It’s well known that Sydney is Australia’s most expensive housing market, with land values in some of the blue-chip areas continuing to stand head and shoulders above the rest of the country.
According to data from Domain, buyers in Paddington, Darlinghurst, Surry Hills, and Woollahra are paying more than $20,000 for only one square metre of land.
The median price buyers are paying for land in Sydney was $2590 last year. However, in Paddington in the Eastern Suburbs, buyers were paying $27,440.
That was followed by Darlinghurst ($25,065), Surry Hills ($24,352), and Woollahra ($23,043).
At the same time, the most affordable land based on the square meter rate was found in the Blue Mountains, where buyers only had to pay under $1000 per square metre.
According to Domain, the high prices that come with some of the more expensive suburbs are because buyers are prepared to pay for the privilege of living close to the city and near all the things that make Sydney such a great place to live.
“Land comes at a premium and land is finite,” Domain said.
“People are willing to pay for less space and pay a higher price per square metre in some of these prime, premium locations in Sydney.
“They are suburbs that are highly sought after, they are suburbs that people fight to get into.”
Notably, some of the most expensive suburbs in Sydney had lower square metre rates, generally because they had larger blocks of land.
That was certainly the case when looking at Vaucluse and Bellevue Hill which both recorded a median price of around $14,000 per square metre of land.
At Henderson Advocacy, we are always focused on buying in the most premium areas of Sydney, and the fact that these rates are expensive is no surprise. This is exactly what we want to be seeing.
In these expensive locations, land is tightly held and with Sydney’s population rising more and more every single year, we continue to see ongoing demand for property in good locations. Generally anywhere in Sydney that is near the water or close to the CBD is going to be in demand over time.
At the same time, the prices that people are willing to pay will also increase more in these areas. Many of these locations are also very aspirational places to live for many and they will do anything they can to get into these suburbs.
And when they finally do buy there, most have very few reasons to ever sell. No matter whether you’re an upsizer, downsizer, or investor, you know that if you buy well in these locations, over the long run you’ll see very steady growth.
We always look at property from the perspective of wanting to see that competition. If no one is trying to buy the property except for you, is the property really going to be in demand?
That’s why we see properties in these expensive locations going to auction because there are so many buyers ready and willing to pay higher prices for them. And it’s for that reason alone that they make fantastic places to buy in.
