City property price is right for families

Inner-city suburbs have caught the attention of families looking to lay down roots as prices fall.

‘Surry Hills is quite an intersection of society’: Cathy and Richard Crighton are selling after two years of renovation. Picture: John Feder

A slew of inner-city suburbs has caught the attention of families looking to lay down roots closer to the city now that prices have ­become more affordable.

New data from property classifieds site Realestate.com.au shows demand for mid-range homes in the inner rings of Melbourne and Brisbane is on the rise as prices stabilise and credit becomes cheaper and more relaxed.

A general trend to ditch the backyard in favour of accessibility to work, schooling and the city is also a contributor.

In Sydney, the arty inner-city terrace houses of Newtown and Surry Hills were hot, but it was Dee Why, Baulkham Hills and Narraweena that drew the most hits on the property listings website. In Melbourne families were attracted to South Yarra, Carlton, St Kilda East, South Melbourne and Northcote.

Realestate.com.au chief economist Nerida Conisbee said prices were finally meeting the demand in the market.

“Those inner areas have ­become more affordable. What we found during the time the market was red hot was very few people were looking at what are considered premium suburbs,” Ms Conisbee said. “The interest rate drop means people can ­potentially borrow more or not have to pay as much back on the loan. That does seem to lead to an increase in consumer activity.”

Historically low interest rates following the recent 0.25 per cent rate cut and the proposed relaxation of lending conditions by regulators is making it easier for buyers to get into the market.

According to demographer Bernard Salt, the changes have also enabled city-dwelling hipsters to upgrade as they age and start families.

“The inner-city hipster now has a family but doesn’t want to move from the city,” Mr Salt said.

“They are led by Gen X and millennial parents in their late 30s and 40s moving from an apartment into a family home.

“It’s an employment decision driven from a cultural attachment to the city.”

Demand was assessed based on the number of views per listing on realestate.com.au in the six months to May for mid-priced suburbs for each market.

Richard and Cathy Crighton are selling their Surry Hills property after an amazing two-year renovation that took it from a dump to a beautiful family home. Initially planning to move in, they have decided to pass it on to a family in the area.

“Surry Hills is quite an intersection of society,” said Mr Crighton. “The thing we really liked about the spot is there is quite a lot of green space around and that it is close to schools.”

In Brisbane, the city’s northside proved more in demand with families. Paddington topped the list, closely followed by Toowong, Wilston and Windsor. Only Highgate Hill and Dutton Park were noted in the inner-city ring on the south side of the river.