Babe alert: The new Sydney hotspots for young families

The soaring price of stand-alone dwellings close to the city is causing a seismic shift in where and how young families are choosing to live.

Some of them are opting to move further out to where prices are more affordable, while others are staying put and being a bit more creative in their choice of home.

McGrath’s director of sales Matt Lahood says demand for garden apartments and townhouses is rising rapidly, with more families sacrificing space in order to stay close to where they lived before they had children.

“Apartment living, especially where there’s access to a garden, has become extremely popular,” Lahood says. “A lot of families have also opted for townhouses with small courtyards.”

In Little Bay and Chippendale, the trend is particularly pronounced, he says. The starting price for a garden apartment in Little Bay is about $1 million, roughly the same as a two-bedroom garden apartment in Chippendale’s Central Park development. While in Botany, a three-bedroom townhouse in a 10-year-old complex recently sold for $1.1 million, Lahood says.

All are significantly lower than houses in these suburbs. For example, the median house price in Little Bay is $1.6 million, according to Domain Group data.

It’s a similar story on the lower north shore. Belle Property Lane Cove’s James Bennett says freestanding homes near Lane Cove village typically start about $1.8 million, whereas it’s possible to buy a three-bedroom townhouse in the same area for about $1.5 million.

Open-plan living spaces and bifold doors opening onto a flat garden or courtyard are particularly prized, he says.

But young families not having these properties all to themselves. Cashed-up empty-nesters are going toe-to-toe for low-maintenance alternatives to freestanding homes.

“Downsizers that want to stay local are cashed-up and they want to compete for these properties,” Bennett says.

But freestanding homes have rocketed up even more in many of Sydney’s inner-ring suburbs, which is forcing families who want these properties to look further field.

Even five years ago, the inner west was viewed as an affordable option, but suburbs such as Newtown, Erskineville and Leichhardt are now beyond the reach of many young buyers.

Says Lahood, “Anything good in these suburbs would probably cost $1.25 million to $1.5 million. That’s for a yard, three bedrooms and probably no parking.”

Instead, what he describes as the “outer ring” of the inner west – including Earlwood and St Peters – is experiencing a baby boom of sorts.

“You can still find something in a not-so-great street for maybe $800,000 to $1 million. There are lots of nice parks, heaps of schools. These suburbs are extremely popular with young families.”

Buyer’s agent Simon Cohen, managing director of Cohen Handler, says in the past, young families who couldn’t afford to live in the eastern suburbs traditionally shifted to the inner west or relocated to upper north shore neighbourhoods as Roseville, Lindfield and St Ives.

He says the prices in most of those suburbs are now “exorbitant”, so they’re looking elsewhere, including on northern beaches.

“They are going to make that compromise, being further away from work, but they will have a garden, a freestanding house and they might be near the beach. I’ve seen so many people lately change their perspective about where they want to live, because it’s so unaffordable to live near the city.”

Sydney’s median house price smashed through the $1 million mark for the first time in the June quarter last year, fuelled by a combination of low interest rates and a flurry of investor activity.

Domain Group senior economist Dr Andrew Wilson predicts a future in which more entry-level properties for young families will be apartments in Sydney’s inner suburbs.

“We shouldn’t be surprised,” Wilson says.

“This is what the international price-tag does. It makes land so valuable. The only way to go is up. We’re just following New York, Paris and London. This is the way of the world.”

Long search pays off

Michael Zagdanski with wife Neridah and Cameron (aged 11) and Lauren (aged 9) with dog Tilly. Photo: James Alcock

A gaggle of ghouls, witches and zombies attended the auction at which Michael Zagdanski and his wife Neridah bought their home in the inner west suburb of Hurlstone Park last year.

Happily, the undead and their friends were not bidding at the auction on October 31. They were merely Halloween trick-or-treaters eager to meet their new neighbours.

Michael, an operations team leader, and Neridah, a marketing manager, paid $1,675,000 for the three-bedroom, two-bathroom home, where they live with their children Cameron, 11, and Lauren, 9, and cavoodle, Tilly.

The family had been renting a two-bedroom home in Dulwich Hill after selling their three-bedroom house in Lewisham in November 2014.

“They were building an array of new units between the rail and the light rail. We were in that triangle and it was just getting too crowded,” Michael says.

Their 18-month search extended in an arc from Croydon through Ashfield, Ashbury, Dulwich Hill and Hurlstone Park. Hurlstone Park appealed because of the size of the blocks, the open spaces and convenience of the inner west lifestyle. 

“In the first couple of days, the kids were playing in each other’s yards. It’s very family friendly. Everyone wants to say hello.”

Andrew Knox of Richardson and Wrench Marrickville says Hurlstone Park, Dulwich Hill and Marrickville are happy hunting grounds for young families moving from Newtown, Glebe, Alexandria and Redfern. 

“Once they have kids, life changes, so they do need the garden. They don’t want to live in worker’s cottages or units any more,” Knox says.

Cammeray garden apartment is ideal for a young family

6/370 Miller Street, Cammeray
Guide: $950,000 to $1 million

Along the lower north shore, young families on a budget are competing against downsizers and investors for easy-living apartments near shops and transport.

This two-bedroom garden apartment with parking at the rear of a pet-friendly complex ticks a whole lot of boxes for parents with young children. Recently renovated, it has a Caesarstone kitchen, European appliances, separate bath and shower, fresh paint and new carpet. 

The spacious north-facing living space flows through to a large entertainer’s deck and low-maintenance level lawns.

Stockland’s Cammeray Shopping Centre is a big drawcard for would-be buyers, says agent Trevor Richardson of McGrath Neutral Bay (0401 973 734). “And access to the city is phenomenal – you go straight onto the freeway.” 

“There’s also going to be a new school across the road.”

Anzac Park Public School, on the corner of Anzac Avenue and Ernest Street, is due to open to all primary years from 2017.

To buy a freestanding home in Cammeray would cost about $2 million “for something that’s pretty rundown”, Richardson says.

Semis typically start just under $2 million.

“A lot of people in the position where they’re looking at starting a family or they have one or two children, for the most part they’re purchasing townhouses or apartments like this. Otherwise, it’s too much of a stretch.”

The apartment goes to auction on March 19.

2/57 Garling Street, Lane Cove
Guide: $1.05 million to $1.1 million

This three-bedroom, two-bathroom apartment in a block of 10 is in a quiet cul-de-sac adjoining bushland. The level layout features an L-shaped living space flowing through to an outdoor entertaining area and garden. There’s heaps of storage space, too. It goes to auction on March 19 through Mary-Anne Fitzgerald of Blunts Real Estate (0418 648 654)

1/18 Hawkesbury Avenue, Dee Why
Guide: $850,000 to $925,000

Only one block from the shops and an easy walk to Dee Why beach, this updated two-bedroom apartment goes to auction on March 23. Combining coastal living with designer style, the north-facing residence in the CeVu building has 134 square metres on title, plus exclusive access to an additional 34 square metres of gardens. Lachlan Yeates of Raine and Horne Dee Why (0414 660 033) is managing the sale.

19/2 Pearson Street, Balmain East
$920,000 to $1 million

Watch your friends multiply in the lead-up to New Year’s Eve at this two-bedroom ground-floor apartment with Harbour Bridge views. As well as exclusive access to a terrace and garden, there are built-ins in both double bedrooms and undercover parking on the title. It goes to auction on March 24. Contact ​Ada Mastronardo of Cobden & Hayson (0410 698 019).