Home to Sydney’s world famous Harbour Bridge and boasting some of the most prestigious waterfront property in Australia, North Sydney is a thriving commercial hub 3km north of Sydney’s CBD.
North Sydney has the second highest concentration of office space in New South Wales which attracts thousands of professionals, predominantly in the finance, insurance, property and services industries. Residents are also attracted to the harbour lifestyle with its foreshore parkland, shopping, restaurants, cafes and heritage buildings.
Population and demographics
By world standards, Australia has a small population (22.6m), but it is growing faster than the supply of housing to accommodate people. Over the past 12 months, more than 146,000 new permanent residents have migrated to Australia, in addition to the strong national birth rate.
Figures from the National Housing Supply Council show that NSW has a shortage of almost 90,000 dwellings which is expected to drive demand for housing into the medium term at least.
NSW is in the early stages of an expected 25-year growth cycle which is forecast to increase the population by 1.1 million people and create an additional 640,000 households by 2030.
In North Sydney, 50.4% of the population is aged between 25 and 49. More than 57% of North Sydney households are couples without children and almost 35% live in single person households, significantly more than the Sydney average of 21.6%.
The population of North Sydney is highly mobile, with 67% of residents living at a different address five years ago. More than 46% of residents are tenants in rental properties.
North Sydney has a steadily growing and ageing population that is choosing to live in smaller households concentrated around office, retail, transport, health, education and leisure facilities.
All the strengths of Australia’s economy have a solid base in North Sydney which is one of Australia’s major business centres. Almost 78% of North Sydney residents are in the workforce and 62% of employed people work as managers or professionals, compared with 36% throughout Sydney.
Individual and household incomes in North Sydney are high, with 51% of individuals and 42% of households in the top quartile of incomes.
North Sydney is connected to Sydney’s CBD by the Harbour Bridge. It has four train stations, 24-hour bus services and ferries across the harbour to Darling Harbour and Manly.
Australia’s property market is driven by population growth, investment in infrastructure, employment, economic conditions and supply and demand. Buyers and tenants are attracted to lifestyle features such as proximity to work, transport, shops and services.
North Sydney is one of Australia’s premier property areas, with some of the nation’s best homes, including the Prime Minister’s Sydney residence at Kirribilli.
Prices are at the top end, with the median house price of more than $1.2m in 2011, which increased by 30.2% in four years, according to Australian Property Monitors.
Rents are also among the strongest in Australia, with increases for new tenancies in the past 12 months of 14% in Cremorne, 9% in Wollstonecraft, 6% cent in Neutral Bay and 5% in St Leonards, according to RUN Property data.
More than 54% of rented dwellings are in the top quartile of rents in Sydney.
Demographer Bernard Salt, who predicted Australia’s sea change phenomenon, says Sydney’s property market will continue growing.
“New lifestyles, new ethnicities and new social behaviours are likely to drive demand for well-positioned investment property,” Salt said in June 2012. “Sydney is a big global city with critical mass in key infrastructure as well as corporate depth. Sydney’s best years lie ahead.”
A property investor who has been buying in North Sydney since 1983 said the area enjoyed constant capital growth and his off-the-plan multi-storey apartments were among the best performers.
“My properties are never vacant,” said investor Peter, a banker, who asked not to use his surname. “It’s easy to get tenants because of all the offices in the area, the hospitals and being close to railways.”
Sydney is Australia’s biggest market and North Sydney is in the heart of all the best that Sydney has to offer. Australia’s economic stability is represented by North Sydney’s confidence to rejuvenate old areas into new commercial, retail and residential precincts.
Sydney and North Sydney benefit from all the major factors which drive the property market. The commercial centre of North Sydney is a solid base to support expanding residential developments. That is why many RUN Property investors have built their portfolios around the strength of North Sydney’s suburbs.
Compiled by RUN Property which is Australia’s largest metropolitan real estate agency which manages property valued at more than $10 billion and has a dedicated team of sales specialists in Victoria, NSW and Queensland. RUN Property – sales, leasing and management. For more information visit www.run.com.au.