After Uber-sexy Potts Point, where are the next inner Sydney hot spots?

It’s the uber​-sexy suburb in Sydney at the moment – Potts Point – and inner suburbs veteran agent Vicki Laing says it may just have something to do with the arrival of the new, cheaper alternative to taxis.

Along with the lockout laws changing the demographic, particularly at the Kings Cross end, Laing says the high-density suburb’s scarcity of off-street car spots isn’t such a problem: “We’re Ubering​ everywhere so we don’t have to worry about parking.

“And the beauty of Potts Point is that everything is at your fingertips, so I’m watching 95-year-olds walking down to have lunch at Zinc or go to Woolworths.”

Domain Group chief economist Dr Andrew Wilson says Potts Point apartment prices shot up 13.2 per cent in the past year. There’s been less growth (4.6 per cent over the year) in neighbouring Elizabeth Bay, which Laing says could present an opportunity. “You can get a great place on the water at Elizabeth Bay for less than Macleay Street … some people don’t want to walk up the road.”

Although median apartment prices in Darling Point are more expensive, Laing says many empty-nesters and even families are selling up there to move to Potts Point for its convenience so you might now find “more value for your dollar in Darling Point”. Captains of industry are also moving to Potts Point from places like Killara.

“Darlinghurst Road is going to become so gentrified​ no-one is going to recognise it any more.”

At Wednesday night’s auctions, she sold a three-bedroom apartment with harbour views at 23/42 Macleay Street in the circa 1921 block Manar for $2.7 million. “That’s $22,000 a square metre, with one lock-up garage,” she adds.

Laing says other places to search for value include Double Bay. “That’s the new Kings Cross, because they don’t have the lockout laws – the young people are all at the Sheaf – they’re not coming to Darlinghurst Road anymore so people are beside themselves there”. She also suggests the Art Deco flats of Darlinghurst: “Surrey street, Clement Street … anything to get your hands on around there.” 

For affordability, look to Rushcutters Bay with its $763,000 median unit price. But its median has already grown as an extraordinary 41.3 per cent as buyers rush in. James Nixon, of Sothebys, says that’s due to buyers “spilling over” from Potts Point.

He has six contracts out on an Art Deco garden apartment at 2/26 Waratah Street, Rushcutters Bay, up for auction on Saturday (May 28) with a price guide of $1.1 million. “We’ve had 15 or 20 groups looking and a lot of them say their search initially started in Potts Point, but they’re finding better value here,” he says.

BresicWhitney director Shannan Whitney says other hot suburbs at the moment include Redfern for houses – Domain Group figures show prices grew 24.9 per cent – and Darlington, where prices rose 18.6 per cent. He points to the sale of a tiny two-bedroom terrace at 158 Shepherd Street, Darlington, which sold for $1,142,500 on April 23 through Raine and Horne, Newtown.

Whitney says property in the emerging suburbs are often attracting double the number of people at open homes than the more established ones such as Surry Hills, though he’s expecting a two-bedroom terrace at 74 Marshall Street – once a hugely popular patch in Surry Hills – to sell next week. It passed in on a vendor bid of $1.18 million last weekend. Domain Group data shows the median house price in Surry Hills grew 8.3 per cent in the past year, while units dropped 1.3 per cent.