Price and proximity make Eastlakes a hotspot

The Eastlakes apartment market, located six kilometres from the Sydney CBD and just a 15-minute drive from Sydney Domestic Airport, has been identified by RP Data as one Australia’s best-value suburbs.

Apartments make up more than two-thirds of the market (69%), with the average median price of $376,500 significantly more affordable than nearby Maroubra ($570,000), Kensington ($540,000) and Botany Bay ($500,000).

Sales prices for Eastlakes units have increased by 8% over the past year, according to RP Data, compared to more modest gains in Maroubra and a small drop in values in Kensington.

While Kensington and neighbouring Zetland have seen significant new apartment developments, such as Meriton’s Victoria Square project, there are no new apartment developments currently under way in Eastlakes.

Richard Movsessian from Century21 Coastline Properties is currently selling a 2-bedroom ground floor apartment at 17 Mascot Drive (below) at an advertised price of $397,000.

The property is advertised as being close to Eastlake's shopping centre, schools, cafes and transport to the CBD.

He tells Property Observer there was a lot of investor interest in Eastlakes just prior to the end of the financial year, but it had recently slowed down.

“First home buyers are back in the market. They are a bit more patient and are only buying a property if it is exactly what they want and [it] ticks every box,” he says.

“Properties priced fairly are selling well.

“Houses are selling slightly above the reserve price at auction while apartments are selling slightly under. There’s more competition for houses than for units,” he says.

Movsessian says the attractions of the suburb are its location – close to the University of NSW and the city – and its multicultural make-up.

According to RP Data, nearly 60% of Eastlake residents were born outside Australia.

Tass Evgeniou from Laing & Simmons Kingsford is selling a two-bedroom unit at 6/6 Barber Avenue (below) aimed at first home buyers, renovators and investors, with a price tag of $370,000-plus.

He describes the Eastlakes market as very strong, and a good starting point for the eastern suburbs area.

“It’s a good location for investors and first home buyers because prices are more reasonable and still affordable.

“The price range and yields are also attractive,” he says.

Eastlakes is serviced by bus routes providing relatively easy access to the CBD while the Eastern Distributor motorway connects private vehicles to the city.

According to Evgeniou, apartments are selling close to the asking price – with “a little bit of negotiation”.

Eastlakes is already popular with investors, boasting an extremely strong rental market with two-thirds of units rented – more than the rate across Sydney (63%).

According to RP Data, many of the low-set brick complexes built more than 20 years ago which dominate the market present internal renovation potential, which can add value.

“They are also appealing due to the fact they have limited on-site amenity, which typically results in lower body corporate fees,” the RP Data/St George National Hotspots report says.

Phil Manning, senior property adviser at valuer WBP, says Eastlakes’ growth outlook is positive and on par with other suburbs in the region.

Mr Manning says a key attribute is its close proximity to parks and recreational facilities, making it popular with young families.

“A positive driver for Eastlake is the developing ‘food’ precinct in nearby Alexandria, which will provide attractive amenity for the local area,” he says.

“However, the finite number of unit housing in Eastlake could prove an inhibiting factor for the suburb in future as growing affordability issues direct people into smaller, more affordable dwellings. However, this is likely to be a positive for growth in existing unit stock.”

Besides the location and transport benefits, Mr Manning says Eastlakes also offers access to primary and secondary schools both in the suburb and surrounding areas.

According to the RP Data/St.George report, the most desirable areas are likely to be near public transport and shopping amenities.

“Complexes located adjacent to the large parklands are also likely to experience stronger demand,” the report says.