The recent news on the real estate grapevine is that Sydney's wealthy elite are ditching the eastern suburbs and looking at property in other areas.

Long regarded as the enclave of “old money”, Sydney’s affluent eastern suburbs are not losing their shine, but they are experiencing noticeable competition from a range of other suburbs in and around the city.

Over the past year, the city's property market has seen a migration of its wealthiest investors, which suggests that the appeal of the traditional, blue-chip suburbs in the east - with their choice of super-posh private schools and status mansions - may be lessening. Clearly, they are looking for something a bit different.

The lifestyle priorities of Sydney’s elite are changing

I suspect that few of us could resist the natural beauty, urban sophistication, and general one-upmanship of owning a property in Point Pier, Vaucluse, or Double Bay if money wasn't an issue. But the priorities of some multi-millionaires are shifting.

Sydney’s recent top house sales prove it. Though suburbs like Vaucluse haven’t lost their shine – as was proven in February 2022 with the sale of a property in Wentworth Road for $62.75 million - well-heeled buyers are now considering other suburbs like Tamarama, and even further afield.

Where are these new suburbs?

In April, we looked at the most expensive celebrity homes in Australia, but Sydney is its own property microcosm and recent top house sales show that wealthy buyers are now looking at suburbs like these:

1. Avalon Beach, where the gated estate Marara was recently sold for $40 million by Peter Higgins, the Mortgage Choice co-founder. The property is comprised of eight unique houses, with beach access and stunning views of Pittwater.
2. Lavender Bay, where Idlemere, a double waterfront block, was recently sold by Greg and Kerry Paramor for more than $40 million.
3. Manly, where 2 Reddall Street sold for $21.5 million in October and a knock-down in Shelley Beach went for more than $32 million.
4. Palm Beach, a suburb favoured by celebrities and investors alike which last year saw the sale of 83 Pacific Road for $26.5 million.
5. Mosman, where the sixth-most expensive property of 2022 on Stanley Avenue sold for $33 million.
6. Macmasters Beach on the Central Coast. Not the usual stomping ground of the rich and famous, it saw the sale of a property for $13.5 million. Unsurprisingly, this was an off-market sale, as so many of these prestige sales tend to be.

Why?

For the same reason that celebrities flock to Byron Bay, what these properties share with the eastern suburbs are the attributes that make Sydney so iconic - breathtaking, uninterrupted harbour and ocean views, stunning beaches, and easy access to the water. Sydney embodies the essence of Australia to many people, and its natural charm and beauty have made such an impact globally, recently securing its place as the best city in the world to live in and overall 5^th best city in the world in a survey carried out by Brand Finance. 

According to MD, Mark Crowe:

“With its stunning natural beauty, beautiful beaches, and iconic harbour, Sydney has earned a reputation as one of the world’s most desirable cities to live. As such, it ranks 1st globally in this dimension. Sydney is also considered a top location for retirement and thus ranks 2nd in this dimension. The city is attractive to retirees for several reasons, offering a diverse range of cultural and recreational activities, as well as a well-regarded healthcare system and excellent medical facilities. Unsurprisingly, sunny Sydney also ranks 3rd globally for its great weather.”

There aren’t many places in the world where you can have a quick surf during your lunch break

But dig a little deeper and there’s more to Sydney’s global high ranking than its spectacularly diverse landscape. Another obvious reason these uber-rich buyers are moving away from the more traditional trophy suburbs is the wake-up call from COVID that has pushed many of us to prioritise our mental and physical health. 

COVID was a wake-up call

Even if you can afford the portfolio of properties owned by the Roys in Succession, money can't buy you your health, and even the wealthy must make it a priority. And what these new trophy suburbs offer them - with their emptier beaches and greater opportunities for sports and well-being - is a retreat from the dangerous pressures of work. 

Now that La Nina is finally on its merry way, there’s no better climate to take advantage of Sydney's beautiful landscape and lifestyle, hence, this band of buyers are choosing pocket paradises over city chic. Close enough to work, yet far away enough to feel like an escape, suburbs like Sydney’s Northern Beaches, for example – and one of those areas in Australia fondly referred to as God’s Country – ticks all the boxes.

It's no secret that the wealthy prefer to buy off-market

Off-market sales make up around 20% of real estate sales in Australia and celebrities and people in the public eye are mainly drawn to this way of buying and selling for the obvious reasons of privacy. But there are a number of other advantages to this method that make it more appealing to the rest of us mere mortals. 

Lower marketing costs, speed of sale, and the choice to open/inspect properties when it suits both parties are just some of the benefits that help reduce the pain points experienced by buyers and sellers. 

Changing suburbs can be a stressful experience, let alone finding your perfect place to call home. When you sign up to Listing Loop for free, you not only access our marketplace of off-market and pre-market properties for sale, you can also take advantage of our range of property services that make the process of buying, financing and selling property a more seamless experience.

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