Sub 1million

This part of the market shows outlandish participation at home auctions and inspections in Sydney. It’s caught in a heat wave that’s not cooling down anytime soon.

Defined as primarily sub-1m dollar apartments, these entry-level properties make up the bulk of exchanges in Sydney right now. It’s these sub-mil babies putting the heat in the market. They’re responsible for sending a ripple affect through the small home, family home and prestige markets. People watch this part of the market closely because of the high demand here, drives up prices everywhere else.

Property types: In the first home-buyer category, we’re talking about one bedroom apartments and studios. We are also talking about little two bedroom apartments in high rises and small homes that are old, and run down. First home-buyers often end up buying an investment instead of a home, because they can’t afford to live where they would choose to. This means this first purchase might be more of stepping stone property or an intermediary purchase. The smart money is on hot spots where rental returns are solid.

This Rozelle apartment recently sold for $695,000. With an oversized sense of space & long views from the 8th floor, it is part of a tightly held harbour-side development. It offers resort-style living on the cusp of Peninsula attractions.

Hot spots: Smart buyers shop location first no matter whether they’re an investor or owner-occupier. They’re looking at suburbs like Rosebery, Petersham, Pyrmont, Botany or toward the burgeoning inner west suburbs of Marrickville. Dank Street with its successful food, art and wine precinct along with jacked up housing prices on Bourke Street, Redfern has ensured this once over looked area is on the ascent. Smart buyers have seen the growing influence of vibey Redfern and noted the hallmarks of a bounced late night scene, away from the CBD, Kings Cross and city towards the grungier inner west.

31 Barcom Ave, Darlinghurst in Darlinghurst recently sold for $741,000. It is a smart renovation; it’s a classic blank canvas. It’s a home in which designer furniture and coloured textiles can pop. It’s not about to date quickly and doesn’t have any features like carpet or wallpaper that could deter a tenant or buyer.

Think design: Nicky Lobo, Editor of Habitus Magazine says finding an investment property you would want to rent yourself, is a sound plan for the first-home buyer.

Open plan kitchen by Fiona Lynch, photo by Gorta-Yuuki courtesy of Habitus Magazine.

“Even if it’s an investment, young property owners look for design elements that resonate with them. They need to be able to picture themselves or someone they know, living in the property. An open plan kitchen is key to the way we live today. The kitchen is not just a functional space, it’s where people spend a lot of time socialising and entertaining. Closing off this space is quite a turn-off for a first home buyer,” Lobo says.

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