Insight

05.10.16  Property Trends

 

Transformation Of Sydney’s Eastern Suburbs: Where Will We Be In 2036?

What Sydney looks like is changing dramatically and the eastern suburbs is no exception.

In the next 20 years, we’ll see the area develop and change into something quite different from today. Partly, this is due to social changes and trends, but it’s also to do with government strategies and plans that will shape what the east looks like into the future.

Here are some of the trends we’re noticing that will change the fabric of the eastern suburbs.

The population of the east getting older

Between 2011 and 2036, the eastern suburbs’ most significantly growing population will be those aged over 65. In fact, the Eastern Suburbs Economic Profile prepared for Randwick, Waverley and Woollahra Councils expects this proportion of the population is expected to grow by more than 40 per cent in the next two decades.

As a result of this shift in demographic, health-related services and jobs in this industry will increase. There will be increasing demands on Randwick’s health precinct, with commuters coming from all over Sydney to work in the area and high patronage of these facilities by locals and those from surrounding areas.

The ageing of the population also means a rise in aged care facilities and age-appropriate developments. Already, we are hearing of top-end, prestige-style aged care facilities in the pipeline, seeking Development Application approval through council that are like nothing we’ve seen before.

Offering high-end finishes, higher levels of care and larger homes on a square metre basis, these facilities will cater to local home owners who are ready to downsize into aged care and have the money to spend post-property boom.More students in the area

Another growing segment for the eastern suburbs will be the increase of students in town. With the Commonwealth Government actively looking to increase the student population by 40 per cent to 2025, the education hubs around Randwick are likely to be hot property.

Along with this will come a higher demand for short-term rentals and an opportunity for investors to make the most of this surge in interest.

We expect that as the new South East Light Rail is developed, apartments around these rail stops and within walking distance of the new transport will be highly in-demand from tenants.

Bigger and more efficient retail and business centres

In 2012, the Eastern Sydney and Inner West Regional Action Plan was released. Within this plan were seven priorities for the east, including better transport, economic growth, affordable Sydney real estate housing options and improved access to healthcare.

What also became clear was a focus on expanding the retail centres that the east already has, making them powerhouses that the rest of the area revolve around. For instance, Bondi Junction was flagged as a major centre with plans for new office development to provide an additional 2000 jobs by 2031.

The Randwick Education and Health Precinct was flagged to provide an additional 6,000 jobs by 2031. Overall, Botany Bay, Waverley and Woollahra together will provide 20,000 new dwellings and 25,000 jobs in the next 15 years.

Increasing exclusive appeal of the east

With all of this development and population growth, there will be significant pressures to redevelop and build up this part of Sydney.

But most planning documents emphasize that property development needs to be balanced with low-rise mixed urban form, heritage, parks, open space and the village atmosphere.

As much of the rest of Sydney becomes dominated by high rises, it’s likely some of the east will retain its exclusive appeal – providing larger family homes that will increasingly sell at a premium.

As these beautiful freestanding family homes become even scarcer across the city, it’s likely they’ll be even more coveted as the ideal Sydney real estate.

Download our 2018/2019
Eastern Suburbs Market Report

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