Median sale prices are steadily increasing across Paddington, but what’s behind this classic Sydney suburb’s newfound popularity? We take a closer look at the reasons behind the upward trend.
Now that areas like Darlinghurst and Surry Hills have truly hit their stride, an increasing number of buyers are zeroing in on Paddington. This ‘ripple effect’ has prices climbing steadily – good news if you’re thinking of selling, and all the more important to know if you plan to buy in this sought-after area.
Let’s take a closer look at the market and consider some of the changes that are driving this new market trend:
Paddington’s population has stayed steady over the past 10 years at just over 12,000 people. Most are relatively young couples with children working in professional roles. In 2011, the proportion of owner-occupied homes in the market had just passed the 50% mark.
Sales price snapshot: Both houses and units on the rise
According to RP Data, the median sale price for houses in the Paddington area is now $2.1 million. That’s compared to just over $1.3 million in 2012 and $1.6 million in 2014. It’s worth noting that the majority of Paddington homes sold over the past 12 months went for above the $2 million mark.
Units are more approachable in terms of median price, however we’re also seeing a steady increase here. 2016 started with a median unit price of $785,000 and ended at $832,000.
While prices are rising steadily, the overall number of homes sold per year decreased during 2016 to just over 200. That’s down from almost 300 in 2014 and over 300 in 2007. The number of units on the market is less stable year-on-year, but we haven’t seen a total above 95 per year since 2013.
What’s changing? Five key reasons Paddington is in demand
- Developments changing the landscape: Development is now one of the buzzwords of Sydney’s east. The biggest story of the past year has been White City’s $45 million redevelopment, but we’re also seeing plenty of high-end properties including a ‘world class’ facility for seniors on the old Scottish Hospital site.
- New life along Oxford Street: In amongst these new developments are plenty of pub owners and hoteliers keen to be part of Paddington’s resurgence. Along Oxford St, in particular, we’re seeing establishments like The Light Brigade come under new ownership, while even the historic St John’s Church is now a luxury residence.
- Improvements to green facilities: In historic Trumper Park, Woollahra Council has a number of biodiversity and water-saving projects in the works including a native tree planting site and improved use of rainwater. This is just one example complementing other green spaces like the architecturally designed Paddington Reservoir Gardens.
- A focus for foodies: As in so many suburbs across the east, Paddington’s restaurant renaissance is one more factor bringing new buyers into the area. The impact of Westfield Bondi Junction on restaurant and café owners is fast becoming a distant memory as artisanal coffees and gourmet pub meals become the new norm.
- Proximity and walkability: Paddington’s walking distance to the city has always been important for those who work in the CBD. For young families, in particular, the time saved getting to and from the office is well worth budgeting for.
The changes happening across Paddington mean the market is going from strength to strength – a trend we’ve seen borne out in our recent sales. If you’re planning to make your move in Paddington, get in touch today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.