Sydney’s most popular beaches: where property prices are soaring amid downturn

Families are shunning some of Sydney’s traditionally popular beaches in favour of new areas, driving a boom in home prices at a time when the rest of the market is falling.

Forget Bondi, Bronte or Cronulla – Sydney home seekers are turning to lesser known beach suburbs in the hopes of snagging a lifestyle home.

A PropTrack study has revealed the beach suburbs becoming more popular with home seekers – and most are cheaper alternatives to the city’s traditional favourites.

The increased demand for homes in these suburbs has been pushing up prices by about 9-49 per cent at a time when most of the market has been going backwards, with nearly three quarters of suburbs recording a decline in prices last year.

Beach suburbs becoming more popular included North Manly, where the average cost of houses is about $1.1m cheaper than in Manly, and Malabar, where house costs are about $860,000 cheaper than in nearby Coogee.

Other suburbs with an uptick in demand were less frequented pockets that local agents admitted were not traditionally on people’s radar such as Little Bay, Oyster Bay and The Entrance North.

Little Bay houses were roughly $966,000 cheaper than in nearby Coogee.

Sandringham, a Botany Bay beach on the southern edge of the St George region, had the biggest increase in buyer demand among suburbs south of the airport.

Coogee, traditionally less popular than Bondi, had a much larger increase in buyer demand.

Inquiries for houses in Coogee increased 36.7 per cent over the past year, compared to the 14.9 per cent increase in its northern neighbour.

Apartment buyers tended to favour Sydney’s most historically popular suburbs like Manly and Tamarama, but the trend for buying in more affordable pockets also increased.

Units in Warriewood, home to Warriewood and Turimetta beaches and a cheaper alternative to nearby Narrabeen and Collaroy, had a 21.6 per cent jump in buyer inquires over the past year.

Brighton-Le-Sands and Ramsgate Beach – which remain some of Sydney’s cheapest beach suburbs to buy an apartment – had a 6-15 per cent increase in buyer inquires.

PropTrack economist Angus Moore said demand for homes in beach suburbs has been elevated since the start of the Covid pandemic, but has been winding back in recent months.

He noted this could be due to affordability barriers for new market entrants and rising interest rates.

Home buyers’ shrinking budgets were part of the reason many were looking for homes further out than they would normally consider, Mr Moore said.

Alex Clyde, with kids Isabella, Leonardo, Marlow and puppy Enzo, are trying to buy in Mosman, where demand is rising. Picture: Tim Hunter.

A common thread among cheaper beach suburbs was a greater supply of housing, Mr Moore added.

“Some areas have more land available and it obviously makes it easier to add new houses,” he said. “That increased supply helps keep the homes more affordable.”

Ryan Middlebrook is selling a property in Manly Vale, a popular and cheaper alternative to Manly, and hopes to upsize to a larger house in the area.

He said living in the suburb allowed for many of the perks of being in a beach hub like Manly, without the lofty price tag.

“We’ve got great neighbours and it’s a great area,” Mr Middlebrook said. “It’s been great to be able to talk a quick walk to the local shops and is a five-minute drive to Manly beach.”

Ryan and Kate Middlebrook, with kids Mila and Hallie, said Manly Vale was a great area. Picture: David Swift

Their property at 99a Campbell Pde is being sold via McGrath agent Tim Cullen, who told The Daily Telegraph that the updated family home would be popular.

“We’re expecting good demand for this property,” he said. “Manly Vale is a much more affordable area when compared to the properties that you’d see in Manly.”

Alex Clyde lives in Mosman, a beach suburb that’s also been getting more popular despite being one of the most expensive suburbs in the country, and said the lifestyle was worth the cost.

Her family is selling up their property and are hoping to be closer to Balmoral Beach. “Nothing is better than a beachside house,” she said.

Originally published as Sydney’s most popular beaches: where property prices are soaring amid downturn