What upgraders are looking for in Sydney: HTW residential

Whilst there are obvious fundamentals that appeal to all sectors of the property market, many aspects that appeal to first home buyers may not be as important to upgraders or prestige end buyers, according to the latest Herron Todd White (HTW) residential report. 

The report notes along the coast it may be proximity to the beach or harbour, whereas on the fringes it might be the size of the block of land or the level of accommodation.

Upgraders are generally looking to upsize due to growing family needs or looking to relocate to something more modern or better located to the services and amenities that appeal to them.

Within inner city Sydney, owner-occupiers deciding to upgrade generally spend $1 million to $3 million and are looking for larger apartments or terrace housing within the city fringe areas, preferably with some outdoor space for family or pets. 

Areas such as Paddington, Redfern and Glebe are common choices for this demographic, comprising of professional 30- to 40-something couples often with one or more children.

Aside from the previously mentioned benefits of inner city living, this demographic often looks for properties affording car accommodation for the convenience of occasional car use, however within village settings such as the previously mentioned areas, most local shops, schools and amenities are within walking distance.

The inner west region of Sydney is a large and diverse area which ranges from the inner suburbs of Newtown, Glebe and Balmain and stretches as far as Strathfield which is located approximately 15 kilometres from the CBD.

Some of the middle ring suburbs of the inner west include Annandale, Leichhardt and Lilyfield which comprise a range of property styles and are located approximately five to ten kilometres from the CBD.

"Most upgraders in this area would be looking at either attached style housing or freestanding properties with a price tag of anywhere from $1 million to $2 million depending on the usual property attributes such as location, size of dwelling and land, condition, features, parking provisions, views or aspect and natural light," the valuation firm commented. 

More substantial properties in this region easily exceed the $2 million dollar price point, however there is plenty of choice for upgraders in this range.

This market segment is potentially upgrading from a smaller style unit and needs more space for a growing family, however still wants to be close to the city and have the benefits of transport, parks and the café lifestyle.

In addition to the property attributes already mentioned, these buyers tend to focus on proximity to transport (railway, light rail and bus routes), schools, shopping, cafes and parks.

This particular market segment is generally aged from 30 years old and above.

A terrace at 15 Justin Street, Lilyfield (pictured below) which sold in May for $1.415 million was advertised with the following features highlighted:

"Set on a generous block complete with child- friendly level lawns, it features an abundance of outdoor entertaining space, nestled in a quiet street just 500 metres walk to Lilyfield light rail station.

"Nestled in a quiet yet superbly central location, offering easy access to the CBD only five kilometres away, from here you’re only moments from Rozelle’s cosmopolitan café/dining precinct and harbour foreshore parks."

In the Northern Beaches, it is no surprise that upsizers require additional space for their growing families, so the size of their family and their financial situation will ultimately dictate the options.

Location will generally take priority over quality of finishes and land component, as they are generally well established in their local communities and wish to remain as close to their current local facilities as possible.

The upsizer market is typically within the $1.5 million to $3 million range, depending largely on the location, size and quality of accommodation.

"It’s genuinely a good time in the market to upsize, as the discount on the property you are acquiring is generally greater than the discount on your existing property.

"We have seen a few recent examples of young families in the $900,000 to $1.2 million range looking to upgrade from their current two or three bedroom strata properties in Dee Why into larger, family friendly four-bedroom homes in Narraweena and Cromer," the valuation firm said. 

A recent example includes 42 Carcoola Road, Cromer (pictured below) which sold for $1.69 million.

The property comprises a circa 1980s, renovated, two storey, four-bedroom, three-bedroom dwelling with in ground pool on 610 square metres, marketed and suited towards a growing family.

Another recent example is 9 Siobhan Place, Mona Vale (pictured below). 

The property sold for $2.006 million in June 2019 (previously sold for $2.101 million in April 2017).

The property comprises a renovated, two storey, four-bedroom, two-bathroom home with an outbuilding on 696 square metres of land.

The home is well-proportioned for an extended family and moments from Mona Vale village.

"We are also seeing an Influx of properties catering for multi-generational living (where more than one generation of adults occupies the same residence), whether that be via an internal self-contained or in-law style retreat or a dual-occupancy style holding.

"These are becoming a popular way to cost- effectively upsize your property by co-living with extended family." 

A recent example is 50 Maxwell Street, Mona Vale (pictured below), having received strong interest from extended families.

The property sold for $2.22 million in June 2019 (slightly above the $2.2 million price guide).

The property comprises a circa 1950s, renovated, four-bedroom, two-bathroom dwelling with a detached two-bedroom, one-bathroom granny flat.