Lisa Calautti, Property Journalist
First published 27 Mar 2024, 4:32pm
A prime location close to both the city and beach, as well as a new light rail, has seen young professionals and first-home buyers set their sights on a tightly held and previously overlooked Sydney suburb.
Located about 7km south east of the CBD, Kingsford's blend of suburbia, convenience and character were among the aspects which led buyer's agent Rich Harvey to nominate the suburb in the 2024 realestate.com.au Hot 100, which identifies locations expected to outperform in the year ahead.
“I think it’s got really strong upside potential as its strategically located, within a short 10 minute drive of the eastern beaches, Coogee and Maroubra, and yet it’s still within reasonably close access to the city, and you’ve got the light rail as a fantastic connection,” he said.
“I like the feel of Kingsford as well, it's got a nicer layout and awesome vibe compared to Eastlakes, for example, it’s got a bit of character.”
Public transport adds to Kingsford's appeal, with light rail connection to the city, and buses to the beach. Picture: realestate.com.au
Despite median house prices falling by 5% during the past year to $2.37 million, PropTrack economist Anne Flaherty said prices still remain well above pre-pandemic levels.
“We saw a very significant period of price growth in 2021 in particular, and prices have largely held steady since that time,” she said.
Offering a mix of freestanding homes and high density living, Kingsford is popular with students and families. Picture: realestate.com.au
Median unit prices have performed strongly, Ms Flaherty said increasing 5.9% to $900,000.
“I think one of the most attractive aspects of Kingsford is that location. It’s sort of got it all in a way,” she said.
“It's close to the University of New South Wales, its fast to get to the beach. While it's not a beachside suburb itself, it's just a short drive away and it's also got a lot of access to green spaces for example, golf clubs, and when it comes to connectivity, it's really well serviced by road and rail.
“It’s definitely a suburb that’s going to appeal to everyone from students to families to retirees.”
With the University of NSW attracting students to the area, investors tend to hold properties for a long time. Picture: realestate.com.au
Local agent Theo Felekos from Ray White said traditionally Kingsford predominantly attracted investors for its strong rental return, but in recent times many first-home buyers were looking to the area for the convenience it offered.
“So you're finding a lot of first-home buyers entering the apartment markets, and the family homes have a lot of people relocating for schooling to be the closer to the east without the expensive price tag,” he said.
Mr Felekos said houses that do hit the market sell quickly due to the limited stock.
Read more: The sleepy Melbourne suburb attracting first-home buyers and investors
On the market: This three bedroom home will go under the Hammer in April with a price guide of $1.7m.
Unit investors were also getting more bang for their buck, with median unit rents sitting at about $700 week with yields of about 4.5%, Mr Harvey said.
“I think investors are very much going for the apartments, more than the houses because the gap between your rental payments and mortgage payments are quite small,” he said.
The Prince of Wales Hospital in nearby Randwick was also a driving force behind property demand, Mr Harvey said, in addition to many UNSW Sydney students needing housing.
However, he said demographics for the area were quite mixed.
“You’ve got aspiring homeowners, you’ve got the younger demographic, or as I say the up and coming Generation Y, and the Baby Boomers that are still there,” he said.
“In terms of the actual percentage of owner occupiers, you’ve got around 45% that are owner occupiers in that market.
“You’ve got a lot of big houses for couples, and sort of a younger demographic renting apartments in that area with a view to moving up to getting a terrace or a freestanding home if they can afford that.”
Read more: The charming Brisbane suburb families are flocking to
Strategically placed between the city and the beach. Picture: realestate.com.au
Antonios Kanis from Raine & Horne Kingsford and Kensington said there were many buyers on the hunt for their first home in Kingsford at the moment.
“The other thing is there's a lot of upsizers or downsizers," he said "So, people who want to get the transaction to basically sell from a two bedroom or three bedroom apartment or townhouse to get to their family home, and vice versa the houses to go to downsizer.
“The problem is because there is not a lot of stock on the market they are basically turning around and don't want to do that transition just in case they sell themselves out of the market.”
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