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Prestige property’s growth potential just keeps on rising

Date Posted: Apr, 2017

By Rich Harvey, CEO, propertybuyer.com.au

Where are you looking for capital gains in Sydney? The prestige property market might not be your first thought, but areas like the Lower North Shore and the Eastern Suburbs prove time and time again that even premium real estate will continue to grow in value.

In fact, over the last 20 years, CoreLogic research shows that luxury real estate offers some of the best capital growth in the city. Here's what you're missing out on.

Prestige property growth since 1986

CoreLogic put together value growth in local council areas between 1986 and 2016, and some of the best performers are also some of the most sought-after suburbs in the country. For example, in the top 20 suburbs you'll find Waverley, with value increases of 9.5 per cent every year for the last 20 years.

Prestige property is always going to be in high demand. Prestige property is always going to be in high demand.

Remember, this isn't just Waverley the suburb – it's the local government area. That includes property in Bondi, Dover Heights, and Bronte – a wide range of Eastern Suburbs. It means that even though Sydney has a higher proportion of suburbs priced over a million dollars than anywhere else in the country, these areas still make for excellent property investment. There's a reason for that.

Prestige property is a limited resource

Sydney's prestige property suburbs are always going to be in demand. There is limited space on Sydney's waterfront, and it becomes even more scarce when you cross-reference it with good schools, proximity to shopping centres and public transport.

Sydney's prestige property suburbs are always going to be in demand.

Areas like the Eastern Suburbs and the North Shore have a combination of these factors that you just can't find anywhere else, and won't for the foreseeable future – there simply isn't the available land.

Smart investors know this, and know that even if it costs them an arm and a leg to buy Sydney luxury property, that financial wound will heal (and then some) as demand remains steady and capital growth continues. Like with most things, you get out what you put in. 

Beat the scarcity

The limited land and property in these parts of Sydney leads to another problem – it's hard to buy into prestige markets. People will hold onto these properties for decades – and why wouldn't they? But when people do sell in the Eastern Suburbs, our team of buyers' agents know about it. That's why you should talk to us when you're ready to make a luxury investment in your future.