How Erskineville has Outperformed the Inner City Market

Erskineville has always been a popular suburb.

But did you know that a realestate.com.au analysis of PropTrack valuation data has revealed that Erskineville is one of 87 suburbs across the country where house prices have outperformed the local market?

This makes Erskineville a “hotspot” that has recorded stronger growth compared to all other nearby suburbs.

Erskineville experienced excellent year-on-year growth of 11.7%, according to PropTrack, taking its median house value to $1,702,000.

Nearby Dulwich Hill was the only other inner-west suburb included. It also experienced impressive year-on-year growth of 13.7%, lifting its median house value to $2,006,000.

Affordability drives performance

Over recent years, the premium end of the market has largely performed best, but that may no longer be the case. The report highlighted the fact that most of the 87 outperforming suburbs were classified as “affordable.”

PropTrack senior economist Eleanor Creagh attributed the oversized property value increase in areas like Erskineville down to “stretched affordability following the jump in interest rates over the past two years”.

She was quoted as saying, " More affordable regions held up better in 2022 when interest rates were first rising, and in 2023, many relatively affordable suburbs maintained this outperformance as interest rates continued to rise and housing affordability remained at multi-decade lows.”

Why buyers love Erskineville

According to realestate.com.au, the overall median house price in Erskineville is currently $1,800,000 (almost $100,000 more than the value cited by PropTrack), while the median apartment value sits at $1,001,500.

Although these suburb medians are far higher than the Sydney-wide medians (currently $1,395,804 for houses and $837,253 for apartments), Erskineville’s inner-city location, amenities, and lifestyle offer an appealing and relatively affordable option for many buyers.

We see home hunters from other parts of Sydney drawn to Erskineville’s village feel, excellent location, transport links, and range of housing. For example, buyers from the Lower North Shore or Eastern Suburbs often make the move to Erskineville to trade an apartment for a terrace house.

First home buyers often also see the value in Erskineville’s apartment market, with many homes now meeting the cap thresholds for the First Home Buyers Assistance scheme.

Downsizers are also a growing demographic, with many buyers selling their houses in the suburbs to move into smaller properties in Erskineville.

What happens when a suburb over-performs the market?

realestate.com.au notes that “surging house prices have boosted values for property owners but made it harder for house hunters to buy in, especially in markets where demand outweighs supply.”

This is exactly what we’re seeing in Erskineville right now, particularly when it comes to houses.

realestate.com.au data on Erskineville reveals that 1,736 online buyers were competing for just 15 houses available over the last month. It’s a little less competitive for apartments, thanks to increased (and growing) supply, but it’s still tilted strongly in favour of sellers, with 1,766 buyers looking at the 60 apartments on offer.

Last year, realestate.com.au also highlighted Erskineville as an area with strong buyer demand. It noted that Erskineville houses received 21 enquiries per listing, up 4% year-on-year. Meanwhile, apartments in Erskineville saw 12 buyers per listing—a 12-month increase of 16%.

The changing face of Erskineville

Over the past few decades, Erskineville has transformed from a working-class industrial suburb into a vibrant city-fringe lifestyle location, home to professionals and city workers.

Cafes, restaurants and shops have moved in, and the demographics, employment, incomes and lifestyles of people in our area have changed. There are plenty more infrastructure developments and new amenities in the pipeline, too. Overall, the whole inner city and inner west is a far more affluent place than it once was, with rising property prices to match.

As we wrote last year, Erskineville actually topped the list of the most socio-economically advantaged postcodes in Australia from the Australian Bureau of Statistics.

Erskineville’s Victorian terraces and converted warehouses and factories are highly sought after. Their historical and aesthetic significance is recognised by the fact that approximately 75% of Erskineville is covered by Heritage Conservation Areas.

According to 2021 Census data, Erskineville is home to 9,657 people, living in 5,204 dwellings.

Thanks to the urban regeneration that has transformed it from industrial to residential, the majority of dwellings are now modern apartments (over 60% of dwellings). Meanwhile, only 3.2% of dwellings are freestanding houses, and 34.5% are the classic terraces, townhouses or semi-detached workers’ cottages that Erskineville is well-known for.

Recent Erskineville Listings

4A Knight Street, Erskineville sold in July 2023 for $2,250,000. This modern terrace house offered three bedrooms over three levels and generous entertaining areas indoors and out.

22 Flora Street, Erskineville is a quintessential, character-filled Erskineville worker’s cottage. Move-in ready, it offers just one bedroom but scope to extend and sold in June 2023 for $1,183,000, representing a great entry point to houses in this suburb (and within reach of many first home buyers).

403A/72 MacDonald Street, Erskineville This fabulous two-bedroom, two-bathroom apartment in “Eve” goes to auction on 16 March with a guide of $975,000.

604/5 Hadfields Street, Erskineville, also goes to auction on 16 March. It has two bedrooms, two bathrooms, and 99 square metres on title and a guide of $1,050,000.

71/20 Eve Street, Erskineville: This generous three-bedroom apartment is spread over 144 sqm and includes an additional study, balcony, and courtyard. It’s currently for sale for $1,250,000.