One Buyers Agency: 2023 End of Year Wrap-Up

As we near the end of the year and eagerly anticipate what 2024 has in store, it’s time to look back on the last 12 months in the Eastern Suburbs - the jewel in the crown of one of the most beautiful cities in the world.

2023 has defied all odds with ups and downs, a limited property supply, and record-breaking sales that have all shaped the real estate scene this year. But for us all at One Buyers Agency, it's been a year of nuanced shifts and surprising stability, especially in the Eastern Suburbs, where certain factors have defied broader market patterns.

Our commitment to fostering long-term relationships with some of the Eastern Suburbs premium real estate agents gives us the unique opportunity to present clients with truly exceptional properties, often long before they go to market. Combine this with access to premium on-demand services, means we’re able to make the process as quick and smooth as possible, with 70% of our total properties in 2023 being purchased off market within 24 to 48 hours in most instances.

Market Resilience in the East

One standout aspect of the year has been the resilience of the Eastern Suburbs. Unlike other regions susceptible to wider market trends, the Eastern Suburbs have held strong with locations like Bellevue Hill, Rose Bay, and Vaucluse showcasing remarkable stability, showing consistent demand from home and overseas investment and resulting in them holding value.

Interest Rates and Property Prices

Surprisingly, property prices in these areas weren't as affected by interest rate fluctuations as anticipated. Despite the cost of living crisis and that interest rates increased by 1.25% in 2023, the Eastern Suburbs maintained their allure. 

Pricing held strong and the area was largely unaffected by these external financial factors, with an increase in demand combined with a perpetual shortage in availability resulting in record-breaking sales. So much so, CoreLogic announced Sydney's median dwelling price surged by 10.6% since hitting its low point in January and houses in the Eastern Suburbs experienced a remarkable increase of 10.9%.

Supply Dynamics

Did we witness a surge in property supply this year? The answer, particularly in the Eastern Suburbs, leans more towards a controlled influx. While there has been a slight decrease in new listings due to sellers concerned with where they will then purchase, the market saw a balanced approach between homes coming online and those transitioning off-market, maintaining a level of equilibrium. 

Buyer behavior has been notably discerning and deliberate this year. Supply concerns have resulted in a shift towards quality over quantity, with purchasers showing a preference for well-maintained, unique properties that offer them long-term value. 

Overseas interest in these coveted suburbs has also increased throughout the year resulting in a heightened demand for homes that align with a lifestyle and investment aspiration that only the Eastern Suburbs can offer.

Predictions for 2024

Looking ahead to 2024, the real estate landscape is poised for continued evolution.  Domain analysts predict prices could climb a sizable 7-9% in Sydney next year and the resilience seen in the Eastern Suburbs is expected to persist. While interest rates may continue their upward trajectory, we’re confident these areas have demonstrated a certain immunity to the fluctuations in the past year. 

However, predictions of interest rate drops overseas and in the US have the potential to create a knock-on effect, along with the possibility of a slight increase in stock, and further interest from overseas, means the result could be intensified competition among buyers vying for these coveted properties.

Market Outlook

For the Eastern Suburbs, 2024 looks likely to maintain its huge appeal, with slight price adjustments possible in response to rising interest rates. From Watsons Bay to Botany, the demand for quality properties across the whole of the Eastern Suburbs is expected to remain robust, driving moderate growth in these sought-after locations.

As we say farewell to 2023, the real estate landscape in the Eastern Suburbs stands as a testament to stability and resilience. The allure of these areas persists, promising continued demand even in the face of a changing financial landscape. 



So, whether you're considering upsizing, downsizing, investing, or simply staying informed about the market, contact us to help you achieve your property dreams in 2024.