The month in review: Sydney
By Herron Todd White
October, 2009
With affordability being resolved after the GFC through
Federal Government handouts and lowering of interest
rates, home buyers are again looking at desirability
factors when buying a home. Whether they desire to a ‘lifestyle’, a view or to even get to work faster, the location
of a property is “paramount”. The better the location the
better the price has been the mantra for some. But this
is not always the case. There are some suburbs which
are similarly desirable but which don’t fetch those prices
achieved by their neighbours - and may never.
If you want to live near the beach but still be handy to the
city – where better than the Eastern Suburbs. Can you go
wrong?
Vaucluse is handy, the name is well known, the harbour
located on one side and the ocean on the other. However
located north of Bondi Junction where the rail line ends,
it is reliant on bus services for public transport, the roads
are choked and the shopping is vershadowed by the
behemoth that is Westfield Bondi Junction. Certainly a
cheaper entry to the prestige market but cheaper returns
also (especially if there are no views). Bondi, Bronte and
Coogee beaches are all within 8 to10kms of the city
but not exactly affordable. They are well known for the
lifestyle, housing options and views offered.
Not in your price bracket? So, how about Maroubra?
With its magnificent beach, 10 kms to the city, and mix
of housing styles it is certainly affordable. The downside
is a fair portion of the suburb is populated by long term
Housing Commission. The lower socio-economic mix
does not suit everyone.
Let’s look at the next beach, Malabar. A bit further again
from the city with big blocks of land, large bay and
surrounded by golf courses. Problem? Could it be Long
Bay gaol and a sewerage treatment plant? They will always
have an impact on the price achieved for the suburb.
Little Bay and La Perouse, further down the road suffer
the stigma also, despite beaches, bays and golf courses
to burn!
Moving further away from the city but still hugging the
coast, we have another bay side suburb – Kurnell. Situated
in the Sutherland Shire approximately 36 kilometres from
the CBD, it is surrounded by water – great fishing and
large blocks of land but an oil refinery within its midst
has an impact on desirability and therefore the price
achieved. Development is also considerably curtailed by
the State Environmental Plan and the future desalination
plant. Constant air craft noise from nearby Mascot doesn’t
help either.
Want a water view out the front and a National Park at your
back? Then, it doesn’t get much better than Bundeena.
Only 20 minutes from Cronulla– by ferry that is - where
you can then hop onto a train to the city, it offers a nature
lovers perfect lifestyle. However if you wanted to drive to
the CBD, add another hour, don’t forget the milk on the
way in or the gumboots in case of heavy rain when the
weir is closed and there is no access.
So, forget the seaside dream, let’s concentrate on getting
closer to work, shops, theatres, sporting venues, transport
hubs and so on.
Recently large scale redevelopment along the Parramatta
River has seen the emergence of some newly planned
suburbs including Homebush Bay and Rhodes. Rhodes
includes a recently completed shopping centre and
commercial park and is situated on the railway line.
Homebush Bay is a short drive to these services. On
offer are modern unit complexes with access to the
riverfront and landscaped common areas. Downside?
The completion of these complexes can be a substantial
time after the deposit is paid and the market value at
completion may not match the original purchase price.
You as the purchaser are then caught in a tricky financial
situation. With buildings being completed and new stock
released to the market, supply and demand levels affect
the price achieved. The ‘second hand unit’ (those that
have been lived in) may need to be offered at a substantial
discount to move quickly against the new stock and value
can decrease considerably. Not necessarily a short term
investment strategy.
If you wish to get to the Parramatta CBD in 5 minutes and
the Sydney CBD in 20, you choose to live in Rydalmere
or surrounds such as Dundas. Characterised by 1950’s
and 1960’s brick freestanding homes on good size blocks
of land, it’s certainly affordable and seen as an entry
point– that’s if you don’t mind living with the older style
industrial properties, the carpark of Victoria Road and
Housing Commission houses within your midst.
If the desire is to spread your wings and take the lifestyle
option of the Blue Mountains, be aware not all localities
perform as well as others. Leura and Glenbrook are prime
suburbs with character homes and bush and city view
corridors. Hazelbrook and Lawson are on the railway
line and enjoy local services but value bands have seen
limited movement in the past five years with possible
reasons been the constant roadworks associated with the
upgrading of the Great Western Highway and uncertainty
on future infrastructure works.
The Sydney property market can certainly offer the savvy
investor opportunities for capital gain in both short and
long term markets. Be conscious however that if it appears
a bargain it is for a reason. Have a good look at the profile
of a suburb before you put down the deposit. As always
research and some local knowledge is the key. |
