Who Is Buying In Our Local Area?

Sydney’s inner eastern suburbs are in high demand.

No matter whether it’s Green Square or Waterloo, Zetland or Alexandria, Rosebery or Beaconsfield, the suburbs around here are attracting more buyer interest than most. So where do these buyers come from? What do they look like? And what’s bringing them to our local area?

We look behind the data to give you the profile of buyers in today’s market.

Most local buyers are already locals

The simple fact is that most buyers in our local area aren’t coming from too far away. A significant proportion of people buying property around here are already locals. Domain data shows that around half of buyers in all areas already reside in the eastern suburbs. And for those who don’t, another 25% come from the neighbouring Inner West or Sydney City areas. Here’s how local buyers break down by suburb:

Alexandria

  • Eastern Suburbs 42.2%
  • Inner West 19.6%
  • Sydney City 10.9%
  • Lower North Shore 6.3%

Zetland

  • Eastern Suburbs 50.7%
  • Sydney City 12.4%
  • Inner West 9.6%
  • St George 5.2%

Waterloo

  • Eastern Suburbs 50.4%
  • Inner West 12.5%
  • Sydney City 12.1%
  • Lower North Shore 5.2%

Rosebery

  • Eastern Suburbs 58.1%
  • Inner West 10.8%
  • Sydney City 8.5%
  • St George 3.6%

Beaconsfield

  • Eastern Suburbs 48.8%
  • Inner West 16.5%
  • Sydney City 11.1%
  • St George 5.7%

Who’s buying property right now?

While these figures show you exactly where buyers are coming from, they don’t tell you who they are. However, our recent open homes, auctions and sales have shown us there are different groups of buyers in the market right now, often looking for very different properties. Here are the main buyer segments we’re seeing right now:

First home buyers are active again

The good news is that over the past 12 months, first home buyers are again a real force in the inner eastern suburbs property market. This is backed up by ABS data which shows that loans to first homeowners rose by more than 55% in the year to February 2021. Many of these buyers are young professionals.

First home buyers have been given an incentive to get into the market thanks to government initiatives, such as the Commonwealth First Home Loan Deposit Scheme (which lets you buy with 5% deposit without the need for lenders mortgage insurance) and State-based stamp duty concessions.

Thinking of selling?

Just researching the market?

But the main reason we’re seeing so much activity from first home buyers is a result of record low-interest rates. With major lenders offering fixed-rate home loans for less than 2% interest, it is now more cost-effective to buy than to rent in many instances.

First home buyers are especially active in the market for one- and two-bedroom apartments. They’re also a major factor in the reason why our local area has one the lowest average ages in the country, with a median of 20-39 years.

Downsizers are looking to our area in new numbers

We are increasingly seeing downsizers move into the inner Easter Suburbs. Like young professionals, these buyers want access to the amenities, lifestyle and wonderful transport links of our area, as well as the convenience of a ‘lock up and leave’ lifestyle.
Downsizers are typically interested in spacious three-bedroom apartments, townhouses and terraces. Having often sold the family home, they tend to have larger budgets and can be cash buyers.

Some are also looking to leave the city for regional Australia but want to keep a city base in a convenient area, like ours.

Growing families are staying local

When you have a growing family, there can come a time when a smaller apartment begins to feel a little cramped. Traditionally, this was a sign to sell up and move to somewhere more suburban. However, as our area becomes more and more popular, we are seeing more and more residents looking to upgrade locally so that they can hold onto the lifestyle and connections they’ve created.

These upsizers can often be competing for the same stock as downsizers, making the market in three-bedroom properties especially competitive.

Who’s not buying?

Perhaps the only market segment not active at the moment is investors – mainly because yields are down and vacancies are on the rise.

Investors are usually a force in our local market. For instance, as many as 75% of all properties in Waterloo are rented according to Domain data.

We expect that when the heat comes out of the market, it will recalibrate and investors will see value again.

Want more?

If you’re interested in buying, selling or renting a property in our local area, contact us today.

Article by Brendon Clark
‘The details matter - through every part of the process.’ With decades of runs on the board alongside a fresh outlook, Brendon is co-director of Clark - and one half of one of Sydney’s most dynamic and successful real estate duos. Having carved out a reputation for results in the… Read More
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