In our recent interview with Josh Crealy, Partner at Highland Property Agents, Josh called the Sutherland Shire “Sydney’s best kept secret”.
In this blog post, we take an in-depth look at why Sutherland Shire real estate could pose a true property gem for developers and house hunters alike.
Sutherland Shire: Unlocked Potential
With a population of more than 200,000, Sutherland Shire is made up of such prestigious suburbs as Cronulla, Miranda, Sutherland, Caringbah, and Kareela. Thanks to its beautiful beaches and fine lifestyle, Cronulla was recently nominated one of the most liveable cities in Sydney.
The Sutherland Shire boasts Botany Bay to the north, Waterfall to the south and Pleasure Bay inland, making it a neighbourhood of renowned beauty within easy proximity of the Sydney CBD.
The train ride from Sutherland to Central Station is just 30 minutes, but this could be made even shorter should the express Sydney metro line to Hurstville be extended. Likewise, with the area just 25km from the CBD, the proposed “Southern Connector” joining the M5 to the M1 could substantially improve car travel times to the city.
Not only is it within easy reach of the city centre, Sutherland Shire also offers enough amenities for its residents to never need leave the area. There are renowned hospital precincts, one of the biggest Westfield shopping centres in Australia, and a score of reputable public and private schools on offer.
Sutherland Shire also offers an incredible outdoors lifestyle opportunity, with great wind and kite surfing conditions in Botany Bay and paddle boarding, water skiing, kayaking, sailing, and wakeboarding all possible on the Port Hacking waterway.
Then there are plenty of surf breaks on the Shire’s waterfront, and acres of the Royal National Park for cyclists and bushwalkers to explore.
Thanks to its easy commutability and access to quality beaches, Sutherland attracts a relatively young demographic, with the average age of residents sitting at just 29 years old.
The State of the Property Market
Sutherland Shire has enjoyed a buoyant market since about 2013, although it has slowed down slightly in recent months.
Despite this, you can still expect moderate growth for the district in the medium term, with property prices still performing above Sydney’s average. Those with proximity to amenities or ocean views are likely to do particularly well.
Sutherland Shire is a diverse region, with houses still dominating some suburbs such as Como, while others, such as Sutherland and Cronulla are increasingly populated with apartment blocks.
As you would expect, there’s been a growth in the number of waterfront mansions, with a $30 million, 6-storey mansion in Woolooware Road winning the HIA Home of the Year in 2016.
The median house price sits at about $1.2 million. That’s a price change of almost 13% year on year. Units are bringing in almost $660,000.
With limited supply, many properties sell before they even go to auction. Last year, Sutherland Shire achieved an auction clearance rate of 95.7% in one weekend, making it the nation’s hottest market.
Almost 20% of Sutherland Shire residents rent their properties, with median house and unit rental rates sitting at $700 per week and $480 per week respectively. Rental yield is 3.05%.
Why Is It Booming?
A better question perhaps is why it didn’t boom earlier. Sutherland Shire offers stunning beauty, a thriving lifestyle and vibrant community, and all the amenities any resident would need.
Sutherland Shire real estate prices are set to grow, thanks to the sustained level of strong demand with few listings available. Combine this with new development projects and renovations in the works and Sutherland Shire is a market everyone wants in on.
The demand for property can be attributed to a variety of reasons, not least of which is that people have discovered that they can enjoy all the same amenities and lifestyle options in Cronulla as the eastern suburbs or the northern beaches - without the price tag.
There’s still plenty of desirable, yet relatively affordable, real estate along Port Hacking River, Georges River, Botany Bay, and the coastline between Cronulla and Wanda. And considering the rate of growth in the area, buyers can expect above-average capital growth on their investments.
In the years to come, Sutherland Shire will undergo rapid change as rezoned areas (especially along the train line) start to see higher density living and greater compliance with development standards.
The Sutherland Shire property market is by no means the bargain deal it was several years ago, but it still remains an affordable and rewarding investment opportunity for property developers as well as mum-and-dad investors.