Sydney’s emerging hot spots

Author: Stephen Lacey
Date: May 23, 2007
Publication: Sydney Morning Herald

When it comes to capital growth, it's where you live that counts. We findthe emerging "location" hot spots.

People are prepared to buy a house that's falling down around their ears,just so long as it's in the right place.

We all know what the ideal is - a harbour waterfront or a house across theroad from the beach, surrounded by the best coffee shops, libraries andswimming pools, and parks nearby for the children and pets to play.

And, of course, in a perfect world all of this would have to either be aneasy walk to the office - or about five minutes from a train station.

Even Sydney's multimillionaires don't seem to have it all - those in a $10million Mosman waterfront might have to still battle Harbour Bridge trafficon the way to the office - but Sydney's best houses have at least some ofthe above.

Where, though, can Sydneysiders enjoy at least some of these "location" joysfor a fraction of the price? We ask the experts about the hot locationsuburbs of tomorrow.

WATER

Australian Property Monitors operations manager Michael McNamara says Marrickville is one of the waterfront spots towatch. Don't laugh. There have been several million-dollar sales over thepast two months with homes featuring sensational views of the Cooks River -such as 52 Thornley Street, which sold for $1,185,000 last Friday throughRaine & Horne Marrickville. If you're interested in something with a similarview, try few doors away - 46 Thornley Street is currently three flats buteasily converted to a house. It's up for June 23 auction with expectationsof more than $730,000. Phone Elders Stanmore, 0418 402 992.

McNamara includes Collaroy as another emerging hot spot. "It haslovely big houses and a classic northern beaches seaside, with room forpotential capital growth." And Yowie Bay : "It's a nice little pocket tuckedaway in the Sutherland Shire, where if you enjoy boating and fishing you'll appreciate the access to the water."

He says Picnic Point is also a good valuewaterside proposition, "probably the most affordable of all Sydney'sriverside suburbs, with a median price of about $500,000. You can be assuredof long-term growth."

Adviser Edge Investment Research property director Louis Christophercrunched RP Data's figures and saysis also worth a look, especially asit's accessible by RiverCat. Water views of Canada Bay and Hen and ChickenBay can be had from several properties, including those on Preston andMcGrath avenues and James Street. Dee Why is another of Christopher's hotspots - not just because it's close to the beach but also for the lifestyleand amenities it has to offer. "It was once a run-down area, but it's had arecent upgrade," he says. "This has encouraged housing demand, particularlyclose to the beach."

LIFESTYLE

We all know the popular lifestyle suburbs - places such as Paddington orDouble Bay, where residents have access to great restaurants, cafes andboutiques. But what about the emerging - that is, affordable - alternatives?

As well as Dee Why (which has a strip of groovy cafes along its esplanade),Christopher says Cammeray is one to watch. "Cammeray offers aunique blend of cafes, pubs and restaurants and also benefits from itsproximity to the CBD." And with average annual growth of 11.1 per cent, it'sone of Sydney's best-performing suburbs.

Christopher also likes Maroubra as a lifestyle destination, especiallywith its beach subculture. It has a median house price of more than $900,000but, he says, there's still money to be made there.

McNamara says Leichhardt remains a strong performing lifestyle suburb."It's still a highly sought-after place for first-home buyers," he says (seecase study below).

He also likes Five Dock, not just for the water-hugging attributes mentionedabove. "It has a wonderful Italian atmosphere," he says. "You'll find manytraditional butchers, grocers and delis; it's a lovely place to shop."

And Crows Nest rates a mention. "Lotsof very funky places to eat and drink and lots of homeware shops."

You'll be a regular at the homeware shops if you buy this "builders special"at 216 West Street. The heritage-listed, three-bedroom Victorian terrace isunliveable but about $200,000 will put it right. It's going to auction onJune 13 and bidding is expected to be about $550,000, making it Crows Nest'scheapest terrace by a long shot. Phone LJ Hooker Crows Nest, 9439 1200.

AMENITIES

It's handy to have schools, medical facilities and shopping centres close bybecause it ensures capital growth when it comes time to sell - Christophersays Alexandria is an emerging suburb when it comesto amenities and more is on the way. "The suburb is slowly transformingitself from an old industrial area to a Paddington of the new millennium,"he says.

He also likes Parramatta, which is benefiting from the growth inits CBD, as well as ongoing public works in the area. North Parramatta  rates a mention, too. "With several good schools nearby - such as The Kings Schooland Tara - it has become a destination suburb for parents," Christophersays. Check the cute three-bedroom Californian bungalow at 39 GilbertStreet. It was passed in at auction last weekend and the asking price is$490,000. Phone Elders Parramatta, 0411 711 172.

McNamara says, Rhodes is emerging as a suburb with many amenities,especially since the advent of the Rhodes Waterside development and theadjacent shopping complex including Ikea. "Concord Hospital is also close byand so is the Homebush Bay precinct," he says.

Hornsby has good amenities. "It has a bigWestfield shopping centre, a hospital and access to good schools on theNorth Shore."

TRANSPORT

Christopher says if the proposed light rail expansion goes ahead, Burwood will become one of the new stops."This will be a huge benefit to the suburb and provide its residents with athird method of getting into the city, outside the bus route and therailway." This is reflected in the house prices, with the median being$750,000 and healthy average annual growth of 10.5 per cent.

"And Epping is benefiting from the Lane Cove Tunnel,which has reduced the travel times to and from the CBD, not to mention a cutin the street traffic," he says. Epping's median house price is $710,000,with average annual growth at a respectable 9.1 per cent. Epping FirstNational will auction a three-bedroom, 1950s brick bungalow at 32Carlingford Road on May 31. It's on a busy road but the home is on 749 sq mand just minutes to the railway station. The price guide is $650,000-plus.Phone 9868 8818.

McNamara looks a little closer to the city for his emerging "transportsuburbs". He says Erskineville is one of the best, with two trainstations (Newtown is nearby) and buses all within the inner-west pocket.You'll be only minutes from the train station at the unrenovated 62 UnionStree. Even the agent admits it's "not for the faint-hearted", which isreflected in the price guide of $400,000-plus.

And he says Petersham is Leichhardt'sforgotten cousin. "There are beautiful streets of charming Victorianterraces and Edwardian cottages with access to a train station and busroutes."

Ray White Newtown is auctioning a first-home buyer's special at 2 JarvieAvenue on June 7. The two-bedroom semi is in a quiet street and close totransport and shops. The price guide is $500,000. Phone 9516 1800.

McNamara also likes Artarmon: "It's leafy but just a 15-minutetrain trip to the city." No doubt the Lane Cove Tunnel has also improvedtraffic flow when exiting the Warringah Freeway. There is a problem: housesare pretty thin on the ground in the area as units have sprung up.

PARKS, OPEN SPACE

With a new baby boom well under way, more and more people will be seekingplaces with access to parks and open spaces for their children to play.Christopher says they should consider North Richmond. "There's plenty ofparks and it's close to the Blue Mountains," he says. "This suburb will alsobenefit from the reduced transportation time to the CBD, following theopening of the Lane Cove Tunnel and the orbital link opened last year." If 4Pecks Road, North Richmond isn't Sydney's cheapest house, it would have tobe close. The tidy three-bedder is going for $289,000. Phone Starr PartnersNorth Richmond, 4571 3000.

Christopher says St Ives has been a forgotten upperNorth Shore suburb until recent times, "yet it offers space, privacy andplenty of parks". Bottom of the market there is about $700,000-plus. You canpick up one of the suburb's least-expensive homes at 37 Greville Avenue. Thethree-bedroom house is on the market for $695,000. Phone Century 21 CordeauMarshall, 9488 8588.

McNamara likes Clovelly, too. "It's close to Centennial Park,plus you've got the beach."

Another favourite is Concord: "It has the greatest square metreage of openspace of any of the Sydney local government areas. There are golf courses,foreshore reserves and parks."

Up for auction on May 26 is 11 Brewer Street, a full-brick three-bedder thatneeds work with a price guide of about $700,000.

CAFE CULTURE

The excellent coffee and pastries sealed the deal for Ariella Ryner, 32, andher partner Joshua Gray, 30 (pictured), who recently bought a two-bedroomsemi in Macauley Street, Leichhardt.

"We wanted to live close to the restaurants and cafes and all the nicethings Leichhardt has," Ryner says. "Our favourite coffee and cake shop,Mezzapica, is just up the road and we're a few hundred metres from NortonStreet."

After the two-storey home was passed in at auction, the couple bought itthrough Sarah Lorden Real Estate, Balmain. They paid $612,000.

"We probably ended up spending a bit more to live in Leichhardt but it wasworth it for the lifestyle," Ryner says. "We could have bought a biggerhouse somewhere else for the same price but I'd feel isolated."

They had been renting a home in Annandale before making the purchase. Theyalso considered buying in Newtown, attracted to its cafe culture. But Ryner,who grew up in Switzerland, preferred Leichhardt's "Euro-ambience" and theEuropean produce available.

The decision has been mainly a lifestyle choice but Ryner says she feelssecure knowing that capital growth will be strong.