10 Reasons Why Sydney’s Inner West is (Still) Booming
Welcome to Sydney’s Inner West, home to some of Sydney’s most multicultural, stylish and green residents.
The Inner West is one of the oldest areas of Sydney, stretching from Chippendale through to the Strathfield business district. Here you will find some of Sydney’s most up-and-coming suburbs, including Ashfield, Newtown, Glebe, Balmain, Marrickville, Dulwich Hill and Leichhardt.
If you’re drawn to places pulsing with cultural legacy, you’ll feel right at home in the Inner West. With streets lined by Federation homes and Victorian terraces through to roomy Californian bungalows and modern red brick abodes, this area is a melting pot of cultures, styles and influences.
Buying Property in the Inner West
If you’re looking to buy a home or apartment in Sydney in 2015, the Inner West represents a good mix. Its growth in recent times has lead the charge in NSW, as homeowners look for greater options; from affordability to access and infrastructure.
But after two years of strong market performance, many believe the growth of the Inner West is starting to reach its upper limit.
Despite a slow market towards the end of November 2014, there is still no sign of Sydney’s property market slowing down. Already in 2015, Sydney property prices are up almost 7%. The Inner West continues to build on that growth, with a median house price of $1.24 million, unit median price of $663,500, and year-on-year growth of 12.5 per cent.
So what’s leading consumer confidence in Sydney’s Inner West in 2015?
1. Interest Rate Cuts Prompt Empty Nesters to Sell
Further interest rate cuts have gone a long way to keep buyer interest high. Assuming interest rate cuts keep house prices peaking, more empty nesters are expected to sell their homes to boost retirement savings.
2. Median House Prices Continue to Rise
The past two years in particular have seen overdue growth for Sydney’s property market. While it’s uncertain that boom-time figures will continue forever, experts forecast growth of seven to eight per cent in 2015 alone. This will take the median house price in Sydney to over $800,000 - an increase of $300,000 over a four-year period.
3. Demand Continues Despite the Cooler Months
Winter is a tricky time for the Australian property market; as properties on auction and clearance rates slow down in the cooler winter months. And yet in 2015, while clearance rates have taken a downturn as expected, economists are quick to point out that listings have in fact increased as temperatures drop.
4. Increasing Clearance Demand
The good news for vendors in Sydney continues, with a clearance rate of 82.2 per cent as at 2 June 2015. There is still an 8/10 chance of auctioning your property in Sydney.
5. Continued Interest from Sydney Property Investors
The good news is here for Sydney property investors, too. Investor activity in Sydney suburbs, especially in the Inner West and its surrounds, makes up 48 per cent of all investor activity.
6. Transport Continues to Attract Residents Far and Wide
With the light rail introduced from Leichhardt North to Dulwich Hill in 2014, the Inner West opened up to more transport options than ever before. The suburbs of the Inner West remain an attractive option for commuters looking to travel a short distance from the city.
7. Future Infrastructure Development Favours the Inner West
Over the next 25 years, Sydney needs to cater to an extra 1.12 million people - or 640,000 new homes to 2031. The Sydney Metropolitan Strategy has committed to increasing the number of homes in urban areas close to public transport, jobs and services. Roughly two-thirds of all new homes will be built 400-800m walking distance from a train line. With the focus on inner-city suburbs, one-third of this falls in the Inner West.
8. Increased Off-The-Plan Property Purchases
Younger couples and singles have consistently flocked to the Inner West in recent years. And with little sign of this trend slowing down, the question becomes where will we house them all? As baby boomers hold onto their nests, off-the-plan property purchases become an affordable and realistic entry point for many newcomers to the Inner West. A local to the area for some time, Conveyancer Alex Sapounas from CM Lawyers Marrickville explains, ‘the Inner West will continue to improve in desirability, because of it’s central location and relative affordability compared to the Inner North and Eastern Suburbs’. And for first-home buyers and property investors ‘looking for a long-term investment of more than ten years’, he reflects, ‘the Inner West will continue to evolve in desirability’.
9. Solid Growth Predicted Through 2015
The boom time is definitely not over yet. In most state capitals, Australian’s are experiencing record high house rents. And this growth shows little sign of slowing down, with economists predicting an 8-12 per cent growth in 2015.
10. Couples and Families Continue the Search for Inner-City Dwellings
The Inner West is still a favourable living choice for single couples and couples with children - the fastest growing households in Sydney. The market continues to swell, however, as baby boomers sit tight on the bulk of stand-alone homes available across the Inner West. Looking ahead, if interest rates do continue to fall, the opportunity exists for homeowners to make the plunge and downsize; freeing up space for first home buyers and their families.
The Inner West Property Market at a Glance