Upsizing In Sydney’s East: Is It Achievable?
In Sydney’s east, upsizers are often at a disadvantage.
While their property may sell for a high price, they also need to buy back into an extremely competitive market. Is it simply a matter of moving further from the city?
Here’s what you need to know if you plan to upsize and want to stay in the east.
Current market trends: Upsizing for under $2 million
The news that Sydney’s median house price crossed the $1 million mark this year was definitely a blow to those planning to take the next step on the property ladder. Economists have been predicting a gradual fall in property values for some time now, but even if we are past the peak, Sydney’s eastern suburbs will still be protected from any sudden price drops.
The good news for buyers is that there are options for upsizers under the $2 million mark, especially in the inner city micro-market. A three-bedroom terrace house in Paddington, for example, still comes in at around $1.9 million, while median house prices in neighbouring Darlinghurst and Surry Hills also remain at just over $1.5 million.
Better location vs. bigger floor plan
While the traditional freestanding house with a backyard is still very desirable, we know many families are willing to trade extra space for a better location in order to stay in the eastern suburbs. In the reliably strong markets across Sydney’s east, the financial benefits of moving into an apartment in your ideal suburb may well be worth the compromise on space. If another apartment is on your list, focus on finding:
- A location that shortens your commute or has key amenities within walking distance.
- Improvements over your last home: Is this apartment better built? Does it have a better aspect? More room to park the car?
- Capital growth potential: If you can’t gain extra physical space, make sure you buy into a market with plenty of room for price growth over the longer term.
Upsizing the right way: Stay informed, be flexible
In many ways, upsizing is no different to any other real estate decision – market research, careful budgeting and considered timing are always important. But buyers who make the most of their move into a larger property also tend to have these strategies in common:
- Know your target market: Talk to local agents and gather as much information as you can about the suburbs you want to live in. Is there room for capital growth? Are there particular types of properties that will be better long-term investments?
- Budget for non-negotiables: To find that bigger property, it’s likely you’ll have to compromise in at least a few areas. With your upper budget limit in mind, decide what’s most important to you, so you know you’re spending more on a property that truly meets your needs.
- Look just outside your target market: It’s easy to become attached to the idea of a particular postcode, but keep in mind that neighbouring suburbs may be just as desirable in five to 10 years’ time. Meanwhile, you’ll have that much more flexibility in terms of your budget.
The challenges of upsizing in Sydney’s east are undeniable, but finding a property that ticks all your boxes is possible with expert guidance.
To help make the most of your move to a bigger property, get in touch with our team today.