Word On The Street | January Market Update

Eastern Suburbs & Inner East Property Market: 2024 Review and What’s Ahead in 2025

Along with the kick off of the Sydney Festival, “the 2025 Property Market feels equally fresh and positive”, says Renee Cross, Lead Agent at Ray White, Elizabeth Bay. Our team at Ray White The Woollahra Group have launched 23 new properties to market across all price points.

Renee reflected that the market is showing strong early indicators. “For each of the properties we have launched in 2025 we are seeing high levels of online enquiries, this is flowing through to strong foot traffic at our open homes, interestingly we are seeing this across all price points, from studios through to waterfront apartments and larger homes.”

Buyer Sentiment and Interest rates

On the front line we are seeing positive buyer sentiment. At our 44 open homes last weekend we had an average of 11 groups at each open home. With the ABC reporting that the financial markets are predicting a 95% chance of a February 2025 rate cut, confidence is growing in the property market. Additionally, AMP Chief Economist – Shane Oliver believes, “It’s going to be very hard for the RBA to avoid cutting interest rates in February.”

Given the heavy weights are backing it, we will be all eyes on the clock at 2:30pm on the 17th February 2025, for the Reserve Bank of Australia’s much anticipated decision.

Auction Clearance Rates

In December 2024, the Sydney market reflected a softening trend, with a clearance rate of 55% (as reported by Domain). However, the team at Ray White The Woollahra Group outperformed the market, achieving an auction clearance rate of 78% for the same period.

Our final exchange for the year took place on December 23rd, when Renee Cross’s team held a private inspection for a buyer that same day, securing a successful result just before Christmas.

Momentum continued into the new year, with our first two auctions in mid-January, led by listing agent Shannon Cleary, demonstrating that buyers are back in force. A standout result was 8/241-243 Darlinghurst Road, Darlinghurst—a sophisticated two-bedroom, one-bathroom light-filled Art Deco apartment that attracted strong interest from both investors and owner-occupiers.

Between the property’s launch in late December and auction in mid-January, Shannon hosted 190 inspections, issued 30 contracts, and registered eight bidders on auction night. The property ultimately sold to a first-home buyer for $1,417,000, achieving a building record. Our vendor, an expat based in the USA, was absolutely delighted with the outcome.

A Market picking up Momentum

With the longest school holidays on record now coming to an end………and February now here, buyers can expect to see increased options coming to market. Interestingly a growing proportion of buyers are unaffected by interest rates altogether. Data shows that over 25% of buyers nationwide purchase properties without a mortgage.

In Sydney’s Eastern Suburbs, this trend is even more pronounced, with up to 60% of transactions completed by cash buyers. This has helped the local market remain resilient despite higher interest rates in recent years.

This may be an excellent market to trade up in and for those families looking for a spacious family home we have had 4 showcase properties hit the market that may fit the brief.

8 Porter Street, Bondi Junction

This timeless Federation home with northern aspect over the back garden and pool includes all the old world charm. From marble fireplaces and hardwood floors to wide hallways, it offers a perfect blend of classic elegance and modern living. Just a stone’s throw to the beaches, this five-bedroom home is a rare find.

20 Campbell Avenue, Paddington

Just what the contemporary family or couple looks for in a Paddington terrace. Meticulous high-end materials feature throughout the brilliant design, providing ample space across multiple lounge and dining areas. Thoughtfully designed indoor and outdoor living spaces create a seamless flow throughout.

32 Duncan Street, Maroubra

This stunning four-bedroom semi is located just streets away from Maroubra Beach. The interiors feature bespoke joinery, creating a relaxed and inviting atmosphere. However, it’s the outdoor living that truly brings this home to life—with a resort-style pool and cabana, the garden was awarded Sydney’s Best Residential Project for its size in 2024.

22A Roslyndale Avenue, Woollahra

Designed by architect Garth Barnett, this elegant residence features soaring ceilings, Italian joinery, and seamless indoor-outdoor living with a sunlit alfresco area and mosaic-tiled pool. With a gourmet Miele kitchen, four spacious bedrooms, and a prime location near Double Bay and Woollahra Village, it offers the ultimate in luxury and convenience.

So, what next? Federal Election

With a federal election in 2025, housing affordability, and the cost of living pressures will be issues central to the debate. We expect to see further initiatives and incentives to help assist those looking to get onto the property ladder. One key initiative coming into effect is the Help to Buy Scheme, passed into law in late 2024. This allows eligible buyers to co-purchase a home with the government holding up to a 30% stake (40% for new builds). Sydney’s price cap under this scheme is $950,000, making it particularly relevant for the apartment market in the Eastern Suburbs. Find out more about the First Home Buyers Guarantee and more to come in this space.

We expect the knock on effect for this will be increased demand for properties within this price range once the scheme rolls out.

Trends on the Property Investor Front

The new year started at an immense pace for tenants looking for a new home. In January alone our team leased 61 properties. The high volumes of tenant enquiry and activity, counterbalancing the somewhat sluggish signs at the end of 2024. From October onwards our Head of Property Management George Lambrou (who has worked in the area for over 25 years) noted a sharp increase in the number of properties that vacated over the Nov – Dec 24 period ( A-typical for that time of year) accompanied by lower than is seasonally expected tenant enquiries.

‘Our team worked very closely with our Landlords over pricing and marketing strategies throughout the lead up to Christmas. This foresight placed these properties and our Landlords well for an exceptional January – as seen in the strength of our leasing results.’

With the Australian labour market remaining strong (4.0% unemployment rate) and immigration continuing steadily, along with the Australian housing shortage. Investors are well placed with blue chip assets in Sydney’s East.

For investors or owner occupiers, two of our favourites to hit the market are 1/35-37 Elizabeth Bay Road, Elizabeth Bay, this fully renovated Deco apartment, with east facing balcony (internal laundry and dishwasher) is the perfect first home for a couple or savvy investor.

Then to the luxury of having your very own beach front at 4/22 Stafford Street, Double Bay this well appointed 3 bedroom apartment with lush green lawn is a short walk from the vibrant Double Bay Village. Brought to market by Mitch Dansey, our lead Auctioneer and Agent.

Final Thoughts

The Sydney property market is poised for an exciting year ahead, with shifting conditions bringing both opportunities and challenges. In the Eastern Suburbs, demand remains strong—particularly for premium homes in sought-after locations—and we anticipate this resilience to extend well into 2025.

With potential interest rate cuts on the horizon, we may see more buyers re-enter the market, while an increase in listings will provide greater choice and negotiating power. For sellers, well-presented homes in desirable areas will continue to attract strong competition, especially from cash buyers who remain a driving force in our local market.

These positive market trends reflect broader economic influences, including easing inflation, anticipated rate reductions, new government incentives for first-home buyers and investors, and the growing role of intergenerational wealth transfer, supported by cash buyers and the ‘Bank of Mum and Dad.’

Navigating these changes requires strategic planning and informed decision-making. If you’re considering buying or selling in 2025, now is the perfect time to prepare. Get in touch—we’d love to help you make the right move!