Is it possible that the Eastern Suburbs has bottomed out even though there are more interest rate rises to come?

You’ll often hear property pundits say that the Eastern Suburbs property market doesn’t behave like the rest of Australia. In general high end property tends to rise sooner and by more than the rest … but similarly it falls earlier and harder.

Why is this?
Simplistically prices in all markets are governed by a combination of sentiment and interest rates. Different locations have a different mix of these influences.

Sentiment is based on expectation for future. Interest rates is based on reality now. That could explain why a more Premium Market moves first: Its mostly governed by sentiment. It also explains why a Premium Market swings higher and lower: Sentiment can be more wild than interest rates!