Where is the next area in Sydney property?
If you have lived in Sydney your whole life you may have heard your parents say that ‘back in our day nobody wanted to live in areas like Paddington or Balmain’. Gen X or younger find it impossible to believe that people would never want to live in these areas, but our parents can! They remembered the areas changing, shops changing and neighbours changing. They also remembered the fact that they did not buy into those areas and many years down the track wished they had.
For me I always remember people talking about the day that Redfern was going to be the new ‘cool’ place to live. One of the reasons this happened was because the family buyer was priced out of Paddington, Surry Hills and Darlinghurst. The family market is the driving force in emerging areas.
One of the last places you can buy family property in the eastern suburbs for under $1.5 is Mascot and Botany. You will see very busy open homes full of families, prices still growing and competition at auctions. In terms of demographics, the area is gentrifying with couples that would have typically been looking in more of the “acceptable” parts of the eastern suburbs fighting over their slice of Australia. The pink dollar has also been gracing the area with the high streets now evolving to accommodate the new tastes. Cafe’s like Botannix, Bourke Street Bakery, Brasserie Bread and Botany Bites are pulling in crowds from all over Sydney.
In the Inner West the areas that buyers traditionally did not want to buy into were St Peters and Tempe. These areas are close to the airport and have aircraft noise but again the family buyers were priced out of the more “acceptable” parts of Inner West so they started to buy up these areas. Property prices have now grown 20-30% in the last 12 months alone in these parts of Sydney.
So, the biggest question is – where is the next big thing (suburb)? When trying to identify emerging areas remember that the family market drives them. Look at areas that the median house price falls just under or close to the median house price of Sydney. Also look at public transport time into the CBD, as time is crucial for mum and dad working in the CBD.