Why Buyers Should Consider An Apartment In Sydney’s Inner City Or Inner West
Sydney’s inner city and inner west apartments offer tremendous value, according to a recent report.
We take a look at why.
Houses vs apartments in Sydney’s inner city and inner west
In June 2023, Sydney’s median property value rose 0.9% to hit $1,082,129, according to CoreLogic. Breaking this down further, the median Sydney house price currently sits at $1,333,985, while the median apartment is much more affordable, at $817,059.
There has always been a gap between the price of apartments and houses in Sydney. However, this grew more pronounced during the pandemic, when house prices rose comparatively faster.
In fact, CoreLogic data shows that during the first eight months of 2021, the median house price rose more than twice as fast as the average apartment price: 23.3% compared to 11.5%.
Houses in our area are still relatively affordable compared to some other parts of Sydney - particularly the eastern suburbs and Lower North Shore. This has driven many buyers from these parts of Sydney to our local area.
However, as house prices continue to grow, we expect more buyers to see the value of apartments in our area too. Over time, this could have the impact of driving apartment prices upwards.
Great value in inner west and inner city apartments
The Property Tribune recently highlighted the exceptional value of Sydney’s inner city apartments.
We couldn’t agree more. Apartment prices sit at around half that of houses but still provide all the same location and lifestyle benefits with which our area is synonymous.
The article noted that the Inner West was one of Sydney’s ‘most resilient sectors’ and placed third on Hotspotting’s list of National Top 10 Buys for 2023.
CoreLogic data also shows the combined Marrickville, Sydenham, and Petersham area experienced the highest 12-month value growth in Sydney, with prices rising 5.1%. Sydney’s inner city ranked sixth, with 0.9% 12-month growth.
Apartment living is popular and growing more common each year. In our area, we’ve seen the number of apartments grow rapidly over the past decade, providing buyers with much greater choice.
According to the 2021 Census, 78.5% of residents living in the City of Sydney council area and 42.4% of Inner West LGA locals live in an apartment. This is no surprise, given that 63.8% of dwellings in Erskineville and Alexandria are flats or apartments. That’s three times the state and four times the national average.
The appeal of Sydney’s inner city and inner west apartments
It’s not only the price of apartments that appeals to inner city and inner west buyers.
Our local area’s population has increased, and there has been significant investment in infrastructure developments in recent years.
We already have great transport and proximity to the city, and almost all of our local suburbs have a unique village feel and thriving cafe and restaurant scene.
These factors are attracting young professionals and downsizers to the inner city and inner west. Both buyer groups tend to find apartments appealing for their low maintenance, lock-up-and-leave lifestyle.
Meanwhile, families considering apartment living as a lifestyle choice are attracted by the excellent schools in the inner city and inner west.
Investors are increasingly attracted here due to low vacancy rates and strong tenant appeal - both of which are contributing to high rental growth. In Erskineville, apartment rents have risen 17.7% over the past 12 months, while in Alexandria, they’ve shot up 19.8%.
What can you afford in Sydney’s inner city or inner west?
Below we’ve included a list of the median apartment values for key suburbs in Sydney’s inner city and inner west.
| Suburb | Overall Apartment Median | Median Value One-Bedroom Apartment | Median Value Two-Bedroom Apartment | Median Value Three-Bedroom Apartment |
|---|---|---|---|---|
| Alexandria | $880,000 | $666,250 | $950,000 | $1,472,500 |
| Waterloo | $880,000 | $642,750 | $912,500 | $1,295,000 |
| Camperdown | $838,000 | $735,000 | $1,100,000 | n/a |
| Erskineville | $930,000 | $722,500 | $1,060,000 | n/a |
| Redfern | $950,000 | $685,000 | $1,100,000 | $1,472,500 |
| Rosebery | $800,000 | $660,000 | $875,000 | $1,300,000 |
| Newtown | $720,000 | $620,000 | $988,500 | n/a |
| Marrickville | $760,000 | $597,500 | $812,000 | $1,260,000 |
* Source: realestate.com.au suburb profiles, accessed 17 August 2023
There are plenty of great properties for sale around these medians as we’ve discussed in recent articles.
Recent apartment listings
Last week, on 26 August, we auctioned two excellent apartments: 78/49 Henderson Road, Alexandria, and 9/194 Lawrence Street, Alexandria.
On 2 September, we’ll auction 2/196 Wyndham Street, Alexandria, with a price guide of $795,000. This beautiful two-bedroom, two-bathroom Alexandria apartment in a boutique building offers an unparalleled lifestyle.
And on 9 September 110/81 MacDonald Street, Erskineville will go to auction with a price guide of $1.05 million. A stunning, award-winning architect designed two-bedroom apartment, it also offers two bathrooms, two balconies and parking.
We have many more apartments coming onto the market this spring.
Want more?
Read our article on finding the perfect apartment in Sydney’s inner city and inner west.
Or get in touch with me today to find an apartment that suits your needs.
