Demand for Randwick property already exceeding supply

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Mar 2, 2017

Demand for Randwick property already exceeding supply

Local agents say Randwick property is already highly sought after, in the wake of Knight Frank's naming of the suburb as a potential growth hotspot for its proximity to the new light rail.

Image: Laing+Simmons Randwick.
Image: Laing+Simmons Randwick.
Image: Laing+Simmons Randwick.
Image: Laing+Simmons Randwick.
Image: Laing+Simmons Randwick.
Image: Laing+Simmons Randwick.

Local agents from Sydney's eastern suburbs say good-quality Randwick property is already highly sought after, even before the suburb was identified by Knight Frank as a potential growth hotspot for its proximity to the new light rail.

Alex Udler, principal of Laing+Simmons Randwick, uploaded two Randwick properties on the agency's website on a Friday and both were sold by Monday for more than $3.5 million combined.

Udler says the result shows how scarce property is in the area.

A four-bedroom terrace at 117 Bundock Street, Randwick, sold for $2.27 million only days after it was listed, according to Udler, and a three-bedroom, two-bathroom apartment at 12/76 Wentworth Street, Randwick, recently sold for $1.38 million. Both homes were relatively new, said Udler, and were bought by owner-occupiers.

The situation is similar in the rental market, where buyers are prepared to pay above advertised rents just to secure a home, says Bridgette Barker, head of investment management at Di Jones Real Estate.

“In Randwick, at 39 Clovelly Road, we had 17 people attend the inspection of a recently renovated three-bedroom, two-bathroom home," said Barker. The agency received six applications for the property.

“Priced at $1,550 per week, the demand for the family home saw someone willing to pay $1,700 per week just to secure the property," said Barker.

“Since the beginning of 2017, we’ve seen families willing to pay above the advertised price to secure a property,” said Barker.

Michelle Ciesielski, director, residential research, Australia with Knight Frank, identified Randwick in the Wealth Report as a potential growth hotspot for 2017 alongside Dubai South (Dubai), North of Runda (Nairobi), and South Main (Vancouver). Ciesielski said Randwick's proximity to the new light rail service, which will open in 2019, will make commuting to the CBD quicker and easier.

"Randwick’s heritage-listed homes are dotted around two hospitals, a university campus and the Royal Randwick Racecourse, while some of Sydney’s finest beaches are within walking distance," wrote Ciesielski.

Click here to read Knight Frank's Wealth Report 2017.