Downsizers finally start to get their chance in Rose Bay as new apartment supply grows
Rose Bay has long stood as one of Sydney's most prestigious Harbour suburbs, attracting those seeking both postcard views and a vibrant lifestyle.
Price growth has been consistent, solidifying its reputation in the trophy market, highlighted by a record house sale that reached $45 million in 2021.
Historically, the new apartment market in Rose Bay has been virtually non-existent, leaving locals with limited options: either relocate from the suburb they love or downsize to an older apartment in a building constructed decades ago.
However, a shift is underway. The new apartment market is beginning to flourish, offering fresh opportunities for buyers.
Last year, Rose Bay recorded 69 house sales exceeding $3 million, compared to just 29 unit sales, according to CoreLogic. However, that gap is narrowing; as of 2024, there have already been 36 house sales over $3 million and 32 unit sales, signaling a growing supply and increasing interest in new apartment living.
Indeed that is reflected in the data from MatterFact, the new data from Urban.com.au.
Rose Bay has emerged as the most searched suburb in the Eastern Suburbs over the past three months on Urban.com.au. There was a 48 percent increase in searches from June to July, with last month’s search volume reaching its highest level since April 2023.
The metrics driving new apartments in Rose Bay are largely influenced by the high cost of land, the cost heightened due to Rose Bay's proximity to the beach and the harbour, its charming village atmosphere, and the prestigious Royal Sydney Golf Club, one of Australia’s most exclusive golf courses and host of the Australian Open.
While land prices are high, new apartments can command premium prices due to the strength of the local housing market and the relative undersupply in the new apartment sector.
Generally, most new developments tend to have anywhere between 10 to 15 apartments, given the strict height limits in place by the Woollahra Council.
The newest apartments in Rose Bay come from the likes of regular Eastern Suburbs developers Stargate Property and Fortis.
Builder-developer Stargate is nearing completion of its Everose development on Old South Head Road.
Only recently launched to market, Everose comprises 26 two and three-bedroom apartments with outdoor garden courtyards or terraces and kitchens kitted out with premium V-Zug appliances.
Fortis is soon to start welcoming buyers to its completed Atlas development on Spencer Street.
Recently completed by Lords Group, Atlas has just 12 apartments designed by MHN Design Union.
Fortis is already working on its fourth multi-residential development in Rose Bay. Last month, Urban revealed the development arm of Pallas Capital lodged plans for its recently acquired Ian Street site.
They're planning 12 apartments, 11 three-bed and one two-bed, across a five-level building at 10-12 Ian Street. They've had MHN Design Union handle the architecture again.
Read more: First look exclusive: Fortis plan new Rose Bay apartments
One of the most exciting developments Rose Bay has seen in years looks set for the fringe of the Royal Sydney Golf Club.
Orosi, a fully integrated developer with its own construction and architecture arms, will be developing a part four, part five-level building on the corner of The Avenue, Old South Head Road, and William Street.
On offer for buyers will be 50 two and three-bedroom apartments. The unrepeatable site spans over 3,000 sqm.
The apartments will sit above a new vegan cafe, restaurant, and a commercial space that will act as the display suite during construction, before turning into Orisi's new office on completion.
Read more: First look exclusive: Orosi plan Rose Bay shoptop on key gateway site
