We take a look into our crystal ball to see what trends we expect to see in the Potts Point property market in 2020, based on the year that’s been and current market conditions.
A lot happened in the property market in 2019, but despite the market fluctuations, Potts Point has remained one of Sydney’s strongest performing suburbs. It is even the fourth highest performing suburb in NSW with its median sales price for houses currently at $4.8M. So, what will the new year bring?
Potts Point is one of Sydney’s most popular hot spots for downsizers wanting to enjoy cosmopolitan living and a low maintenance lifestyle. It’s no surprise, given the area’s easy access to the city, combined with a host of great cafes, restaurants and bars, make it the perfect place to enjoy life once younger family members have flown the nest. Downsizers love Potts Point’s high-end two and three-bedroom units and penthouses and frequently seek city or harbour views. Because there’s not enough stock for this discerning demographics, sellers can command strong prices.
High demand for terraces
In recent years we’ve seen huge demand for Potts Point terraces, which feature many of the benefits of a freestanding house, such as privacy and space, but can be lower maintenance. Terraces typically have architectural appeal and charm and sometimes heritage value too. And they’re rare – as a group, semi-detached, row or terrace houses and townhouses only make up 10% of the housing stock in Potts Point, according to Census figures. The fact that they’re in such short supply in Potts Point makes demand even stronger. For those who are having a hard time finding their dream terrace in Potts Point, I often suggest they also consider Elizabeth Bay, Darlinghurst, Rushcutters Bay and Woolloomooloo, which may have more stock and larger sized terraces.
With climate concerns on everyone’s minds thanks to the recent bushfires and drought, the already strong demand for more sustainable homes is likely to grow even stronger. In Potts Point, we’re seeing buyers actively seeking out units and homes with sustainable features and the new buildings in the area are being designed with green considerations in mind. High energy prices mean renewable energy is sought after, as are solar panels, the use of passive heating and cooling systems, smart home sustainable features, and even rooftop community gardens.
Enhanced residential appeal
Potts Point has well and truly shaken off its reputation as a late-night, red-light district with changes from the lockout laws and new developments making it even more appealing for residential living. Many new luxury developments have sprung up in the area and surround as a result, including Omnia Potts Point, Hensley Potts Point and IDA Potts Point. There are so many amazing local residents, as well as great bakeries, pet-friendly buildings, unique homewares and design stores and gorgeous green spaces. This well-established trend will continue into 2020 and beyond.
More first home buyers and investors
A variety of factors, including more government assistance for first home buyers and multiple interest rate cuts by the RBA, are luring more first home buyers and investors to the market. Lending conditions have also loosened again, making it easier for both investors and first home buyers to get funding from the banks. Potts Point has a wide range of price points with something for every budget – from bedsit studios through to world-class penthouse apartments.
For anyone looking to get onto the property ladder, expand their property portfolio or downsize their home, the suburb is rich in appeal. Its blue-chip status and high-quality fundamentals ensure strong capital growth long-term regardless of market fluctuations.