St Ives the family-friendly $1 million Sydney residential prospect: John McGrath

Sydney is leading a national property market recovery which will stimulate surrounding areas, according to John McGrath in his Autumn market report.

McGrath says the primary trends Sydney has seen over the past few months have been an increase in investors, particularly self-managed super funds, fewer first home buyers and the slow return of downsizers and retirees.

McGrath is predicting strong competition in the mid-high range market this year, compared to last year when there was more activity in the sub-$1 million market. Clearance rates are up and more people are attending auctions suggesting they just want to “get on with it”.

A retreat of first-home buyers is giving investors more room in the lower end of the market while the upper end of the market is being driven by downsizers and “the Chinese aristocracy”.

He says as share prices rise so too will personal wealth, meaning many downsizers who put off moving post-GFC may now but up.

Offshore buyers are tipped to increase with the introduction of the ‘significant investor visa’, which enables fast-tracked residency for those who invest more than $5M in business, government bonds or managed funds, “will no doubt have a flow-on effect to harbourside/beachside property and new apartments”.

He says new capital spending will be another boost for the broader Sydney market, with projects such as the Inner West Light Rail extension and the North West Rail Link likely to stimulate price growth and yields.

His top tips for Sydney include Erskineville and surrounds, St Ives and Forestville.

He says Erskineville is “where all the smart money that can no longer afford Surry Hills is going”. The university and the hospital drive strong rental demand in the area.

He recommends St Ives for purchasing a family home with $1 million netting buyers what they could normally only buy for $1.6 million in trendier suburbs.

“Believe me when I say that it’s hard to go past this area for great family living with its own village,” McGrath writes.

In St Ives, a four-bedroom house (pictured below) on 1,144 square metres has been listed for sale at more than $900,000. The single-storey home last traded for $867,000 in 2009.

And a four-bedroom single storey house (pictured below) on 923 square metres which last traded $630,000 in 2006 has been listed for more than $900,000.

He says although Forestville is a forgotten suburb it ticks all the boxes for great lifestyle and capital growth.