The booming hospitality industry in Sydney’s eastern suburbs is leading to higher residential housing prices in the area, according to Savills.

Despite the downturn in the fashion industry and household goods sectors, restaurants, cafes and restaurants continue to thrive in the city’s east. 

The company’s Senior Executive, Metropolitan and Regional Sales David Hickey said the increase was having a significant flow-on effect to the surrounding residential property prices in places like Coogee and Woollahra.

“Both Coogee and Woollahra are yet to experience the price decline the majority of the Sydney metropolitan is currently going through,” he said.

“There is no doubt a quality retail strip attracts affluent consumers and purchasers from a residential and commercial property perspective.”

Median house prices in Woollahra and Coogee are 63 per cent and 57 per cent higher respectively than the median house price in Sydney – $1,101,532.

Mr Hickey highlighted the recent infrastructure around Coogee Bay Road as a reason for continued optimism for the area’s homeowners.

“The removal of overhead powerlines, widening of footpaths and installation of new pavers and tree is well underway with stage one due for completion in early 2020. The upgrades will have a positive impact on the whole retail strip of Coogee Bay Road,” he said.

“There is certainly a direct correlation between compound growth rate of 8 per cent in both Coogee and Woollahra which attributes to a higher disposable household income, and this has a positive flow-on effect for the local strip retail businesses with strong demographics servicing volume of trade.”

Over the past 12 months there has only been two transactions on Queen Street Woollahra and four on Coogee Bay Road, Coogee, highlighting how tightly held these type of assets have become.  

However, 146 and 148 Queen Street, Woollahra is set to hit the market through David Hickey, Tom Tuxworth and Nick Lower of Savills Australia and will be sold individually or in-one-line.

“This property will give both investor and owners occupiers the opportunity to add instant value through repositioning to take full advantage of customers who live in the third wealthiest suburb in NSW and bustling 7-day pedestrian foot traffic on Queen Street,” Mr Tuxworth said.

“146 and 148 Queen Street, Woollahra is surrounded by institutions including Victor Churchill, Chargrill Charlies, Bistro Moncur, Chiswick, Woollahra Luxe and Big Mamas.

“Both shops have been held for over 30 years so we expect significant local and offshore interest mainly due to the irreplaceable nature and scarcity of opportunities like these being offered to the market.”

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