Sydney's hot eastern suburbs residential market: HTW
The eastern suburbs have continued to define the meaning of a hot, hot, hot property market, according to Herron Todd White’s recent report.
The property valuation firm says that although the east has been hot across the board.
It considers the $2 million to $3 million price bracket for houses and $1 million to $1.5 million price bracket for units to be the strongest price points in the current market.
Paddington has been a stand out suburb for houses with a 2016 median price of $2.125 million which is up 21.4% from 2015 (source: PriceFinder).
Paddington is a highly regarded suburb close to Sydney’s CBD and comprises mainly period style terrace homes.
"The high performing Paddington market has recently been driven by high quality renovations of terrace style housing which is popular with the owner-occupier market, mainly professional couples and small families.
An example of such a property is 2 Olive Street, Paddington (above) which sold in March 2017 for $2.46 million.
"This property is a typical Paddington terrace comprising 3-bedroom and 1-bathroom accommodation with no car accommodation and is situated on 101 square metres of land," the report stated.
The home at 2 Olive Street is classified as being architect-redesigned and features a high quality renovation, exactly what the market demands, resulting in a very strong sale price.
"With Paddington being such a highly desirable location and having a limited supply of stock, we expect to see recent strong sales prices sustained and predict continued strong growth in the short to medium term," the report commented.
Within the eastern suburbs unit market, the suburb of Coogee has been a stand out performer, especially in the $1 million to $1.5 million price bracket.
The 2016 median price for Coogee units was $1,037,500 which is up 17.9% from 2015 (source: PriceFinder).
"As an example of what this median unit price will get you, 7/3-7 Kidman Street, Coogee recently sold for $1.125 million.
"This property was a near original 1970s unit comprising 2-bedrooms and 1-bathroom with a 1-car lock-up garage and features restricted ocean views.
"This market is driven by both investors and owner-occupiers which comprise a mixture of singles, couples and down-sizers.
"The desirable beachside location has always been a main driver for the Coogee unit market and with limited new unit development in the area, we expect to see the trend of strong growth continue into the future," the report stated.
The prestige market in the eastern suburbs is continuing to see strong sale results.
"As expected, the main drivers of this prestige market are blue-ribbon suburbs close to the city within popular lifestyle neighbourhoods, close proximity to private schools and with view corridors of the ocean or Sydney Harbour.
"Demand is still extremely strong for high quality renovated homes and units with cashed up and time poor buyers ready to move on the right property, without wanting to do the hard work themselves," the report suggested.
A recent example is 84 Paddington Street, Paddington which recently sold in March 2017 for $7.1 million.
This property comprises a 5-bedroom, 3-bathroom Victorian terrace with parking for three vehicles and situated on 191 square metres of land.
The property was previously sold on 6 March 2013 for $2.8 million prior to renovation.
"This continued strong demand and limited supply of prestige property will keep prices strong in the short to medium term."
