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type="application/ld+json">{"@context":"http://schema.org","@type":"NewsArticle","author":{"@type":"Person","name":"Kate Burke"},"dateModified":"2023-08-18T19:00:00+00:00","datePublished":"2023-08-18T19:00:00+00:00","description":"Home buyers willing to compromise on space can buy into prime pockets of Sydney for a fraction of the cost, but will face a hurdle when it’s time to upsize.","headline":"Hot Sydney suburbs where home buyers can get in for less - with one 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href="/topic/sydney-house-prices-1mo2">Sydney house prices</a></li></ul><script type="application/ld+json">{"@context":"http://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"https://www.watoday.com.au/property","name":"Property"}},{"@type":"ListItem","position":2,"item":{"@id":"https://www.watoday.com.au/property/news","name":"News"}},{"@type":"ListItem","position":3,"item":{"@id":"https://www.watoday.com.au/topic/sydney-house-prices-1mo2","name":"Sydney house prices"}}]}</script></div><p class="wug9S"><span>This was published <!-- -->1<!-- --> <!-- -->year<!-- --> ago</span></p><h1 data-testid="headline" itemProp="headline">Hot Sydney suburbs where home buyers can get in for less - with one compromise</h1></div></div></header><section class="x5U69"><div class="eyqx4 up6zR"><div class="YjR-r"><h5 class="ey7KU"><span class="WAXFI">By </span><span><span data-testid="byline"><a href="/by/kate-burke-gznefq" title="Articles by Kate Burke">Kate Burke</a></span></span></h5><div class=""> <span class="_6rKYd"><time class="xt6gv" data-testid="datetime" dateTime="2023-08-19T03:00:00+08:00">August 19, 2023 — 3.00am</time></span></div></div></div><div class="Xzt9c noPrint"><div class="dDuGY"><div class="wMz9s"><button aria-checked="false" aria-describedby="saveTooltip" aria-label="Save article to read later" class="lYnY4" role="switch" type="button"><svg aria-hidden="true" class="kTpHl IIE5G" focusable="false" height="1em" width="1em"><use xlink:href="#icon-save"></use></svg><span class="_1UKiw">Save</span></button><div aria-hidden="true" class="GvnJU gD20Q" id="saveTooltip" role="tooltip"><button>Log in</button>,<!-- --> <a data-testid="login-register" href="https://watoday.myfairfax.com.au/channel/cWvEleexy48f-PI5-jlBnw/members/signups/new?callback_uri=">register</a> <!-- -->or <a href="https://subscribe.watoday.com.au/?promote_channel=HI_HL_GNL">subscribe</a> <!-- -->to save articles for later.</div><div><div aria-hidden="true" class="GvnJU VNUKJ _1pSgb" id="onboardingTooltip" role="tooltip"><h3>Save articles for later</h3><p>Add articles to your saved list and come back to them any time.</p><button class="T0DxF Fe1BB I7jPK" data-ffx-event-action="cta click" data-ffx-event-category="save onboarding" data-ffx-event-label="got it - part 1" data-ffx-hittype="event">Got it</button></div></div></div><div class="WaJMq"><div class="_5HQBJ"><button class="XsMHX j7Zux" data-ffx-event-action="cta click" data-ffx-event-category="component" data-ffx-event-label="font size normal" data-ffx-event-value="0" data-ffx-hittype="event">Normal text size</button><button class="GGU-4" data-ffx-event-action="cta click" data-ffx-event-category="component" data-ffx-event-label="font size large" data-ffx-event-value="0" data-ffx-hittype="event">Larger text size</button><button class="Jftp7" data-ffx-event-action="cta click" data-ffx-event-category="component" data-ffx-event-label="font size extra large" data-ffx-event-value="0" data-ffx-hittype="event">Very large text size</button></div></div></div></div></section><section class="mm0yF" data-testid="article-body-top"><aside class="KxH15"><section class="PnaqT lIeu1"><div class="_5ToXO"><h3>Key points</h3><ul><li>More than $7 million separates median house and unit prices in suburbs like Bellevue Hill and Vaucluse.</li><li>Sydneywide, houses cost about double the price of a unit, and the price gap is expected to widen.</li><li>The widening price difference is making it harder for buyers to upsize.</li></ul></div></section><div class="rwQwy"><header><h2>Property listings</h2></header><div id="dg-recommended-listings"></div></div><div class="FCOQC _2ylTh"><div class="container"><div class="adWrapper IMjKL noPrint" data-testid="ad"><small class="CtZLl">Advertisement</small><div class="" id="adspot-160x600_300x250_300x600-pos2-desktop"></div></div></div></div></aside><div class="wsquJ" data-testid="article-body"><div><div class="TqQ8t"><div class="PMdfl" id="beyondwords-player"></div><div class="_--xHC" data-testid="showPlayerOverlay"></div></div><div class="Hy4HP z5wPE" data-testid="body-content"><p>House hunters prepared to make the switch to apartment living can buy into Sydney’s prime suburbs for a fraction of the price.</p><p>Unit values in some pricey pockets of the city are now less than a fifth of typical house values, due to a growing price gap between property types over recent years.</p><figure class="_72JXS _0SAJQ mSNnk Wnq-J" data-testid="image"><div aria-label="enlarge image" class="-IWVI" role="button" tabindex="0"><picture class=""><source media="(min-width: 1024px)" srcSet="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.9788%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787, https://static.ffx.io/images/$zoom_0.378%2C$multiply_1.9577%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787 2x" height="494" width="740"/><source media="(min-width: 768px)" srcSet="https://static.ffx.io/images/$zoom_0.378%2C$multiply_1.0159%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787, https://static.ffx.io/images/$zoom_0.378%2C$multiply_2.0317%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787 2x" height="512" width="768"/><img alt="Apartments in prime pockets like Bronte cost less than a third of the typical house price." src="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787" height="390" width="584" srcSet="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787, https://static.ffx.io/images/$zoom_0.378%2C$multiply_1.545%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/4da6be59fa17c610087c8a79beb7a484c3e7f787 2x"/></picture></div><figcaption class="qTXWa"><p><span class="_5nQzY">Apartments in prime pockets like Bronte cost less than a third of the typical house price.</span><cite class="Zo2UY"><span class="ALMCC">Credit: </span>Brook Mitchell</cite></p></figcaption></figure><p>The widening divide is pushing more buyers to apartments, and keeping them there, as the cost of upsizing locally becomes unreachable for more Sydneysiders.</p><p>More than $7 million separates median unit and house prices in Bellevue Hill and Vaucluse, while units in Bronte, Mosman, Lindfield, Strathfield and Freshwater, cost less than a third of each suburb’s house median, Domain data for the June quarter shows.</p></div><div class="GJua6"></div><div class="Hy4HP z5wPE" data-testid="body-content"><p>Sizeable gaps are also seen in comparatively more affordable suburbs like West Ryde, Carlingford and Ashfield. Only suburbs with a minimum of 50 house and unit sales each over the year to June were included in the analysis.</p><p>Greater Sydney’s house median of about $1,538,000 is almost double the unit median of about $773,800. Five years ago, a typical house cost about 50 per cent more than a unit, but house values have soared since, while unit values declined.</p><div class="Bvs8k noPrint"><div class="cFXtp _5-9mZ"><iframe class="_2dcOW _5-9mZ _7Dkql" data-testid="embed-iframe" frameBorder="0" height="157" data-src="https://datawrapper.dwcdn.net/8CiwO/8/" title="Embedded iFrame"></iframe></div></div><p>KPMG urban economist Terry Rawnsley said the biggest price gaps were in well located, often already dense areas, where blocks of land commanded the highest premiums, and apartments tended to be in older blocks.</p><p>The gap was smallest, but still sizeable, in outer suburbs and regions where apartments tended to be larger, and newer and better located than median priced houses.</p></div></div></div></section><div class="PFPZd"><div class="container"><div class="adWrapper IMjKL noPrint" data-testid="ad"><small class="CtZLl">Advertisement</small><div class="" id="adspot-728x90_970x250-pos99-desktop"></div></div></div></div><section class="KylbS" data-testid="article-body-bottom"><div class="wsquJ"><div><div class="Hy4HP z5wPE" data-testid="body-content"><p>It would be easiest to upsize in Riverstone, Terrigal and Marsden Park where houses were about 15 to 25 per cent more expensive than units, while house prices in Penrith and Campbelltown were about 45 per cent more expensive.</p><div class="J-2pM ZfcXI iQkQu noPrint"><span class="wekbt JWiCP tcU5i"><span class="EaK8B"></span><span class="q4Eba">Loading</span></span></div><p>While few apartment residents, if any, in a suburb like Bellevue Hill would ever have expected to upgrade to a house, it was previously a much more realistic option in other parts of the city.</p><p>Rawnsley said the growing price gap had changed the property journey for Australians, even over the past decade.</p><p>“Once you’d buy a two-bedroom apartment, get a bit of equity, maybe have a child along the way and then trade up to a detached house, but now … more people have to go to a three or four-bedroom apartment next,” he said.</p></div><div class="GJua6"></div><div class="Hy4HP z5wPE" data-testid="body-content"><p>Rawnsley said the gap was likely to widen as big blocks became scarcer, and demand for apartments increased, due to affordability constraints, further driving up prices for blocks with development potential.</p><p>“As the population grows, medium density living and apartments are going to become much more common which is bringing us in line [with the] rest of the world,” he said, adding a diversity of housing was crucial to ensuring more affordable homes and upsizing and downsizing opportunities.</p><div class="Bvs8k noPrint"><div class="cFXtp _5-9mZ"><iframe class="_2dcOW _5-9mZ _7Dkql" data-testid="embed-iframe" frameBorder="0" height="157" data-src="https://datawrapper.dwcdn.net/VMdi6/5/" title="Embedded iFrame"></iframe></div></div><p>Ray White Upper North Shore sales agent Jessica Cao said apartments in the region mostly drew interest from second home buyers and downsizers, given median unit values topped $1 million – for which it was hard to find a decent two-bedroom unit.</p><p>“Unless they have family help [when it comes time to upsize], they generally can’t stay in the area, to upgrade to a house they need to move more towards the western part of Sydney or further north,” Cao said.</p></div><div class="GJua6"></div><div class="Hy4HP z5wPE" data-testid="body-content"><p>Among those leaving the area is Lindfield resident Kwang Hong Tay, who recently sold his family’s one-bedroom apartment to move to a four-bedroom townhouse in Asquith.</p><p>“Lindfield is really good, it’s not too far from the city, about half an hour by train, it’s close to Chatswood ... but it’s just the house prices are so scary, houses are up to $4 million to $5 million around Lindfield, so we have to move outward, so we can [afford to] get something with land, and more space for the kids,” he said.</p><figure class="_72JXS _0SAJQ mSNnk Wnq-J" data-testid="image"><div aria-label="enlarge image" class="-IWVI" role="button" tabindex="0"><picture class=""><source media="(min-width: 1024px)" srcSet="https://static.ffx.io/images/$zoom_0.116%2C$multiply_0.9788%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa, https://static.ffx.io/images/$zoom_0.116%2C$multiply_1.9577%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa 2x" height="494" width="740"/><source media="(min-width: 768px)" srcSet="https://static.ffx.io/images/$zoom_0.116%2C$multiply_1.0159%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa, https://static.ffx.io/images/$zoom_0.116%2C$multiply_2.0317%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa 2x" height="512" width="768"/><img alt="Kwang Hong Tay recently sold his family’s one-bedroom apartment in Lindfield, to upsize to a townhouse in Asquith." loading="lazy" src="https://static.ffx.io/images/$zoom_0.116%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa" height="390" width="584" srcSet="https://static.ffx.io/images/$zoom_0.116%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa, https://static.ffx.io/images/$zoom_0.116%2C$multiply_1.545%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/fbbe628183e4ae2b90cbaaca8fcb8eb5371863aa 2x"/></picture></div><figcaption class="qTXWa"><p><span class="_5nQzY">Kwang Hong Tay recently sold his family’s one-bedroom apartment in Lindfield, to upsize to a townhouse in Asquith.</span><cite class="Zo2UY"><span class="ALMCC">Credit: </span>Brook Mitchell</cite></p></figcaption></figure><p>Tay and his wife considered moving to a larger apartment locally, or a fixer-upper far from public transport, but opted for a new build further out. It was more affordable than some two-bedroom units in his current building.</p><p>Buyer’s agent Rich Harvey, chief executive of Propertybuyer.com.au, said house prices soared during the pandemic, as buyers sought more space, but he expected affordability constraints would tip the balance back to apartments in years to come.</p></div><div class="GJua6"></div><div class="Hy4HP z5wPE" data-testid="body-content"><p>More buyers were having to compromise on property type or size, or by moving further afield, to purchase their first home or upsize, he said. Even cashed-up buyers would be limited to apartments in prime areas.</p><p>“If you’re looking to get into the eastern suburbs ... and your budget is $2 million, then you have to be thinking about buying an apartment. Otherwise, you’re 25 years too late to the market,” he said.</p></div></div><div class="noPrint"><div></div><div></div></div><div class="wuhVx"><div class="_6KG-J" id="dg-membership"></div></div><div id="embedded-feedback"></div><div class="WzQM5 i2lpJ"><section class="frYZg noPrint" id="endOfArticle"><div class="KW19t"><div class="wMz9s"><button aria-checked="false" aria-describedby="saveTooltip" aria-label="Save article to read later" class="lYnY4" role="switch" type="button"><svg aria-hidden="true" class="kTpHl IIE5G" focusable="false" height="1em" width="1em"><use xlink:href="#icon-save"></use></svg><span class="_1UKiw">Save</span></button><div aria-hidden="true" class="GvnJU gD20Q" id="saveTooltip" role="tooltip"><button>Log in</button>,<!-- --> <a data-testid="login-register" href="https://watoday.myfairfax.com.au/channel/cWvEleexy48f-PI5-jlBnw/members/signups/new?callback_uri=">register</a> <!-- -->or <a 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buyers willing to compromise on space can buy into prime pockets of Sydney for a fraction of the cost, but will face a hurdle when it\\u2019s time to upsize.\",\"allowComments\":false,\"body\":\"<p>House hunters prepared to make the switch to apartment living can buy into Sydney\\u2019s prime suburbs for a fraction of the price.</p><p>Unit values in some pricey pockets of the city are now less than a fifth of typical house values, due to a growing price gap between property types over recent years.</p><x-placeholder id=\\\"b674299c496f252926a0409278f4eee8f5d74626\\\"></x-placeholder><p>The widening divide is pushing more buyers to apartments, and keeping them there, as the cost of upsizing locally becomes unreachable for more Sydneysiders.</p><p>More than $7 million separates median unit and house prices in Bellevue Hill and Vaucluse, while units in Bronte, Mosman, Lindfield, Strathfield and Freshwater, cost less than a third of each suburb\\u2019s house median, Domain data for the June quarter shows.</p><p>Sizeable gaps are also seen in comparatively more affordable suburbs like West Ryde, Carlingford and Ashfield. Only suburbs with a minimum of 50 house and unit sales each over the year to June were included in the analysis.</p><p>Greater Sydney\\u2019s house median of about $1,538,000 is almost double the unit median of about $773,800. Five years ago, a typical house cost about 50 per cent more than a unit, but house values have soared since, while unit values declined.</p><x-placeholder id=\\\"43aa636b60bcac0e4f1114cc28b2a77aa232876c\\\"></x-placeholder><p>KPMG urban economist Terry Rawnsley said the biggest price gaps were in well located, often already dense areas, where blocks of land commanded the highest premiums, and apartments tended to be in older blocks.</p><p>The gap was smallest, but still sizeable, in outer suburbs and regions where apartments tended to be larger, and newer and better located than median priced houses.</p><p>It would be easiest to upsize in Riverstone, Terrigal and Marsden Park where houses were about 15 to 25 per cent more expensive than units, while house prices in Penrith and Campbelltown were about 45 per cent more expensive.</p><x-placeholder id=\\\"b8b0166b46f810ce56163a8e1ec33c98b9fb824e\\\"></x-placeholder><p>While few apartment residents, if any, in a suburb like Bellevue Hill would ever have expected to upgrade to a house, it was previously a much more realistic option in other parts of the city.</p><p>Rawnsley said the growing price gap had changed the property journey for Australians, even over the past decade.</p><p>\\u201COnce you\\u2019d buy a two-bedroom apartment, get a bit of equity, maybe have a child along the way and then trade up to a detached house, but now \\u2026 more people have to go to a three or four-bedroom apartment next,\\u201D he said.</p><p>Rawnsley said the gap was likely to widen as big blocks became scarcer, and demand for apartments increased, due to affordability constraints, further driving up prices for blocks with development potential.</p><p>\\u201CAs the population grows, medium density living and apartments are going to become much more common which is bringing us in line [with the] rest of the world,\\u201D he said, adding a diversity of housing was crucial to ensuring more affordable homes and upsizing and downsizing opportunities.</p><x-placeholder id=\\\"1b8d6e05d83140c35ed88b09b787212289df3d1b\\\"></x-placeholder><p>Ray White Upper North Shore sales agent Jessica Cao said apartments in the region mostly drew interest from second home buyers and downsizers, given median unit values topped $1 million \\u2013 for which it was hard to find a decent two-bedroom unit.</p><p>\\u201CUnless they have family help [when it comes time to upsize], they generally can\\u2019t stay in the area, to upgrade to a house they need to move more towards the western part of Sydney or further north,\\u201D Cao said.</p><p>Among those leaving the area is Lindfield resident Kwang Hong Tay, who recently sold his family\\u2019s one-bedroom apartment to move to a four-bedroom townhouse in Asquith.</p><p>\\u201CLindfield is really good, it\\u2019s not too far from the city, about half an hour by train, it\\u2019s close to Chatswood ... but it\\u2019s just the house prices are so scary, houses are up to $4 million to $5 million around Lindfield, so we have to move outward, so we can [afford to] get something with land, and more space for the kids,\\u201D he said.</p><x-placeholder id=\\\"ac680d938f7a051bf5afccd7d44bd76f4f5d035b\\\"></x-placeholder><p>Tay and his wife considered moving to a larger apartment locally, or a fixer-upper far from public transport, but opted for a new build further out. It was more affordable than some two-bedroom units in his current building.</p><p>Buyer\\u2019s agent Rich Harvey, chief executive of Propertybuyer.com.au, said house prices soared during the pandemic, as buyers sought more space, but he expected affordability constraints would tip the balance back to apartments in years to come.</p><p>More buyers were having to compromise on property type or size, or by moving further afield, to purchase their first home or upsize, he said. Even cashed-up buyers would be limited to apartments in prime areas.</p><p>\\u201CIf you\\u2019re looking to get into the eastern suburbs ... and your budget is $2 million, then you have to be thinking about buying an apartment. Otherwise, you\\u2019re 25 years too late to the market,\\u201D he said.</p><x-placeholder id=\\\"66e1b6040340c79686d700035944ab7f9368e39b\\\"></x-placeholder>\",\"bodyPlaceholders\":{\"1b8d6e05d83140c35ed88b09b787212289df3d1b\":{\"data\":{\"displayWidth\":\"CONTENT\",\"url\":\"https://datawrapper.dwcdn.net/VMdi6/5/\"},\"type\":\"iframe\"},\"43aa636b60bcac0e4f1114cc28b2a77aa232876c\":{\"data\":{\"displayWidth\":\"CONTENT\",\"url\":\"https://datawrapper.dwcdn.net/8CiwO/8/\"},\"type\":\"iframe\"},\"66e1b6040340c79686d700035944ab7f9368e39b\":{\"data\":{\"listingId\":\"2018697838\"},\"type\":\"domainListing\"},\"ac680d938f7a051bf5afccd7d44bd76f4f5d035b\":{\"data\":{\"altText\":\"\",\"aspect\":1.5,\"autoCrop\":false,\"caption\":\"Kwang Hong Tay recently sold his family\\u2019s one-bedroom apartment in Lindfield, to upsize to a townhouse in Asquith.\",\"credit\":\"Brook 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