Amid falling Sydney property prices, owners of three-bedroom apartments in Potts Point have reason to celebrate, thanks to very high growth and ongoing demand.
Here’s why three-bedroom apartments are so popular in Potts Point and what the good news is for owners.
High growth for Potts Point’s three-bedroom apartments
Data from realestate.com.au from January 2019 showed that Potts Point had the fifth-highest growth rate in the country for three-bedroom units, with excellent annual growth of 19.4%. Buyers who make a move now will pay a fairly high price, with the median sitting at $4.85 million in January, but they’ll reap some pretty incredible benefits as time goes on.
As the year got underway these stellar figures dropped ever so slightly – with growth of 14.9% at the end of February.
These stats are just further proof of why Potts Point is always a smart investment – even in a market experiencing drops left and right, these three-bedroom apartments are holding firm and will continue to do so in the future.
Why are three-bed units so popular in Potts Point?
So what’s behind this stable position for Potts Point’s larger apartments? Beyond the excellent amenities and city-side locale that draw buyers of all types to the area, a big part of the reason is standard supply and demand. Only 5.3% of homes here have three bedrooms, so the demand far outweighs the supply and prices are kept buoyant.
Over the past 10 years, I’ve also noticed a shift in attitudes from different buyer types. It’s no longer seen as essential to own a freestanding house or to move out to the suburbs if you need a bit of extra room, so buyers are increasingly happy to find an inner-city place with a larger floor plan to enjoy the wonders of our great city.
Importantly, apartments aren’t seen as a second choice instead of a house – a lot of my buyers prefer the convenience of an apartment right in the centre of one of Sydney’s best suburbs over a bigger home further from the action.
Families buying apartments in Potts Point
The biggest shift in these attitudes has been from Sydney’s young families. In the past, it was pretty common for new parents to prioritise a backyard, an extra living room and room to play outside, but times are really changing. People are realising that it’s possible to have everything you need with a slightly smaller floor plan and, importantly, that city living is not detrimental to kids’ happiness. The excellent parks and schools of Potts Point and surrounds are great pros for buyers thinking of a family lifestyle.
I also notice that a lot of families are drawn to the ease of maintaining an apartment over a bigger house. Coupled with a strong desire to stay in the area they loved for years pre-kids, it’s a pretty easy choice for many.
Large apartments popular with downsizers
Downsizers have been the driving force behind sales of large three-bedroom apartments in Sydney’s inner suburbs for a long time and that shows no signs of slowing. The cost and hassle of maintaining a large house isn’t justifiable for many couples who no longer have kids at home, but a three-bedroom apartment is perfect for their day-to-day needs as well as having enough space for visiting family members.
Potts Point, in particular, is a popular choice because residents don’t usually need a car as everything they need is just a short walk away. Off-street parking is still possible, as are buildings with lifts and properties with no internal stairs. Then the kicker is, of course, the potential for stunning views.