How to play the Sydney property dream game
For most buyers prospecting for a home in Sydney is a game of compromise when choosing between a dream home, dream location and dream budget.
Let’s play a game. If you want to live in Sydney, you have three options to choose from: your dream home, your dream location, and your dream budget.
However, the game means you only get to pick two. This is not a game people play for fun in Sydney, it’s the cold hard reality for most buyers.
Living in the Harbour City is a dream for many, with beautiful beaches, vibrant culture, and endless opportunities, making it an attractive destination but, to be honest, if you want to live in this city, you can't have it all. You can try and some do, but unfortunately you must make a choice between a dream home, dream location, or a dream budget.
Dream budget
According to CoreLogic’s home value index (April 30, 2023) the median price of a house in Sydney now sits at $1,031,138, so unless you're lucky enough to win the lottery or inherit a fortune, buying your dream house in Sydney might seem impossible and you’re likely in for a tough ride.
The Sydney real estate market is extremely competitive and expensive where stock levels are down to record lows in most suburbs and those such as Lane Cove North, Forest Lodge and Panania experiencing about 50 per cent less property listings compared to this time last year, while enquiries per listing have soared to as high as 160 per cent (PropTrack).
What we need to remember is that it’s the transaction between a willing buyer and the willing seller who set the market value for a property, so, if we have an undersupply of properties with an over demand of buyers, it’s a perfect recipe for the market to increase and is one of the major rules you’d need to adhere to when playing the ‘Sydney Property Game’. Are you willing to pay something a vendor is willing to accept?
Dream location
On the other hand, if you're looking for a dream location in Sydney, be prepared to compromise on your dream home or budget because the most desirable neighbourhoods like Bondi, Cronulla, and Mosman are costly and are home to some of the most expensive real estate in the city.
A small apartment in these areas will cost you more than a large four-bedroom family home in many suburbs located further out, so, this is where you need to work out what’s important to you, because if living in your dream location takes priority, then you might need to extend your budget and be willing to spend more than you initially planned.
If that’s not possible because rising interest rates are limiting your borrowing capacity, you may be required to compromise on the type of property you purchase, such as settling for a townhouse or apartment instead of a house, which may mean sacrificing a backyard, bedroom and even a larger living space.
Dream home
If a dream budget is your priority, then be prepared to compromise on your location or dream home. While there are some affordable suburbs in Sydney, they may not provide the lifestyle and facilities that you desire so this could mean you need to consider suburbs in less desirable locations or that are located further afield, just to get the house of your dreams within your dream budget.
For a lot of millennials, who now happen to be the largest generation surpassing Boomers (2021 census ABS data), having a family-sized home is taking priority over a “lifestyle location”.
New house and land packages located on the outskirts of Sydney have become extremely popular since the start of the pandemic with millennials chasing the dream home over the dream location.
In 2021 there were people camping in tents overnight, in scenes like that queues for Michael Jackson Tickets in the 90’s, to secure a vacant allotment in a new estate area in Sydney Southwest.
The median price of a new house and land package in Catherine Field is $980,000, compared to Bondi, with a median house price of $3,495,000.
Play the game
Buying a property in Sydney really is a game of compromise. Ultimately, the decision is yours to make. If you want to live in Sydney and enjoy its attractions, start by figuring out what matters most to you, what’s important to you and your family’s needs, what are you most comfortable to “give up” and what are your non-negotiables.
Whether it's a dream house, location, or budget, there's always a way to make it happen with sacrifices and compromises. Welcome to Sydney, the game we all want to win, but it’s not always fun to play.
