A million dollars is a lot of money. Except if you want to buy a property on the North Shore. In which case, a million dollars sadly will not get you very far. You would be lucky if you can get a house in knock-down condition for that price if you are trying to buy on the North Shore train line as far as Turramurra or Wahroonga. Even apartments, not the brand new ones at that, are easily fetching around a million dollars in suburbs like Chatswood and Roseville.
So why are properties in the North Shore so expensive? The City fringe and Inner West are obviously popular because of proximity to the CBD and because of its urban lifestyle. But what draws people to live and buy on the North Shore?
Excellent Schools
The North Shore is blessed with so many wonderful schools. Be it public or private, primary or high school, the North Shore has a long-standing reputation as the place to live if you want to have access to a myriad of excellent schools. This is particularly so for public schools. No matter where you live on the North Shore, chances are, the public school you are in the catchment for is pretty good relative to other schools in the State. Obviously schools like Killara High are a magnet for property buyers and property prices often reflect the demand for schools in the area.
Large blocks of land ideal for family lifestyle
The closer you are to the CBD, the smaller are the land plots. Many City fringe suburbs have land sizes around 80-200m2. I once inspected a terrace in Glebe that was on 40m2 land. That’s right folks. Houses are built on land plots the size of a postage stamp.
On the North Shore, it is not uncommon to have houses on 600m2. Many are built on over 1,000m2 of land. Most houses have some kind of yard. Swimming pools are not uncommon. Tennis courts are also prevalent.
Land is expensive. So having houses on such big plots of land (relatively speaking) mean that prices can only be high.
But if you have a family which requires more than 3 bedrooms, then often you have no choice but to buy a house on a bigger block of land because the small terraces of the Inner West and the City fringe usually only have 2 or 3 bedrooms. Many also have no parking – which can be inconvenient for families with kids.
Reliable train line
The North Shore train line is extremely popular. With improvements such as the Macquarie Park line merging with the North Shore line, it is more accessible than ever.
Ease of access to major work and shopping hubs
It’s not just about the train line though. Many North Shore suburbs can easily access big shopping hubs such as Chatswood, Hornsby, Macquarie, Eastwood, etc.
Likewise, the North Shore is quite strategically positioned for those who need to commute (either by public transport or by driving) to work at one of the major employment hubs in the CBD, North Sydney, St Leonards, Chatswood, Macquarie/North Ryde or even Parramatta.
Great lifestyle
The North Shore offers such an amazing lifestyle for families. There are National Parks, playground, and the water all at the doorstep. A lot of people who are new to the North Shore comment on how leafy the suburbs are. The tree-lined streets and lots of open space are much appreciated.
Many young people may choose to live closer to the City initially. But eventually those with families are drawn to the North Shore for the great family lifestyle. That’s why the North Shore has seen so many buyers come from the Inner West and City Fringe. Interestingly enough though, the opposite is true for downsizers and retirees who often want to move back closer to the city and live in apartments or small houses which requires less maintenance.
Immigrants
According to Graeme Hugo in his publication Understanding Where Immigrants Live (1995, Bureau of Immigration, Multicultural and Population Research), there has been significant growth of the non-English speaking background population in the North Shore partly due to the fact that many of the people of Asian origin settling in Sydney in the 1980s arrived with substantial financial assets and skills and hence settled in high-income areas. This is especially true of the Hong Kong-born and Malaysia-born groups. In the past decade, there has been a significant increase in immigrants from China, India, Vietnam, South Korea, and Indonesia.
Understandably, immigrants tend to gravitate towards area of ethnic concentration. This applies to both newly arrived immigrants as well as long standing migrants. The North Shore has proved attractive to immigrants seeking a new place to call home. In particular, suburbs such as Chatswood, and increasingly also Hornsby and nearby Eastwood are extremely popular. This has certainly driven a lot of demand for housing and increased both competition and prices.
Tightly held = low supply = high prices
There is a lot of ‘old money’ on the North Shore and properties which have been held in the same family for decades at a time. It is not uncommon to see advertisements that advertise properties as being “first time on the market in 40 years”, etc. Because the properties are so tightly held and buyers usually live in the North Shore for a big chunk of their family life, the turnover of houses are low. Low supply and high demand naturally mean high prices.
While unfortunately property prices are high in the North Shore, the good news is this area is extremely stable. The North Shore is a long-established pocket of Sydney with an enviable reputation that sees popular demand. Even during times of financial downturn such as the GFC, North Shore properties have held up extremely well in value.
