Sydney is changing...
Wednesday 12 Apr 2017
There is no doubt Sydney is changing. Demand and values are increasing across an ever expanding geographic area with once working class suburbs now boasting an average property price substantially in excess of a million dollars. The common belief is that spread is being driven as buyers seek affordability and find themselves being forced to move out from the city centre. But there is actually another interesting phenomenon at play.
In most cases residential property decisions are motivated primarily by family requirements and financial opportunity. The search for a new home is driven by what the family needs to be comfortable and what they can afford.
But there has also been an element of aspiration at play. Historically as a buyer’s finances improved they would seek properties of higher value in a more traditionally affluent suburb. A nice home in the right suburb was considered a measure of having ‘made it’.
That is no longer automatically the case.
Our team is increasingly finding buyers who don’t want to move out of their local suburb even if they have the financial ability to do so. They want to stay within the community they know and within easy reach of friends and family. The lure of a grand home in a well-known location is not enough when faced with the very real prospect that traffic congestion would effectively isolate them from those family and friends.
And so we are seeing a new trend where upwardly mobile individuals and families are not moving suburbs. They are seeking high end properties or properties with renovation potential in their local area.
The Morton offices in Rosebery and Penrith provide clear examples of that trend. The increase in property values in those suburbs has come as much from locals wanting to stay local as it has from buyers supposedly being forced into the area because they cannot afford elsewhere.
More than just an exciting improvement in property prices in those areas it also represents an exciting development for the local communities.