is expected to slow.
In the mid market, properties priced between $1 million and $3 million will see continued strong demand. Buyers should expect this price range to open up apartments in most areas of the eastern suburbs. Surry Hills, Paddington and Queens Park which also saw strong growth in 2015 should see continued confidence with interest rates remaining at historic lows.
While consumer confidence at home is traditionally fueled by low interest rates, the low Australian dollar will spur increased foreign interest in coastal properties, particularly in the vicinity of Bondi Beach due to limited supply.
One other suburb to keep an eye on is Woolloomooloo as compared to the rest of the East, it has underperformed for years. It’s a changing suburb which offers value for buyers in a convenient suburb.