The Sutherland Shire in Sydney’s south is fast becoming Sydney’s most accessible region, a new study has revealed. This region is where you’ll find most residents own their own homes, with 14 suburbs recording more than 90 percent of households who own their home outright or who are paying off a mortgage. The lowest rental proportion in Sydney was recorded in Alfords Point, Woronora Heights and Kareela where only 5-8 percent of households rent out their homes.
So What’s Driving The Higher Levels of Household Ownership?
There are a few factors creating this ‘perfect storm’ of higher than average home ownership. Firstly, there are lower compared with Sydney’s inner ring, combined with high incomes in the region; house prices in the region are under $700,000, which is well below the $1 million median mark.
Traditionally a blue-collar area, many tradie residents have recently been enjoying an increase in income, and they have focused on paying off their debt. Also, many parents who bought into the area years earlier, when prices were much lower, have been helping their kids to buy into the area as well, with a bit of equity from their own homes.
A lot of newer buyers, who are moving south into the area are cashed up home sellers from the eastern suburbs. Selling a smaller property, apartment or unit, for higher prices in the east allows families to move into the shire to live in a larger property; with the added benefit of being close to the water with accessible public transport.
What Does All This Mean For Property Investors?
When we see a region like Sutherland developing the way it has and is; there is a great opportunity to introduce another income stream, with the right properties, in the form of a Granny Flat investment opportunity. We see many investors very clued up on building a granny flat in Greater West and Central areas of Sydney, but the market is not as saturated with buyers in Sutherland.
Granny flats and other dwelling improvements become an important feature for many families creating opportunities for investors including but not limited to:
- There may be more baby boomers willing to sell and downsize in the coming years and remain in the area, especially if they have helped their children and grand children get established in the area
- There may be tightly held property keeping prices higher in the future
- For investors, this could mean that there is property out there with owners not aware of what they can do with the property
- This could also mean that some older owners do not want the hassle of building a granny flat.
All of this makes for some exciting property investing and development opportunity currently for the Sutherland Shire.
Suburbs With Most Homeowners:
Alfords Point 94.5%
Camden Park 94.3%
Woronora Heights 94%
Bonnet Bay 93.5%
*Includes mortgagees; Source: ABS, CoreLogic