Longing to own a house within 10 kilometres of Sydney’s CBD and still have change from $2 million? Most Sydneysiders might quote Darryl Kerrigan in The Castle and say, “Tell him he's dreaming!”
But this need not be a pipe dream. A recent SMH article says a few city-fringe suburbs still offer homes under $2 million – but not for long. Two interest rate cuts by the Reserve Bank of Australia this year – and the possibility of more – mean there’s an influx of buyers trying to get a slice of Sydney’s affordable(ish) property pie.
Says Dr Nicola Powell, Domain’s Chief of Research and Economics: “...as we see rates being reduced further, it will provide more momentum for the housing market. That will boost buyer sentiment and confidence as mortgage rates continue to fall. We won’t see a price boom, but we will see growth, particularly in those sub-$2 million prime locations.”
Location, location, location: we’re talking inner-city suburbs like Redfern, Erskineville, Leichhardt and Newtown. These areas offer a taste of inner-city life, with terraces and townhouses that bring charm, character and convenience – plus a (relatively) cost-effective median house price under $2 million.
In Erskineville, agents are reporting up to 40 groups at open homes – double what they were seeing just a few months ago. Good homes on good streets? Expect four to six serious buyers fighting it out at auction. Buyers range from first-home hopefuls to investors and knockdown-rebuilders.
Here’s where median house prices currently stand:
- Redfern: $2m, up 10.7 per cent over the past year
- Leichhardt: $1.925m, up 0.8 per cent
- Erskineville: $1.910m, up 10.7 per cent
- Newtown: $1.827m, up 5 per cent
- Botany: $1.821m, up 6.5 per cent
- Bexley: $1.669m, up 11.6 per cent
- Rockdale: $1.721m, holding steady
- Campsie: $1.575m, up 2.8 per cent
So why the sudden urgency? Buyers remember what happened the last time interest rates dropped – demand spiked, and house prices surged. They’re keen to get in now, while the door’s still open. The only things giving some would-be buyers pause are cozzie livs, which is still hitting hard, and political and economic uncertainty overseas – particularly in the USA.
Still, for many Sydneysiders, the lure of inner-city living without completely breaking the bank is proving too tempting to ignore.
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