Sydney Inner West residential market continues to defy expectations: HTW

The Inner West has continued to defy expectations with the market going from strength to strength across all suburbs, according to Herron Todd White’s latest report.

The property valuation firm says that auction results continue to hover between 85% and 90% with the continued lack of stock now being the main driver.

"The strongest growth has been for houses in the $2 million to $4 million price bracket and although growth has slowed for units, the $1 million to $1.5 million price bracket has been the strongest.

The suburb of Rozelle has seen some of the strongest growth across the inner west with a 2016 median house price of $1.577 million, up 13.5% from 2015 (source: PriceFinder)," the report advised.

Rozelle has always been a highly sought after suburb and demand is driven by proximity to the CBD, excellent bus services and the café culture.

"Rozelle comprises a mixture of property styles, with period style homes traditionally in the highest demand.

As with many period style homes in the inner western suburbs, high quality renovations and well-designed extensions tend to achieve premium prices.

An example of this is 202 Evans Street, Rozelle (above) which sold on 10 February 2017 for $3 million.

This circa 1900s property is situated on a 251 square metre allotment and has been renovated and extended, comprising 4-bedroom, 2-bathroom accommodation with a single lock-up garage," the report stated.

The main demand for this price point in Rozelle is from the owner-occupier market rather than the investor, as owner-occupiers see greater opportunity with dated or dilapidated properties in need of renovation.

“Although we expect houses in Rozelle to see continued growth, we predict it to be more subdued than the previous three years,” the report stated.