There’s been a re-alignment of thinking on many levels in the wake of the COVID-19. As a nation, we are embracing new ways of doing business and socialising. We’re adopting strategies to maximise both community health and economic stability.
According to recent media reports, part of this awakening includes residents fleeing Sydney and choosing to resettle in regional locations and smaller capitals. We’ve all grown weary of high-density living, are happy with working from home and are yearning for relaxed lifestyle centres.
For some, a chance to decentralise post-pandemic might work, but for most it’s a short-term daydream. When we return to a more normal way of life, the inconvenience of being away from Sydney will become apparent. Hence the shift to the regions is unsustainable long term.
On the other hand, the current relocation mindset is presenting Sydney buyers with a window of opportunity that can’t be ignored.
Short-term upside
Sydney’s excellent long-term potential is grounded in hard facts.
We are the financial capital of Australia with major industries, excellent employment options, cultural and lifestyle attractions and comprehensive infrastructure.
Sydney is our nation’s global city and once we emerge from the crisis, it’s appeal will strengthen across the world. A world that looks to us with increasing envy.
But at this very moment, closed state and international borders coupled with the run to regions is resulting in some excellent inner suburb buying opportunities.
Here are six suburbs set to deliver excellent long-term prospects in my opinion.
Alexandria
Positioned just five kilometres south of Circular Quay, Alexandria is primed for long-term growth. It offers a textbook example of gentrification as accelerates past its industrial roots and toward an urban-cool vibe.
While listing numbers dropped in March through to May this year, SQM Research statistics show August 2020 listings were back up to August 2019 levels… and more properties means more buyer choice. Realestate.com.au shows the current median house price of $1.51 million is down slight on the April 2020 figure of $1.55 million and hence represents good buying at the moment with listings on the rise and prices remaining flat.
Annandale
A prime inner city suburbs with Rozelle Bay frontage, Annandale is a dream home location for many Sydney residents.While monthly listings fell dramatically in January and February, they’re now back up to pre-COVID levels according to SQM Research. Realestate.com.au showed a median house price of $1.592 million, which is down slightly on the $1.663 median in May 2020 when listings were tighter.
This combination of more listings and retracted median price indicates now is a great time to consider buying in this blue chip Inner West suburb.
Darlinghurst
The epitome of urban cool in Sydney, Darlinghurst sits just two kilometres south of the CBD. It is riddled with cafes, restaurants and bars – the sorts of features which ensure its long-term appeal.
Darlinghurst’s listing numbers have remained reasonably high this year according to SQM Research. The suburb has a median house price of $1.73 million at present – there’s been little movement from this figure over the past year.
This adds up to prime buying for those looking to enjoy the Darlinghurst lifestyle while riding the next price cycle.
Paddington
Paddington’s reputation for eateries, markets, restaurants, retail and lifestyle is renowned.
The suburb’s listing numbers have been on a bit of a rollercoaster this year but are now trending back towards pre-COVID levels. Its median house price is relatively steep at $2.395 million, however this has been fairly consistent over the past two years, meaning today’s purchasers can look forward to long-term capital growth when the next upturn kicks in.
Balmain
Another dream location in Sydney, bounded by the Harbour on two sides and offering one of the most affluent addresses in the city is Balmain.
Between April and August this year, listing numbers rose 34 per cent according to SQM Research. The median house price is $1.94 million, down from its annual peak of $2.055 million in 2017 according to realestate.com.au.
That spells serious opportunity for cashed up buyers ready to purchase in the current environment.
Neutral Bay
This Lower North Shore address provides striking views and Harbour access, and it’s just a short drive to the CBD via our world-famous bridge.
Neutral Bay listings have risen steadily since April this year and are now back to around pre-COVID levels according SQM’s numbers. It’s median house price of $2.335 million puts it well beyond many buyers’ budgets, but given the annual median in 2018 was $2.476 million, there is obviously potential for future capital gains.
All of these locations offer prime real estate. While some Sydney-siders might currently believe that relocating away from Sydney looks good, inner-city addresses remain the best long-term option for buyers.
And given owners often choose to retain their property through two or three price cycles, it makes no sense to ignore the excellent opportunities on offer at present.
The key to locating great property in this tumultuous time is to contact us. We receive calls regularly from our agent networks presenting both on and off-market deals for our clients. We can source and secure the ideal property – one that will provide the best outcome for you and your family as we pass through the crisis and beyond.
