South Coogee homeowners have seen their property values increase by an impressive $560,559 over the past year, as the modest eastern beachside suburb leads the nation in price growth.
This significant rise, representing a 14.6 per cent gain, stands in stark contrast to some of Australia’s most prestigious suburbs, such as Melbourne’s Toorak and Sydney’s Vaucluse, which have experienced substantial declines in their median house prices. Toorak’s median price dropped by 26.7 per cent, while Vaucluse saw a 17.2 per cent decrease.
The Appeal of South Coogee
Photo Credit: Domain
Real estate agents point to several factors contributing to South Coogee’s surging popularity. Many buyers, previously priced out of more expensive neighbouring areas like Bondi, Bronte, and Clovelly, are finding greater value in South Coogee. The suburb offers a slightly more affordable entry point into the desirable eastern beaches lifestyle.
Zach Carter of PPD Real Estate noted that the limited supply of houses in South Coogee, due to its smaller size, has created high demand and competition among buyers. This scarcity, combined with a growing preference for a relaxed, family-friendly beach lifestyle over the more “body-beautiful” brand of Bondi, has fuelled the price growth.
The median house price in South Coogee has now reached $4.4 million, according to a recent national property price report, surpassing Coogee’s $4.325 million, though still slightly below North Bondi’s median.
Community and Lifestyle Enhancements
Photo Credit: Domain
The growing appeal of Coogee and its surrounds is also linked to significant community developments. The presence of popular venues like Justin Hemmes’ Coogee Pavilion has elevated the beach’s profile, drawing in new restaurants and cafes. Furthermore, Randwick City Council approved a substantial $111 million redevelopment of the Coogee Bay Hotel last year, further enhancing the area’s amenities.
Warren Ginsberg of Ray White Double Bay highlighted that the area is considered beautiful for young families, offering a beach lifestyle, proximity to top schools, and convenient access to the city. He also noted a trend of extensive renovations and new property builds within the suburb, which also contribute to pushing up prices. For example, a new semi in Mount Street recently sold for $6.8 million, significantly above its initial guide.
Challenges in the Luxury Market
Photo Credit: Domain
In contrast, the luxury property markets in Toorak and Vaucluse have faced significant challenges. Agents in these areas attribute the downturn to widespread economic uncertainty, high interest rates, and a slowdown in business performance. There has also been a reduction in overseas immigration, which traditionally boosted the luxury housing market.
Steven Zoellner of Laing + Simmons Double Bay observed a “correction” in the luxury market, suggesting that less expensive suburbs like South Coogee have been less affected by these economic pressures.
Industry professionals anticipate a change in these market conditions once interest rates begin to decrease. While some high-value properties in Toorak are still achieving record prices, the overall sentiment remains unsettled due to the current economic climate, interest rates, land tax, and the upcoming election.
Published Date 26-May-2025
