When it comes to property, millennials have been criticised for spending on discretionary items like café breakfasts...
But these behaviours give real insights about what young people are looking for in a place to call home. Let’s take a look at what millennials want in a property and why they’re drawn to Sydney’s inner city.
Sydney inner city property growth and trends
The strong performance we’ve seen on the city fringe over the past decade will only continue, with gentrification contributing to long-term growth prospects. These developing areas are more affordable than suburbs closer to the CBD, but still have all the benefits of proximity to the city.
History tells us that young people transform the areas they move to as they call for better amenities and entertainment, which we’ve seen with the boom in Newtown and surrounding inner west suburbs. City fringe suburbs offer the same opportunity for future growth and even better amenities than we’re seeing today.
Millennials and inner-city property
The pull of the city fringe for millennials is reflected in Census data from the Australian Bureau of Statistics: the 20 to 34-year-old age bracket accounts for 41.3% of Alexandria’s population and 38.7% of Erskineville’s.
Recent research also indicates millennials are moving into the local area, with neighbouring suburb Mascot in the top 10 properties nationwide that have experienced a boom in the millennial population. The 25 to 34-year-old population increased 35% between the 2011 and 2016 censuses and the suburb recorded a 71% price growth in the same period.
Millennial property: café culture and lifestyle
The smashed avocado discussion with millennials and property tells us that café culture and restaurant options are important to a younger demographic. Many millennials would prefer not to compromise on the lifestyle they’ve enjoyed, so are increasingly trying to find ways to maintain their lifestyle within their budget.
The inner city’s café and pub reputation is appealing without the city property price tag. Alexandria and Erskineville’s thriving cafes, bars and restaurants play home to millennial crowds on weekends, while nearby Newtown, Marrickville and other inner west hotspots are also major drawcards for the area.
Why location and public transport matter to millennial home buyers
One of the main requirements we hear from millennials looking for their first property is the location, but it’s not only proximity to the city that counts. Millennials are prioritising locations that are close to work and friends, saving commuting costs and travel time. They also tend to prefer not to move too far from where they’ve been living previously, which is where the inner city offers great benefit to those who’ve been renting close to the CBD.
Getting to work easily requires good public transport systems, like the train stations surrounding Alexandria and Erskineville, the buses that run direct to the city and the cycle paths.
Inner city housing stock and new developments
As the city changes, we’re seeing the focus shift to a higher volume of smaller properties, meaning more units and fewer houses, which increases the housing stock and adds opportunities for millennials to buy into areas they want to call home.
New development areas also tend to attract younger populations, which we’re expecting to see when the Green Square development is complete. Big developments offer a foot in the door of the property market and help to keep city fringe locations more affordable than more central areas of the city.
To discuss opportunities to buy on the city fringe, get in touch with me today.