Gordon, Killara and Pymble appeal to wide range of buyers: Savills

Properties in Gordon, Killara and Pymble are appealing to a wide range of buyers, according to Savills’ latest report.

It noted across the suburbs, the median house price in January 2017 was $2.3 million, over twice the average for Greater Sydney.

It advised there is a premium for being closer to the city and in close proximity to a train station.

“Killara is the most expensive with an average house price of over $2.5 million compared to West Pymble at $1.7 million," the report advised.

“House prices have experienced significant growth over the past decade, increasing by 103%, in line with the Sydney average.

“Across the suburbs, West Pymble and Pymble experienced the strongest growth with house prices increasing 113%, reducing the value gap with suburbs closer to the city.

“Strong growth has continued over the past 12 months, driven by a lack of supply across the area, with house prices across the five suburbs increasing by 13%, outperforming the Sydney average.

“Units in the area had a median value of $970,000 in January 2017, less of a premium than houses when compared to Sydney at just one third more expensive.

“Similarly to house prices, apartment values vary in price along the train line. Pymble is roughly 10% cheaper than those in Killara and Gordon.

“Growth in unit prices has been slightly more subdued than houses with an increase of 83% over the past decade.

“However, much like houses, price rises over the past year have outperformed the Sydney average with an increase of 11%,” the report stated.

Private renters are more frequent in medium density housing areas according to Savills head of research Sophie Chick.

“The proportion of private renters varies significantly across the area,” Chick says.

“Unsurprisingly, there is a higher concentration in the areas with more medium density housing.

“Gordon has the highest proportion with 22% of the residents private renting, followed by Killara with 18%.

“Conversely, just 9% of residents in West Pymble are private renters.

“Across the suburbs, the median weekly rental value was $1,200 for a house and $700 for a unit in January 2017, equating to average yields of 2.8% and 3.7% respectively,” she commented.

International buyers are an important source of demand Savills says.

“Across the five suburbs, families with children make up over half the residents, accounting for 57% compared to an average of 45% across Sydney.

“International buyers are an important source of demand for the housing market across Sydney as both owner occupiers and investors.

“Of the five suburbs, East Killara has the highest proportion of residents born overseas, accounting for 45% of the population with a particular dominance of residents from China and Hong Kong.

“Accessibility to employment locations is high priority for many house hunters.

“Residents across the area work in a number of locations, reflecting the suburbs' connectivity to major employment hubs.

“The largest employment industry for people living in the five suburbs is the professional, scientific and technology sector accounting for 18% of employees compared to an average of 10% across Sydney.

“This industry is the fastest growing in Sydney meaning the area is well placed to draw on the newly created wealth in these industries.”

Qualities that attract residents to these areas are expected to grow Savills comments.

“It is important to assess the outlook for the area in the context of the Sydney market,” the report advised.

“Factors such as low interest rates, population growth and infrastructure investment point to a positive economic outlook for NSW over the next five years.

“These factors are expected to continue to support demand for housing, particularly in Sydney.

“However, it is likely the rate of growth will slow, given the affordability pressures and the regulatory measures implemented to slow the amount of bank lending to investors.

“Across all five suburbs, the good primary and secondary schools, connectivity, high quality housing stock and open space available are expected to continue to appeal to families looking for their long-term home regardless of market conditions.

“The development of apartments and townhouses along the Pacific Highway provides a wider range of housing options, which is likely to attract a broader demographic of buyers including first home buyers, downsizers and investors.”

For more information go to Savills' home page.