Who Is Buying Property In Sydney's Inner City?

Sydney’s inner city suburbs have continued to grow in popularity over the past years, as buyers flock to the vibrant suburbs for their lifestyle options and character properties and new units at affordable prices.

So where are these buyers coming from? We take a look at who’s buying property in the inner city.

Who’s buying property in Sydney’s inner city?

Recent data from Domain shows the split of inner-city buyers, comparing the percentage of potential buyers that are local to the percentage that comes from other areas. This data is based on email enquiries sent about Domain-listed properties over the course of 12 months from July 2017 to June 2018.

As detailed below, some suburbs in the inner city see quite an even split between local and out-of-area buyers, while others attract more interest from out-of-area. This highlights what we already know – the well-serviced suburbs of the inner city are appealing to those looking for a positive lifestyle change, as well as seeing demand from those who already call the area home.

Let’s take a look at how the breakdown applies to the inner city suburbs and what demand is like in each.

Alexandria

Thanks to a bustling café scene, access to green spaces like Sydney Park and excellent transport options, it’s no surprise that buyers from all over Sydney are drawn to this inner-city hub. 60.3% of Alexandria’s buyers are from out of an area, with 22.8% coming from the neighbouring inner west and 10.2% from the city. Buyer interest came from the North Shore, St George area, Hills District, Western Sydney and Sutherland.

According to realestate.com.au, 74 units and 38 houses were sold in Alexandria in this period. For rentals, demand is high for houses due to a shortage of standalone properties, but average for units.

Beaconsfield

Neighbouring Beaconsfield has a similar buyer split. The eastern suburbs account for 49.7% of buyer interest in Beaconsfield overall. Next in line was the Inner West in that order.

Realestate.com.au data shows average rental demand for both houses and units in Beaconsfield and a small and tightly held property market with 6 houses and 8 units sold in this period.

Erskineville

Erskineville has the highest percentage of out-of-area buyers in the inner city at 69.3%, but they don’t come from too far away, with 32.3% from the eastern suburbs alone. There’s also strong representation from Sydney City and the Lower North Shore at 8.9% and 7.6% respectively, and some buyer interest from the far west and south of the city.

Over the 12-month period of these Domain email enquiries, 62 units and 29 houses were sold, according to realestate.com.au. Rental demand in Erskineville is average for both houses and units.

Redfern

Redfern shows the most loyalty from in-area buyers, with 52% of potential homeowners hailing from the local eastern suburbs area. Buyers looking to move a little closer to the city from the Inner West represent the highest proportion of out-of-area buyers at 15.4%.

Realestate.com.au shows that 51 units and 39 houses were sold in Redfern between July 2017 and June 2018, while demand for rentals is average across the board.

Waterloo and Zetland

Zetland and Waterloo follow Redfern for local interest from eastern suburbs buyers, at 48.1% and 46.2% respectively. Both of the neighbouring suburbs see similarly high interest from Sydney City and the Inner West, recording percentages between 10% and 15%.

Both suburbs have a very tightly held market for standalone houses, with 5 sold in Zetland and 6 in Waterloo in the year, but a much stronger apartment offering. 58 units were sold in Zetland and 98 in Waterloo, according to realestate.com.au.

Interested in buying or selling in the inner city?

This data shows that buyers from many areas of Sydney are drawn to the inner city. If you’re looking to sell your home to one of these buyers or buy a property yourself, don’t hesitate to contact me today.