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First home buyers are being priced out of their preferred suburbs and are finding the nearby suburbs to be an attractive alternative, according to leading agency Colliers.
First home buyers are being made to choose from the suburbs surrounding their ideal location as the Sydney market prices them out of their preferred locations.
The emerging trend, which has been referred to as a “postcode pivot”, sees buyers purchase units in the neighbourhoods surrounding major precincts as they offer more affordable apartments.
National director – residential at Colliers, Blake Schulze, said that with Sydney home prices hitting record high, first home buyers are being forced to consider alternatives.
“First home buyers are finding it increasingly difficult to secure a foothold in their preferred suburbs,” Schulze said.
Schulze said that while major precincts continue to attract strong interest with their transport links and amenities, the higher prices are turning buyers towards nearby options instead.
“We’re now seeing lesser-known neighbouring suburbs gain momentum as affordable alternatives.
“These areas still offer great connectivity and lifestyle appeal, but at an accessible price point.”
One suburb that is benefitting from this trend is the Western Sydney hotspot of Granville that acts as a well-connected “pivot” to nearby Parramatta.
A recent analysis of REA Group data by SuburbsGuide saw the suburb rank as Sydney’s 25th most affordable, with Granville in just 4 per cent of Sydney suburbs that have properties priced under the $550,000 mark.
According to data from realestate.com.au, Parramatta’s median unit price is $620,000, while Granville sits at $519,500, making it a significantly cheaper alternative.
The popularity of Ellipse Property’s East + Cowper development reflects the growth of the Granville area, with 35 per cent of the project’s units being sold to first home buyers.
Schulze said that growing demand for units in the area shows that buyers are capitalising on Granville’s affordability.
“Granville presents the rare chance for buyers to secure an apartment at a significantly below-median price” Schulze said.
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