The South-East Sydney property market has long been a sought-after area for homebuyers and investors alike. Despite broader market fluctuations in Sydney over the past few years, the South-East region has shown remarkable resilience. While many parts of Sydney experienced significant price reductions, the Eastern Suburbs, City, and Inner South recorded some of the lowest losses across Greater Sydney. RiskWise Property Research has conducted extensive analysis of the South-East Sydney market and found that despite the downturn in the broader Sydney market, this region has remained relatively stable. In fact, CoreLogic data suggests that areas like the Eastern Suburbs experienced only a modest decline of -2.4%, and the City and Inner South fared similarly with -2.6%.
For property investors and homebuyers seeking a stable yet growing market, South-East Sydney presents a compelling opportunity. The region offers a combination of strong population growth, well-established amenities, excellent transport links, and a scarcity of land for new developments. All these factors combine to create a strong foundation for long-term capital growth. This article will dive deeper into the factors that are driving growth in South-East Sydney, the investment potential of the area, and why it remains an attractive destination for those looking to secure long-term returns on their property investments.
At RiskWise Property Research, we are committed to providing investors with detailed market insights and data-driven advice. We specialize in tracking market trends and analyzing economic indicators that shape property markets, such as population growth, infrastructure development, and changing demographics. By keeping our finger on the pulse of the South-East Sydney market, we aim to help our clients make informed investment decisions that will ensure long-term success.
South-East Sydney’s Stability Amidst Broader Market Declines
Sydney, as a whole, has experienced significant fluctuations in property prices over the last decade. For instance, Sydney’s property market peaked in mid-2017 before undergoing a correction, with dwelling values dropping by an average of -5.4%. Despite the downturn, South-East Sydney stood out for its relatively modest price declines. The Eastern Suburbs and the Inner South have seen price reductions of just -2.4% and -2.6%, respectively. This is significantly lower than the broader Sydney market, highlighting the continued strength of the South-East property market.
Doron Peleg, CEO of RiskWise Property Research, commented, “While many have been discouraged by the current downturn, the situation is not as dire as it seems, especially in South-East Sydney. Despite the temporary market fluctuations, the region continues to attract both investors and homeowners. About 40% of properties are still being purchased by investors, many with a long-term view toward capital growth.”
This relatively stable performance can be attributed to several key factors that make South-East Sydney one of the most resilient property markets in the city. The region offers not only strong demand for housing but also has a limited supply of new land for development, which helps to keep prices steady. Additionally, the area remains a highly desirable location for families, professionals, and investors seeking proximity to the Sydney Central Business District (CBD), excellent schools, and high-quality amenities.
The Role of Population Growth in South-East Sydney
One of the major drivers of South-East Sydney’s long-term capital growth potential is the region’s significant population growth. The City Futures Research Centre projects that the residential population of South-East Sydney, which stood at 180,810 in 2011, will double by 2031. This increase will place additional pressure on housing demand, as the region will need an estimated 80,000 new dwellings to accommodate the rising population.
Population growth directly impacts property values, as increased demand for housing often leads to price increases. With more people moving into the region, particularly from interstate and overseas, the demand for both rental properties and homes for purchase will continue to rise. The South-East Sydney region has long been a popular choice for families and young professionals who want to live close to the city but also enjoy a more suburban lifestyle with proximity to parks, schools, and recreational amenities.
As the population continues to grow, investors and developers will likely focus on providing housing solutions for this expanding population. This includes the development of apartments, townhouses, and family homes. Furthermore, many of the new residents will need jobs, meaning more employment opportunities are likely to arise in the region as businesses expand to meet the demands of a larger population.
The Greater Sydney Commission’s Vision: A Three-City Plan
In addition to population growth, South-East Sydney will benefit from the Greater Sydney Commission’s Metropolis of Three Cities plan, which outlines a vision to reshape the city over the next 20 years. Sydney is projected to grow to a population of 8 million by 2056, which will require innovative planning solutions to address the challenges of congestion, unaffordable housing, and environmental sustainability.
The Eastern Harbour City, which includes South-East Sydney, is positioned to become the heart of Sydney’s economic and cultural transformation. Under the Three-City Plan, the Eastern Harbour City will see significant investments in infrastructure, business hubs, and innovation districts. There are plans to create an Innovation Corridor with health and education precincts, strategic business centers, and other knowledge-based sectors to boost innovation, creativity, and high-paying jobs in the area. This growing concentration of knowledge-intensive industries will create strong demand for housing and commercial space, particularly for property investors.
In addition, the plan aims to alleviate congestion by improving public transport and expanding connectivity between Sydney’s various districts. The Sydney Metro and other transportation initiatives will improve the accessibility of South-East Sydney, making it easier for residents to commute to work, school, or leisure destinations. This enhanced connectivity is expected to further boost the region’s appeal for investors, homebuyers, and renters.
The long-term vision for South-East Sydney as a hub for business, innovation, and culture ensures that the region will continue to grow and thrive for decades to come. These developments will enhance the value of properties in the region, making it an attractive investment destination for those seeking stable, long-term returns.
Housing Demand: Family Homes vs. Investor Apartments
While South-East Sydney is set to experience strong population growth, not all areas within the region will see the same level of demand for property. It is important to distinguish between different property types and areas within South-East Sydney. Some areas are better suited for family homes, while others cater to the growing demand for apartment living, particularly among young professionals and renters.
In areas such as Coogee, Randwick, Paddington, and Kensington, there is strong demand for houses that can accommodate growing families. These areas offer access to quality schools, parks, and family-friendly amenities, which makes them attractive to buyers seeking long-term stability. Additionally, these suburbs have limited opportunities for new development, meaning housing supply is relatively constrained, which will help to maintain upward pressure on prices.
On the other hand, areas like Zetland, Rosebery, Waterloo, and Eveleigh have seen significant levels of apartment construction in recent years. While these areas still attract buyers and renters, they have faced challenges due to oversupply, particularly in the apartment market. As a result, investors must be cautious when purchasing in areas where the market is flooded with new units, as price growth in these areas may be more subdued compared to locations where demand outstrips supply.
For investors looking for the best potential for long-term growth, it is essential to carefully analyze the specific dynamics of different suburbs and choose locations where demand for housing will remain strong and where supply will be limited.
The Impact of Infrastructure Development
In addition to population growth and urban planning, infrastructure development plays a crucial role in the long-term success of any property market. South-East Sydney has benefited from a series of infrastructure projects that have helped to enhance the area’s accessibility and overall liveability.
One of the most significant infrastructure projects currently underway is the Sydney Metro, which will connect the region to other key parts of the city, including the CBD, Northwest Sydney, and Western Sydney. The Metro is expected to improve the commute for thousands of workers and residents, making South-East Sydney an even more desirable place to live and invest.
The Eastern Suburbs Light Rail, which is already operational, further enhances public transport links, providing easy access to the CBD and key areas like Randwick, Kingsford, and Kensington. This enhanced connectivity allows residents to live in the Eastern suburbs and easily access work, entertainment, and leisure destinations across the city.
Additionally, the transformation of Green Square and surrounding areas has contributed to an influx of new developments, including parks, shops, and recreational facilities. This has made the area more attractive to both homeowners and investors. These infrastructure developments are expected to continue, further elevating the appeal of South-East Sydney and contributing to the long-term capital growth potential of the region.
RiskWise Property Research: Expert Analysis and Insights for Investors
At RiskWise Property Research, we specialize in providing in-depth market research and expert analysis to help investors navigate the complexities of the Sydney property market. Our team is committed to helping investors make data-driven decisions based on long-term trends, such as population growth, infrastructure development, and economic conditions. By understanding these factors, we can help clients identify the best investment opportunities in South-East Sydney and beyond.
We regularly track property price movements, rental yields, supply and demand trends, and other key indicators to provide up-to-date and reliable insights. Our team is always available to discuss market trends, answer questions, and guide investors through the process of selecting and managing their property investments.
Conclusion: South-East Sydney’s Long-Term Investment Potential
South-East Sydney remains one of the most resilient and promising areas for property investment in Greater Sydney. With population growth projections, strong demand
for housing, and significant infrastructure developments on the horizon, the region is poised for long-term capital growth. Despite recent market fluctuations, South-East Sydney offers excellent investment opportunities for those with a long-term perspective.
The combination of limited land supply, ongoing urban development, and proximity to key business and cultural hubs makes South-East Sydney an attractive destination for both residential and commercial property investments. For investors looking for stable, long-term returns, South-East Sydney should remain a top consideration.
At RiskWise Property Research, we are dedicated to providing investors with the tools and insights they need to succeed in the dynamic property market. If you are interested in exploring investment opportunities in South-East Sydney, we encourage you to reach out to our team for expert advice and guidance.