Sydney's summer heatwave affecting home buyers' decisions

Sydney’s ferocious summer heatwave is warping home buyers’ decisions, with buyers bidding less for homes without airconditioning and wrangling over prices when they know they have to fork out to install it themselves.

They’re also turning their backs on green, environmentally friendly homes that rely on cross-ventilation alone for cooling interiors and are generating a sharp resurgence in the popularity of homes with swimming pools.

“We’re finding there are people who are keeping a certain amount aside to put in airconditioning when a house or apartment doesn’t already have it, so they’re bidding a sum minus that cost,” says Rosalie Gordon, principal of the inner-west real estate agency Planet Properties.

“They might put aside $10,000 or $20,000, and they’re not touching that at auctions. In addition, buyers are taking more notice of the aspect. Houses that face west are always hotter than other houses so, if they’re open plan and open out to the west, people then definitely want airconditioning.”

Gordon sold a property last weekend whose owners said they were looking for something else because its backyard wasn’t big enough to fit in a pool. They had young children and said they really needed one to cool everyone down.

In western Sydney, which is suffering the brunt of high temperatures, that is even more commonplace. Once, people had filled in pools as they couldn’t be bothered with the maintenance and cost, says Doug Driscoll, chief executive of Starr Partners in the western suburbs. Now, they’re digging them back up.

“A few years ago, people started to shy away from homes with pools, seeing them as a bit of a nuisance with the upkeep and aggravation in terms of the red tape and pool regulations,” Driscoll says. 

“But in the last 12 months and, especially recently with the high temperatures, we’ve seen a real resurgence in demand for homes with pools, and seeing more being built with pools. Out here, land is cheaper so we have more room for them generally. And people want to get outside, but want to be able to do so and keep their cool.”

Swimming pool builder Crystal Pools reports its sales this January were three times up on the previous year. Sales manager Andrew Rothery says a pool’s main competition is a new car or family holiday. “But the heat seems to be driving people towards pools, and helping them make their decision much more quickly to put one in,” he says. 

Airconditioning is also on everyone’s list when they’re hunting for homes in the west. It is rare for new houses not ot have the option of airconditioning, with temperatures soaring ever higher each summer, Driscoll says.

“If you’re moving somewhere like Penrith, where temperatures can get up to 45 degrees, it’s inconceivable you would live without airconditioning,” he says. “It would be, quite frankly, inhumane. It’s almost a prerequisite of every dwelling now and, increasingly, people are looking at energy efficiency in buildings, with things like double glazing not so much to keep the cold out in winter any more, but to keep the cool in during summer.”

In the eastern suburbs, pools are now also a hot item. They had similarly gone out of fashion over the past few years, says Craig Pontey, director of Ray White Double Bay. 

“But there’s no doubt now that people want to buy something with a pool, especially if they have kids,” he says. “A pool is a big thing. 

“Everyone is also keen at the moment to buy something with airconditioning and are willing to pay a premium for that when they’re out looking in this kind of heat. And they’re not very interested in green homes without it.”

If homes don’t already have airconditioning, Vicki Laing of Laing Real Estate in Potts Point is finding people are negotiating more over prices as, again, they’re factoring in the cost of installation. 

“If you think it’s going to cost $20,000 for a four-bedroom house, then there is a bit of negotiation going on, particularly if you’re limited in what you can borrow from the bank,” she says. “That would happen especially with young families.

“The Asian market also won’t accept homes without aircon. They definitely want it. And I think everyone is now having to reconsider environmentally friendly buildings that don’t allow airconditioning, but rely on cross-ventilation instead. 

“People are now struggling in those. Cross-ventilation can’t cope with this heat.”