Sydney

 

The Smartline Report – March Edition

 

The month in review: Sydney

By Herron Todd White
March 2016

Given the growth in values that have been achieved within the Sydney metropolitan area of late, the metamorphosis of older suburbs into modern living spaces that have been driven by location and buyer demand have changed the faces of many for the better.

This month we have predominantly focused on suburbs within 20 to 25 kilometres of the CBD as the primary location for this shift.

South
Starting with the southern end of Sydney, we have seen Engadine and Kirrawee (Sutherland Shire) as some of the standout performers with significant growth and redevelopment changing the area.

The buzz around these areas has mainly come from the affordable price point for first home buyers and upsizers. In addition, the rezoning for duplexes and new unit complexes has created an increase in current development applications.

The Engadine shopping precinct has expanded over the past decade with the big three supermarket chains along with a number of restaurants and cafes drawing people to the suburb.

Engadine is seen as ideal for buyers wanting to live within one of the few regions in Sydney bounded by national parks, close to Sydney’s southern beaches and with direct accessibility to the CBD which is less than 50 minutes by train. The next five to ten years in Engadine will see more development of high density units and duplex style dwellings. Engadine has seen median house prices increase from $600,000 in December 2012 to $885,000 in February 2016 with unit median prices increasing from $415,000 to $617,500 over this time period (source: realestate.com.au),

On a larger scale, Kirrawee is seeing huge redevelopment with a new $8.5 million hotel development on the Princes Highway, which was once home to a service station and motor mechanic.

The new hotel will be almost opposite the Brick Pit site, which sits at the junction of the existing retail strip, industrial factories and residential development, only 200 meters from Kirrawee train station. This site is approved for approximately 750 residential apartments between six and 14 storeys with a large commercial and retail presence and will be constructed at a cost of approximately $500 million.

A similar large scale development is already under construction at Woolooware Bay which neighbours the Cronulla Sharks Football Stadium. The former car park and playing fields will be transformed into approximately 600 apartments with resortlike facilities including pools, spas, massage room, rooftop theatre and BBQ area set amongst lush gardens. There will be a retail, cafe and dining precinct, with the entire development adjoining foreshore parklands.

East
Double Bay in Sydney’s eastern suburbs has been revitalised over the past two to three years brought on by a much needed face lift for the commercial and retail precinct transforming into a vibrant commercial hub.

The recent redevelopment includes new retail shops, Woolworths supermarket and grocery stores, cafes, restaurants and speciality shops. It also includes the recently completed 2,300 square metre Double Bay Library, giving residents access to state-of-the-art facilities in addition to 442 public parking spaces.

Other major changes include the redevelopment of The Intercontinental Hotel, formerly the RitzCarlton and the increased nightlife with various new restaurants, bars and nightclubs which is attracting the younger generation to the area. Night time venues have seen increased crowds since the lockouts in Kings Cross and the CBD which might not be seen as a great result for some, but is still creating a buzz around the area.

Double Bay’s central location with direct access to ferry services and the harbour, Edgecliff train station and new shopping and commercial precincts have brought its reputation back to life. In five to ten years Double Bay will still be a high demand suburb with potential for more medium density developments to increase its popular demand.

As throughout its history, Double Bay isn’t the cheapest place to live with the median house price being $3.185 million as at February 2016 up from $2.405 million in December 2012. The average unit price was $1.25 million as at February 2016 up from $765,000 in December 2012 (source: realestate.com.au).

 

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325