Sydney's coast rules in the next wave of prestige suburbs

If you’re looking for the next big thing in prestige property in Sydney, head to the coast.

The eastern beachside suburb of Bronte has come out as one of the strongest performers in the Domain Group House Report for June.

With a median house value of $3.49 million, it debuted in Sydney’s small and exclusive $3-million club. 

If you look at the next strata of 10 suburbs, which have a median house price of $2.5 million to $3 millon, you’ll find four of them are in beachside locations.

Those suburbs, just nudging the highest category, are ones to watch for those looking to identify the next wave of top prestige suburbs.

Among the top performers are Clovelly, with a median house price of $2.97 million, North Bondi with a median house price of $2.85 million, Coogee with a median house price of $2,782,000 and Manly with a median of $2.76 million.

Domain Group chief economist Dr Andrew Wilson said it was not surprising to see Bronte included in the top 10 suburbs for median house prices in Sydney. 

“Today everyone equates Bronte as the home of movie stars so it is not an unlikely candidate,” he said. Among  the suburb’s newest residents is Mentalist star Simon Baker, who bought in Bronte last year for $6.5 million.

McGrath agent Bethwyn Richards, who specialises in the eastern beaches market, said the suburb has been highly considered for a long time but said there has been a recent surge in prices.

“Any property that has come on the market recently has sold really quickly,” she said.

Meanwhile, she said, there had been a major change in Coogee and Clovelly over the past two years. In all suburbs the beachside lifestyle is the drawcard.

“People are making their decision based on the lifestyle they see is available here. They are young families who want to walk, run, surf and eat on the beach,” she said.

“It’s not about the life they lead nine to five but the life they would like to lead.”

A typical home in Clovelly for $2.97 million would not be an ocean frontage or even have  a beach view, but would be “in an elevated position”.

It is cashed-up young couples and professionals in the finance sector who are lining up to buy in North Bondi, says Raine & Horne agent Ric Serrao, who has been selling property in the neighbourhood for 25 years.

“When the banking sector is doing well and there are bonuses we notice that,” said Serrao.

He said a shortage of stock in recent times has also contributed to price rises.

When something does come on the market, it is quickly snapped up.

“I recently sold a three-bedroom semi in North Bondi with an ocean view after it being on the market for just one day,” he said.

He said that, while in the past buyers who were priced out of Bronte for houses turned to North Bondi and Bondi Beach, today they attracted their own market.

“With more lifestyle facilities like new restaurants and bars Bondi is now people’s first choice,” he said.

If you’re not in the market for Mosman, which sits above the $3 million mark, Manly is always an option with houses in the suburb hotly contested.

Kerry-Anne Nielsen, of Red Property, who has covered the Manly market for 20 years, said  there had already been huge interest in a Federation bungalow in the suburb which had a price guide of $3.3 million.

“It needs renovation and has been held as an investment property for 40 years but I have been inundated with calls since it listed on Monday,” she said.

The last time the property changed hands was in 1977, when it sold for $51,000. 

Millers Point has also made its mark, with a median house price of $2,587,500.

The suburb, bordered by the city centre and harbour, is undergoing a massive transformation as public housing is being sold off.

Terraces in the suburb have been sold for a million at auction, with a Lower Fort Street property selling for $6.1 million.