A New Year’s Perspective on the Eastern Suburbs Property Market

hotspotting.com.au and propertyU

As the year begins, many buyers are asking the same question—what is really happening in the Eastern Suburbs property market, beyond the headlines?

After working closely with buyers throughout the past year, one thing remains clear. This is still one of Australia’s most resilient and tightly held markets, but success increasingly comes down to financial and emotional preparation, perspective, and understanding local nuance.

A Market Built on Scarcity, Not Speculation

The past year reinforced that the Eastern Suburbs is not driven by volume or speculation. It’s defined by scarcity, lifestyle and long-term demand. Supply remained consistently low, and when well located, well-presented homes were priced realistically, competition followed, even during quieter periods.

A clear divide has widened between A-grade and B-grade properties. Buyers are far more selective than in previous cycles. Compromised homes and poorly presented or unrealistic pricing expectations meant these properties remained on the market for longer periods or just did not sell, while quality properties priced to sell continued to attract strong interest. Understanding this gap has become critical for buyers navigating the market.

We also saw renewed confidence from investors, first homebuyers, upsizers, and lifestyle-driven buyers, particularly those prioritising proximity to beaches, schools, transport, and village centers. Greater interest rate stability through 2025 helped many move forward with more clarity, even as later discussions around potential rate increases reintroduced caution.

Apartments and medium-density homes have also seen solid demand, particularly from first home buyers, downsizers and investors focused on location over size. First home buyers have been especially active in the $1m–$1.5m range creating strong competition.

At the prestige end, conditions were more nuanced. Longer selling campaigns and softer pricing in some pockets created opportunities for informed buyers, highlighting the importance of understanding micro-markets rather than relying on suburb-wide averages and median prices.

What Will Matter Most for Buyers in the Year Ahead

Looking ahead, the year is likely to reward buyers who are strategic rather than reactive. While more sellers may test the market, supply is unlikely to surge, and quality homes in tightly held locations will remain competitive.

For buyers, clarity, preparation, and long-term thinking matter more than ever. Being clear on priorities, ready to act, and focused on securing the right asset in the right location will continue to outperform trying to time the market perfectly.

From where I stand, the outlook for the Eastern Suburbs remains quietly positive, not because of hype, but because the fundamentals underpinning this market are still firmly in place.

Wishing everyone a thoughtful and successful year ahead.

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