Mascot, Randwick Drive Price Growth in Sydney’s Eastern Suburbs

(credits to Kate Burke, domain.com.au/news)

 

House prices in Sydney’s eastern suburbs have reached a new high, with growth fuelled by demand for relatively affordable pockets that sent Mascot and Randwick prices jumping more than 14 per cent.

The median house price in the inner city and eastern suburbs reached a record $2.55 million, after climbing $120,000 in the September quarter, the recent Domain House Price Report shows. House prices in the region are now up 14.1 per cent year-on-year.

 

Mascot – home to Sydney’s international airport – recorded the strongest growth, with the median climbing 15 per cent, or $195,000, to $1,495,000 in the past year.

Randwick rose 14.5 per cent to $2.56 million over the year, compared with the year before.

It’s a stark contrast to some of the area’s pricey harbourside enclaves. The largest declines were in Rose Bay and Vaucluse where the medians dropped 6.3 per cent, to $3.75 million and $5,327,500, respectively.

A shortage of homes on the market is supporting prices in the region, but house hunters there were also less likely to be affected by the economic fallout of the coronavirus pandemic, Domain senior research analyst Nicola Powell said.

Younger and lower-income households had borne the brunt of the impacts, and those looking to buy a house in the region rarely fell into either category, Dr Powell said. Instead, they were likely to have been in the market for several years, and reaped the befits of previous price rises.

 

 

 

Mascot was among nine suburbs where house prices jumped more than 10 per cent, as were neighbouring Botany and nearby Kingsford.

Source: Domain House Price Report.
TOP SUBURBS FOR ANNUAL HOUSE PRICE GROWTH
Suburb Median YOY 5Y Growth
Mascot $1,495,000 15.0% 24.6%
Randwick $2,560,000 14.5% 31.3%
South Coogee $2,810,000 13.4% 30.7%
North Bondi $3,035,000 12.4% 36.0%
Coogee $2,870,000 11.7% 41.7%
Botany $1,425,000 11.5% 31.3%
Paddington $2,450,000 11.4% 45.6%
Woollahra $3,255,000 11.3% 37.8%
Kingsford $2,152,500 11.0% 24.2%
Surry Hills $1,817,500 9.5% 30.5%

 

 

While still expensive, Dr Powell said, these pockets offered more affordable options for the upsizers fuelling buyer demand – as record low interest rates had made it a good time for those with financial security to upgrade.

Gem Basol ,of NGFarah, has seen strong interest in Mascot and Kingsford from young families upsizing from units in the east.

“There is a lot of larger homes, on decent size land, and it’s more affordable to get a two or three bedroom house there,” he said.

Good homes were being snapped up quickly, he said, noting a Kingsford house – inspected by 10 groups – recently sold one day after going online.

 

Randwick, South Coogee, North Bondi, Coogee, Paddington and Woollahra were among the other suburbs which saw double digit price growth.

Ric Serrao, of Raine & Horne Double Bay, noted a three-bedroom semi in North Bondi which sold for $2,262,500 in lockdown, recently resold – with DA approval for a second storey – for $2.6 million. He added other local properties traded in lockdown, had also since resold for a six-figure gain.

“Since lockdown, I think we’ve had a 5 to 10 per cent increase [in prices across the eastern suburbs] … because there’s been such a shortage of stock,” he said. “Good property is doing extremely well, [but only] if it’s a property that ticks the majority of boxes.”

The biggest gain in dollar terms was in Bellevue Hill where the median jumped more than $500,000 over the year, or 9.1 per cent, to $6 million.

In total, only 19 suburbs had enough house sales over the year to calculate a median.

Michelle May, principal of Michelle May Buyers Agents, said the number of sales had more than halved in some suburbs since last year – when sales were already low due to the market downturn.

“Buyer demand is still vastly outstripping supply,” she said, adding she’d seen strong competition from upsizers, downsizers and even some investors of late, for houses in the east.

 

She felt suburbs such as Clovelly, Bronte and Coogee were still top of the list for many house hunters, but priced-out buyers were generally casting their gaze farther afield to get more bang for their buck, while others were simply seeking more space after months spent working from home.

“The houses that have that extra nook, extra study corner, or studio, those are the ones that are particularly very popular,” she said.

“With areas like Mascot and Beaconsfield … there are some beautiful Federation homes and beautiful pockets with larger block sizes, because people more at home … the property needs to works harder for them now,” she said. “And you’re getting more value in those suburbs.”

While the housing market saw strong growth, the region’s median unit price fell 5 per cent in the quarter to $950,000.

“There are almost two sides to the city and east, there’s the investor high-rise market vulnerability but then there’s the other side with real aspirational homes in lifestyle locations,” Dr Powell said.

Of 36 suburbs that recorded a unit median, 10 still recorded double digit price growth, with prices in Darlinghurst and Rose Bay jumping by more than 30 per cent.

However, Dr Powell said further weakness could lie ahead for the market, particularly in areas with lots of apartments and rising vacancy rates, when mortgage repayments holidays and JobSeeker and JobKeeper come to an end. She said strong annual growth in some pockets was also off the back of steep falls during the previous market downturn.

 

 

(photo/data credits to domain.com.au/news)