With Sydney’s median house price hitting an eye-watering $1.59million there is no wonder that many buyers are seeking a better lifestyle along the regional coastal towns but they might not be able to escape the million-dollar club, with median house prices rising north of $1 million even though they are far away from the major cities.
In fact, some of the regional coastal towns have even over taken Sydney’s steep house prices with Byron Bay Shire (Northern NSW) topping the rich list with a median house price of $1.81million closely followed by the beautiful southern coastal town of Kiama with the median house price overtaking Sydney’s and sitting at $1.595 million.
In the post-pandemic era, with families focusing on lifestyle over convenience, families are now willing to sacrifice travel time and the conveniences of living close to work, in order to live the lifestyle dream which is why the south Sydney region of Wollongong, with its bearable travel time to Sydney (fairly frequent access on trains to Sydney CBD taking around 90mins) has increased by 18.8 % and has inched above the $1million mark with the median now sitting at $1.01million.
And we are expecting the prices to be pushed further due to interest rates on the rise which will encourage some home owners to move away from the city and into regional area’s because these areas provide great lifestyle options. With this regional migration occurring, further interest rates may tip the scale for some Sydney siders and coerce them to move out of the City where they expect to find a more affordable mortgage, or rental property.
Another reason for homeowners to relocate is due to cost of living pressures. Everything is always more expensive in the city, so moving out of the big smoke should also save families on travel expenses, petrol costs, eating out, and entertainment.
Some of the best family suburbs gaining popularity in Sydney include:
Kirrawee, Sutherland Shire.
This leafy suburb is very popular for families as it is close to the Royal National Park, a short drive to Cronulla’s beaches, and has excellent transport links. There are high performing primary schools and a high school with a good reputation in the area.
House price growth over the past 12 months was 34.5% and median 3 year growth of 53.7%. Median house prices in Kirrawee are $1,613,500 and this is on the rise.
We are seeing a lot of families move into Kirrawee once they are priced out of surrounding waterfront suburbs such as Gymea Bay, Grays Point, and Yowie Bay. These families are buying older houses and renovating with high specs which is starting to transform the suburb away from its colonial weatherboard history. The gentrification of this suburb is also due to trendy new café’s and restaurants opening up on the north side at the South Village development and new supermarkets opening in Kirrawee Village.
North Wahroonga, Upper North Shore.
On the upper end of the market is another leafy family suburb, North Wahroonga which is bolting ahead in popularity. Nestled close to the Ku-ring-gai Chase National Park, it’s a favourite with families wanting to get back to nature. Median house prices in the area have risen to $2,538,000 after a 12 month capital growth of 26.8%. This top performing suburb has a 3 year growth rate of 49.3% reflecting the demand for larger properties away from the city CBD. Properties in this area are in high demand but are usually “tightly held” which refers to the low turnover of properties for sale as properties are being held onto for the long term.
Rodd Point, Inner West.
Sitting on the popular Bay Run on the Parramatta River is Rodd Point. Although the houses are on smaller blocks than its’ southern and northern comparisons, there are still some sizeable homes being built over multiple stories with all the high specs. Rodd Point has seen a 42.7% increase in house price growth in the past 12 months, and a staggering 71.2% in 3-year growth which brings Rodd Point to be one of the top performing family suburbs in the last few years. A short trip on the bus will take you into the city and its water views have made this a very popular choice for well-off families. Median house price is sitting at $3.253m which is not surprising given many properties are waterfront as well as enjoy city views.
Armidale, Northern NSW
With median house price sitting at $459,000 this is an affordable investment for a lot of buyers. The 12 month average growth has been 19.22% alongside gross rental yield hovering around the 5% mark makes Armidale a great investment for buyers looking to tick the boxes. With a lot of planned infrastructure and development alongside gentrification of the area, this is a town which has seen a lot of migration in recent years of city slickers looking for a country lifestyle.
Orange, Central West
This chic country town is booming as a foodie central. Keeping true to its’ country charm, Orange has become very renowned for its highly rated restaurants and award-winning wineries. With the median house price at $652,500 it is more expensive than Armidale but you are still getting more ‘bang for your buck’ than in the big cities.
The 12 month growth has been 30.24% and rental yields are sitting around 4-5%.
Lessons we have learned.
One of the biggest trends when looking for attributes is a home office, as well as properties with a yard space. Being cooped up during the pandemic has changed the needs of buyers and renters so properties with these attributes will always be sought after and more valuable.
If you are looking for an investment property in NSW, you would likely be looking for a positively geared property that will give you a good balance of cash flow and in an area with predicted capital growth.
We are seeing properties that tick these boxes mostly outside of Sydney in the more regional areas. This is further discussed in my book, Buy Now.
If you would like to discuss your personal needs and the best area for to investment, don’t hesitate to call us on 1800 146 837 Aus Property Professionals.
If you are looking for a buyer’s agent to assist you with purchasing a home or investment property in the Sydney, Brisbane and Newcastle regions, as well as SA, TAS, ACT, VIC, NSW & QLD please get in touch with Lloyd Edge and his team at Aus Property Professionals here or give us a call on 1800 146 837!
