Eastern Suburbs Property Market: 2025 Year in Review
Sydney’s Eastern Suburbs one of Australia’s most tightly held, prestige driven and lifestyle centric regions has delivered another strong and resilient year in property performance. Despite broader economic fluctuations, mixed consumer sentiment, and shifting borrowing conditions, the east has once again demonstrated why it remains one of the country’s most desirable and competitive real estate markets. From Darlinghurst to Double Bay, Bondi to Queens Park, the 2025 calendar year has showcased steady demand, renewed confidence, and standout results across both the house and apartment sectors.
Stability Returns After Two Years of Uncertainty
Following a period of volatility between 2022 and 2024 where interest rate rises, construction cost blowouts and buyer hesitancy created market friction 2025 marked the beginning of a stabilising phase. The RBA’s rate cuts in February, May and August helped restore borrowing power and buyer confidence, particularly among upgraders and prestige purchasers. As sentiment improved, the Eastern Suburbs saw increased auction clearance rates, stronger private treaty negotiations, and more consistent listing volumes.
Throughout the year, houses continued to outperform apartments, though both sectors recorded value increases. Prestigious pockets such as Bellevue Hill, Vaucluse, Double Bay and Paddington benefited from high net worth buyer activity, while more accessible suburbs like Bondi Beach, Randwick, Rose Bay and Kingsford saw heightened interest from families and professional couples.
Low Stock Levels Kept Upwards Pressure on Prices
One of the defining features of the Eastern Suburbs market in 2025 was the persistent shortage of quality stock. While listing volumes improved marginally compared with the previous year, demand still far exceeded supply in most areas. This imbalance created competitive conditions, particularly for freestanding homes in school catchment zones and lifestyle locations.
Several suburbs recorded strong price resilience due to the "hold-tight" behaviour of long term owners, many choosing to upgrade within the east rather than relocate elsewhere. As a result, renovated family homes in suburbs like Queens Park, Bronte, Woollahra and Randwick attracted significant attention, often commanding premium results at auction.
Apartments, especially those freshly renovated or near beaches and transport also performed well. Bondi, Coogee, Edgecliff and Potts Point remained hotspots for downsizers, investors and first home buyers seeking lifestyle driven locations with long term growth appeal.
Rental Market Tightens Further
The Eastern Suburbs rental market experienced extraordinary pressure throughout 2025, with vacancy rates hovering near historic lows. The return of international students, strong tourism activity, and limited new apartment supply all contributed to upward pressure on rents.
Premium leases in coastal suburbs saw some of the steepest increases, with Bondi, Tamarama and Bronte achieving significant year on year growth. High quality, well maintained apartments leased quickly, often after the first inspection, highlighting the continuing supply shortage in the rental sector.
Landlords benefited from rising yields, yet the competition among tenants reflected the broader affordability challenge across Sydney.
Prestige Market Strengthens
Sydney’s prestige sector traditionally one of the most stable in the country remained exceptionally resilient. In suburbs such as Darling Point, Point Piper, Vaucluse and Bellevue Hill, demand from high-net-worth buyers, expats and international investors returned strongly.
Luxury homes with harbour views, architectural designs or rare parcel sizes remained in high demand. Off-market transactions accounted for a notable portion of prestige activity, reflecting the discreet nature of this segment.
The $10m+ category saw increased liquidity compared with the prior two years, signalling growing confidence among wealthy buyers who re-entered the market as interest rate pressures eased.
What to Expect in 2026
Heading into 2026, the Eastern Suburbs market is well positioned for a steady continuation of this year’s momentum. Buyer confidence is increasing, interest rates appear to have stabilised, and the prestige sector remains one of the strongest in the country.
However, affordability challenges, low stock levels, and strong rental demand will continue to influence market conditions. For many buyers, especially families and first home seekers, competition will remain a hurdle in the most tightly held pockets.
Despite these challenges, long term fundamentals beachside lifestyle, elite schools, fast CBD access, premium amenities and scarcity of land mean the Eastern Suburbs will continue to outperform most Sydney regions.
On a personal note, this year I purchased for clients across 7 suburbs in the East.
· 58% off market
· 8% pre market
· 25% pre auction
· 8% at auction
· 720 property inspections
· 100% success rate