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who purchase a unit in Elanora Heights would spend at least
$100,000 less than someone who buys a similar property in
Narrabeen, which is closer to the beach. The market has been
hot over the past 12 to 18 months but there’s less competition in
Elanora Heights than there would be in suburbs such as Manly
or Mona Vale. Unit blocks tend to be small and older in style but
they’re also tightly held.
“ T here aren’t many units in Elanora Heights, it’s predominantly
housing,” Harvey explains.
“ It’s a bit of a forgotten area. You have to drive through Terrey
Hills and Ingleside to get to it and a lot of the properties there are
on five-acre blocks.”
However, this is what makes Elanora Heights unique. It’s
a coastal, bushland retreat and still affordable. Units are also
popular with downsizers.
“ T he price point is rising because more families are
discovering it,” Harvey says.
“ You have a little village shopping centre and I’d be surprised if
there are more than 100 units in the suburb so there will always
be good demand for Elanora Heights units and there’s very
few townhouses. ”
The downside is the lack of public transport and the fact
it’s considered a quiet suburb, not bustling with restaurants
For $625,000 you’d get an average, two-bedroom apartment
in an older-style block. The rental market is softening, although
Elanora Heights is still close enough to the city that it will
continue to attract renters, Harvey notes.
“ If you buy a unit in Avalon or Newport it’s a lot further up and
you’ll find the travel time is just that much further,” he says.
RENTAL YIELD: 6.0%
WEEKLY ASKING RENT: $750
MEDIAN PRICE: $648,000
DISTANCE FROM SYDNEY CBD: 1.4 KMS
It’s hard to imagine that you can find a suburb with a rental
yield of six per cent that’s located within walking distance to
Who would have thought you don’t need to go to the ’burbs to
find something with such strong rental returns.
In fact, you don’t even need to look more than five
Haymarket is blessed with universities, shops, eateries and
transport. It’s close to the University of Technology Sydney,
Sydney University and TAFE NSW Broadway campus.
It’s just metres from Central Station – the biggest station in
New South Wales and possibly Australia – and footsteps to
China Town and Paddy’s Markets.
University students love it for its access to George Street. It’s
also close to the nightlife of Darling Harbour and Cockle Bay,
pictured on page 38. So university students have the best of
both worlds – they can be close to uni, friends and work and also
fun nightclubs and restaurants.
Unit prices are also much cheaper than nearby areas such
as Glebe or Surry Hills but the rental return is just as strong, if
Opteon Property valuer Matthew Nib says like the rest of
Sydney, Haymarket is hot at the moment.
“ There’s strong investor interest there because of the proximity
to the university and local amenities,” he says.
“ There’s also a large student population, mainly overseas
The downside is that Haymarket is flooded with units and has
many highrises and competing properties, so down the track,
capital growth might be somewhat restricted.
And don’t be fooled if you go for an apartment without the
gyms or pools – Nib says a lot of the older, more basic buildings
have very high strata levies, due to the heavy maintenance they
require. So you might think an older block will have cheaper
strata fees, but you could be up for a massive bill.
“ Some complexes are better regarded than others, given the
ages of the different developments,” he says.
“ If you’re looking to sell the unit, there’s also a lot of similar
products you might be competing against at any given time.”
However, Herron Todd White valuer Kim Quick says while
there are older units, many are being demolished to make way
for the Inner West Light Rail extension.
“ There has been a lot of gentrification down there,” she says.
“ You have a lot of new buildings going in there to support the
university lifestyle and to support student accommodation, as
well as being a place where people can live and work. ”
She adds there’s a lot of work happening around
Darling Harbour and King Street Wharf, not to mention
“ There’s a lot of new things happening to make a Haymarket
unit quite attractive,” she says.
YIELDS OF GOLD \\ COVER STORY
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