What will Sydney’s eastern suburbs look like in 2050?
Sydney’s future has been in the spotlight lately. Population growth (our city is expected to be home to more than nine million people by 2025) and new infrastructure – the Airport Motorway, the M8, a second airport at Badgerys Creek, and the extension of the Sydney Metro – have made our city’s forward planning front page news.
But nothing about Sydney’s direction gets people talking like the issue of housing, and the NSW Government’s new Housing SEPP and Transport Oriented Development Program have become the focus of heated debate.
But with Sydney’s East largely left out of the rezonings and changes, what does our future look like? We take a look at the property trends we’re likely to see in Sydney’s eastern suburbs.
1. Downsizer stock to remain in high demand
Although there have been a handful of new developments aimed at downsizers and their specific requirements, supply in this segment simply cannot keep up with demand. But today’s downsizers don’t just expect convenience, they often want space, privacy and even a bit of luxury too.
This has led to massive price growth for prestige apartments and penthouses in recent years.
An excellent example of the type of property downsizers are looking for is the Billyard Ave development. We broke the suburb record for a single apartment sale when we sold the Billyard Ave penthouse last year demonstrating the appetite buyers have for this type of property (we also sold the sub-penthouse for around $21 million).
2. Knockdown rebuilds and infill development to increase
With little to no vacant land available in Sydney’s East, developers and homeowners need to think outside the box when it comes to building something new.
We see many buyers willing to look beyond the home that may exist now. This is leading to many large-scale renovations and even complete “knockdown rebuilds”. This is particularly happening in the Eastern Beaches with its sought after lifestyle and ocean views.
Another trend we expect to see more or is infill development (otherwise known as consolidation). This happens when housing is built on underutilised land within existing urban areas, such as here in Sydney’s East. This could be a former parking lot, military base, railway yards or even a hospital.
A great example is the redevelopment of the old Prince Henry Hospital at Little Bay and, decades before that, the Royal Women’s Hospital at Paddington.
3. Commercial to residential trend to continue
This is by no means a new trend: it started in earnest after Sydney hosted the Olympics in 2000. However, we expect more and more buildings to be rezoned from commercial to residential as we move forward.
There are so many examples of this happening already across Sydney’s Eastern Suburbs. This includes backpackers’ hostels being converted to large family homes, hotels becoming apartments and industrial sites becoming warehouse-style living. We’ve also seen electricity substations, churches, offices, shops and restaurants being turned into residential accommodation.
We’ve seen almost every type of property reinvented as housing and, with rising demand and no free land to build on, we expect that trend to continue.
A great case study of what to expect is the Riley Apartments: once a prominent Eastern Suburbs car dealership and now a fantastic mixed use commercial and residential development.
4. Amalgamations of apartments to become more popular
As construction costs stabilise, we expect to see more buyers seeking a large apartment considering amalgamating two smaller apartments to design their own spacious residence.
Sometimes in a new, off-the-plan development a buyer will request this, and get the developer to change the layout before a home is built. But we also see it in older established buildings, where large apartments may be scarce.
An example is the Horizon Building in Darlinghurst, where we sold apartment 3403 two years ago. It was originally two apartments which were joined together to create a fantastic three-bedroom, three bathroom residence with approximately 225 sqm of living area.
5. Developments around transport hubs and centres to grow
While the Eastern Suburbs has been notably absent from the recent State government planning changes, we still expect to see development continue in existing transport hubs, as it has for many years.
Stations along the eastern suburbs train line, including Bondi Junction, Edgecliff and Kings Cross, are examples of transport hubs that have always attracted waves of new residential development. Their neighbouring “sister” suburbs – like Darling Point, Potts Point, or Waverley – have also seen new residences built, partly due to their close proximity to this train line.
This phenomenon has played out more recently in suburbs along the tram line at Kingsford, Randwick and Kensington, with steep price rises in apartments and houses over the past five years.
6. Affordability to remain on the agenda
Lack of affordable properties has been a genuine issue in Sydney for some time now, and our area has been one of the most affected. With a great location, excellent lifestyle, but limited supply, and huge demand to live here in Sydney’s Eastern Suburbs, it’s little wonder that affordability is a growing concern.
Housing affordability was a focus of both parties in the lead up to the last Federal election, and housing a real focus of the last budget, we believe it will be even more so in future.
With the rising cost of living and interest rates starting to bite, it’s a complex issue that is not going to be solved any time soon. And it’s an issue that’s particularly impacting first time buyers, families and renters in the Eastern Suburbs.
Want more?
If you’re looking to buy or sell in Potts Point or Elizabeth Bay, contact my team today.
