Two neighbouring suburbs are taking different paths as lifestyle demand, apartment growth and development reshape the local market
Since COVID, Elizabeth Bay has strengthened its appeal among people seeking a quieter harbourside lifestyle. SydneyLinks first observed this local shift several years ago. Buyers and renters were moving from surrounding suburbs, including Potts Point, in search of more outdoor space and a connection to the harbour.
That preference remains evident in today’s market. Elizabeth Bay’s median unit price is now around $965,000. Over the past 12 months, unit values have risen 11.3%. One bedroom apartments have risen 12.3%, while two bedroom apartments have recorded 15.1% growth.
The lifestyle is a major part of the attraction. Residents can live close to the water while remaining within easy reach of the city. Potts Point’s shops, restaurants and services are also just a walk up the hill.
Rental values have changed considerably since the COVID period too. Elizabeth Bay’s median unit rent is now around $710 per week. One bedroom apartments average $695, while two bedroom apartments are around $1,200.
Potts Point has experienced its own significant rental growth. In May 2020, one bedroom units rented for a median $543 per week. Two bedroom apartments were $825 per week. Today, those figures are around $720 and $1,100 respectively.
Sales prices have also moved substantially. Potts Point’s median unit price was around $801,000 in 2020. Current data places the suburb’s median unit value at approximately $915,000.
While Elizabeth Bay is attracting lifestyle-driven demand, another story is unfolding around Potts Point and neighbouring Rushcutters Bay.
Developers continue to look closely at opportunities around fringe areas of Potts Point, including Victoria Street. Potts Point has historically had a large renter population, creating opportunities to reposition older apartment stock and larger sites. Current data shows around 65% of Potts Point residents rent their homes.
The site at 145-153 Victoria Street, Potts Point demonstrates the scale that can exist within this tightly held area. The property occupies approximately 1,065 square metres. SydneyLinks has previously observed developers acquiring whole buildings and pursuing new opportunities across Potts Point.
This creates an interesting contrast between the neighbouring suburbs. Elizabeth Bay is increasingly valued for its harbourside lifestyle and apartment growth. Potts Point remains highly desirable, while also attracting attention for its development potential and strong rental market.
For owners, these differences matter. Two properties separated by only a few streets can appeal to different buyers, tenants and investors.
Understand where your property sits in today’s market
If you own in Potts Point, Elizabeth Bay or the surrounding suburbs, speak with Trish at SydneyLinks. Arrange a complimentary sales or rental appraisal to understand your property’s current value and how changing local demand may affect your next move.
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