Local News

Market Wrap 2022

By December 21, 2022 No Comments

During 2022 Sydney’s city-wide median property price fell -10.9% between the start of the year and 30 November, according to CoreLogic.

However, in our area, the Eastern Beaches have held up well, with some suburbs and property types even posting gains.

Rising interest rates and economic uncertainty defining factors

Easily the main influence on Sydney’s property market this year has been rising interest rates. In its fight against high inflation, the RBA has opted to lift the official cash rate for every one of the past eight months. In doing so, it has taken it from a historic low of 0.1% up to 3.1%.

This has had a major impact on many people’s budgeting and borrowing power. When people have less to spend, this will naturally impact property prices, especially in those segments that tend to rely on large home loans to finance their purchases – most notably first-home buyers and upsizers.

However, interest rates aren’t the only factor affecting the Sydney property market. City-wide, property prices were flattening and showing signs of beginning to fall several months before the RBA began lifting rates in May, revealing that the boom had ended.

Eastern Beaches hold up well

Here in the Eastern Beaches, we have generally not been as impacted by the current market conditions as many other parts of the city. There is still a lot of buyer activity, and auction clearance rates have remained relatively healthy.

The Wentworth Courier recorded a local auction clearance rate of 63% in the Eastern Suburbs as of 7 December, and CoreLogic had it at a preliminary 59% on 11 December. Anything between 60% and 70% is usually a sign of a balanced market.

As a result, prices have generally remained relatively stable over the past 12 months, although some suburbs – including Coogee and South Coogee – posted small gains, while others posted minor losses.

The standout performer has been Bronte, where the median dwelling value rose 8.8% over the past 12 months.

House prices in key suburbs over past two years

Suburb Value 30 Nov 2022 Value 30 Dec 2021 Difference Value 30 Nov 2020 Difference
Coogee $3,680,000 $3,653,000 0.7% $2,900,000 26.9%
South Coogee $4,015,000 $4,000,000 0.4% $2,622,500 53.1%
Clovelly $4,300,000 $4,460,000 -3.6% $3,700,000 16.2%
Bronte $5,875,000 $5,400,000 8.8% $3,535,000 66.2%
Randwick $3,250,000 $3,350,000 -3.0% $2,675,000 25.2%
Maroubra $2,690,000 $2,800,000 -3.9% $2,185,000 23.1%

* Source: Realestate.com.au Suburb Profiles accessed 9 Dec 2022

Apartment prices in key suburbs over past two years

Suburb Value 30 Nov 2022 Value 31 Dec 2021 Difference Value 31 Dec 2020 Difference
Coogee $1,335,000 $1,412,500 -5.5% $1,180,000 13.1%
Clovelly $1,620,000 $1,820,000 -11.0% $1,400,000 15.7%
Bronte $1,485,000 $1,452,000 2.2% $1,250,000 18.8%
Randwick $1,090,000 $1,158,000 -5.9% $990,000 10.1%
Maroubra $998,000 $950,000 5.1% $885,000 12.8%

* Source: Realestate.com.au Suburb Profiles accessed 9 Dec 2022

Impressive two-year gains across the Eastern Beaches

Bronte’s strong performance caps off a couple of stellar years for its property market. House prices in the beachside suburb have risen 66.2% since November 2020, while apartment prices have risen 18.8%.

However, since the pandemic struck in 2020, all our local parkside and beachside suburbs have done exceptionally well.

A key reason for this is that COVID-19 forced many people to rethink how they wanted to live. A lot decided a life by the beach was important to them, and given our area combines the beachside lifestyle with proximity to the city, as well as great schools and amenities, property around here has been in high demand.

Another factor has been that our area contains a disproportionate amount of prestige property, and this market segment has been less impacted by interest rate rises.

We’re still seeing the same strength at the top of the property market that was present in 2021. Several street and suburb records were set across the Eastern Beaches this year, even as prices tumbled elsewhere.

What to expect in 2023

We expect the strength at the top of the market to persist into 2023, as short supply means there aren’t enough listings to satisfy demand.

While other market segments may be subdued right now, we’re cautiously optimistic this will change. CoreLogic is reporting that the rate of decline has already slowed, and the market appears to be stabilising. When interest rates stop rising, we expect buyers to become more confident and to re-enter the market.

While we may not see the spectacular growth of 2021, we also don’t anticipate seeing the same losses in next year’s property market that Sydney experienced in 2022.

For buyers and sellers, our advice is always to make a move at a time that suits you rather than waiting for the market to turn.

A more even-paced property market like today’s is often the best time to transact because you have more time to make a choice and more chances of getting it right. Besides, if you’re thinking of selling, there is still strong demand for quality property here on the eastern beaches. So long as you have the right agent and realistic expectations, you’re likely to achieve a good price.

Want more?

If you’d like to know more about the current market or receive a free appraisal of your home, please feel free to get in touch.

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