What buyers want in Sydney versus Melbourne: RealestateVIEW

For investors buying in Melbourne and Sydney, the dynamics can be quite different, and it's worth considering what other buyers are interested in that may drive growth in the future, and competition right now.

The infographics below, provided by realestateVIEW, are based on a national survey conducted in August on nearly 10,000 buyers.

Petra Sprekos, general manager for RealestateVIEW, said that the biggest difference is that Melburnians want to live closer to the city for lifestyle benefits, while Sydneysiders are happier to live further out.

"This may have a lot to do with the communities in Sydney being well set up with ‘city’ like amenities - a lot of people in Sydney live and work in or around the area they live in. Our research showed people in Sydney were searching for properties at least 20km from the CBD but in truth, for Sydney this is actually classified close to the city whereas in Melbourne it’s classified as outer suburbs," said Sprekos.

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Despite the differences, what is also striking are the similarities.

"“I think there are a lot of commonalities in both cities. Location and price are key for buyers from both cities –capital growth is also up there. Sydneysiders do place more value on outdoor space, but that’s probably because it’s easier for them to get this in the outer areas," Sprekos continued.

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Investors should take note of the top suburbs, Sprekos urged.

"Investors can take note of the most searched suburbs and use these areas as a starting point to research values and trends over time – the fact that these areas are the most searched suggests current demand is strong, but they would to drill down further into historical sales and rental yields before deciding if it’s a good investment," she said.

"It’s also worth bearing the top ranked location and property features when determining investment potential – they’re a great indication of what matters to buyers which ultimately has some influence on capital growth."

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Overall, she said, be aware that the suburbs in demand are usually so because they offer the most value. At the end of the day, for every investor, it needs to be at the right price.

"If price is not a match, people tend to move further out – this is what we are seeing. But remember there is always a property to find in any area, whether the suburb is ‘hot’ or out of your price range – it’s all about keeping your eyes open for an opportunity that could be unique to the area," she said.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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