What first home buyers 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.

"Generally, first home buyers are looking to enter the property market at the affordable end of the market."

"This will mean making certain sacrifices in regard to location or size and condition of improvements. Despite this, there are still fundamentals that will attract these buyers," the valuation firm said.

Within inner-city Sydney, owner-occupiers at the cheaper end of the market (generally being sub $1 million) are looking for proximity to lifestyle amenities.

This market purchases one and two- bedroom units, often without parking in older to semi-modern complexes in average condition.

This demographic primarily comprises 20- and 30-something, young professional couples and singles who are happy to pay a premium to be within close proximity of the CBD in order to reduce their commute time and improve their work life balance.

"In turn, they often seek proximity to public spaces such as parks, for example Moore Park, Prince Alfred Park or Rushcutters Bay Park, and social and dining hubs such as Surry Hills or Potts Point," the valuation firm said. 

Since many go without cars, proximity to public transport is essential, whether that is a major thoroughfare such as South Dowling Street or Oxford Street for frequent bus services, or a train station for access to the CBD and surrounds such as Redfern, Kings Cross or Central.

"The main fundamental for first home buyers in Western Sydney is the same as for upgraders and prestige buyers - location, location, location!" the valuation firm stated. 

Whilst that won’t necessarily mean close proximity to the CBD, it will still mean proximity to services and transport.

The type of asset that first home buyers will be looking at will be the major difference.

First home buyers in Western Sydney these days are generally buying property sub-$650,000.

"For that sort of money, you are buying a modern two- bedroom unit in a north-western suburb such as Castle Hill, or a detached house in the outer west suburbs such as Blacktown or Penrith.

"Being close to motorways and rail, but not too close, is key for commuting western Sydney residents," the valuation firm said. 

Affordable property with close proximity to major services such as shopping and transport links for the sub- $650,000 price range will generally be medium to high density real estate.

An example is the recent sale of a modern two-bedroom, two-bathroom unit at 153/23 Crane Road, Castle Hill (pictured below) for $650,000.

This unit is within walking distance of Castle Towers shopping centre and the newly constructed North West Metro station.

Given the cost of detached dwellings in the local area, units such as these are popular with first home buyers due to having the right balance of proximity to key services and price point.

For slightly less at $635,000, first home buyers can purchase a modern three-bedroom, two-bathroom terrace in the Thornton Estate in Penrith.

This property is within close proximity of Penrith train station and shopping precinct.

The report suggest for first home buyers with a little more to spend and with the need or want for a house on a good size block of land, there are opportunities available in good suburbs in the middle ring of Sydney.

Peakhurst is located around 20 kilometres to the south-west of the CBD and is close to two train lines and the M5 motorway.

The downturn in prices over the past two years has made Peakhurst an attractive option for those looking to buy a property with a budget of under $1 million.

A recent deceased estate sale at 11 Clarendon Road (pictured below), located within walking distance of Riverwood railway station and shopping strip, saw a two level, 1960s brick and hardiplank dwelling with four bedrooms, two bathrooms and double carport on 531 square metres of land.

The property was in very basic condition with some upgrades or renovations required, however provided good entry level value at $825,000.