Get clear of the big cities and property’s on fire

Celebrity agent John McGrath is banking on a spate of real estate price rises in rural areas as city dwellers flee.

‘We are doubling the space we had’: Zoe Lamont with Blake 9, Hayden 10, and Asher, 7, outside their new home in Haberfield, in Sydney’s inner west. Picture: Britta Campion

Celebrity agent John McGrath is banking on a spate of real estate price rises in rural areas as city dwellers flee the big smoke for cleaner spaces, while lux­ury­ house vendors, particularly in leafy ­garden suburbs, will also benefit.

The shift is highlighted in the annual McGrath Report, a snapshot of the property market in the eastern states.

Mr McGrath said the vendors of Sydney houses with price tags of more than $3m (or $2m in Melbourne and more than $1.5m in Brisbane) stood to benefit as the COVID-19 crisis had inner-city residents reassessing their life­styles, sending apartment dwellers to garden suburbs and rural areas in a bid to escape the pandemic. There is a caveat, however.

Mr McGrath said the outcome of the US election and how it was received by Wall Street would have a bearing on Australia’s stockmarket and thus the local real estate sector next year.

“The other part of the reason the market is performing so well is the lack of stock,” he said. “When we speak to our offices in Bowral, Byron Bay, Newcastle and Port Macquarie, the number of inquiries from Sydney and Melbourne people is incredible.”

He said a Newcastle house had recently sold for $2.2m to a Melbourne buyer, sight-unseen.

Mr McGrath’s top regional picks include Thirroul, 70km south of Sydney, as it appealed to tree-changers and sea-changers.

“Everyone knows Palm Beach and Terrigal (as holiday hotspots) but most people have not heard of Thirroul, and it is significantly cheaper than those two,’’ he said.

“It’s a classic for a sea- and tree-change as it’s positioned where the coast meets the mountains. A lot of people will swap a big home in the city for the Illawarra or other areas within 90 minutes’ drive such as the Hunter Valley, central coast, the Blue Mountains and the southern highlands.

Mr McGrath, the founder of McGrath Estate Agents, said his offices had never seen such region­al demand.

In Sydney, his top picks include Homebush, 15km west of the CBD, given WestConnex had ­reduced travel times to Sydney Airport by 25-30 minutes, as well as inner-western Haberfield, Rouse Hill, 43km northwest of the CBD, and Collaroy, on the northern beaches. He said working from home had made Collaroy more popular as residents without a work commute no longer had to “wrestle with the Spit Bridge’’.

Digital marketing agency client­ manager Zoe Lamont has just forked out $2.08m for a large house in Haberfield through McGrath agent Michael Tringali.

 

“We are doubling the space we had in (neighbouring suburb) Leichhardt and then some,’’ Ms Lamont said. “Lots of places in Leichhardt are under 300sq m — we are sitting on 440sq m. That is small for Haberfield: most blocks are 600-700 sq m”

She said it was important to get a bigger block as her school-aged kids grew. “Haberfield is a beautiful heritage suburb, with tree-lined streets, great-quality delis and bakeries on the main strip.”

In Victoria, Mr McGrath said, the strongest regional markets were Geelong and Ballarat, given median house prices had jumped by 25 per cent since 2017. ­Geelong’s median house price was now $555,000, while Ballarat’s was $415,000, compared with Melbourne’s median house price of $802,551 as of June 30.

Mr McGrath also likes the ­Victorian regional township of Kilmore, with a median house price of $443,750 — about 45 per cent cheaper than Melbourne and offering young families a country lifestyle within commuting distance of the Victorian capital.

Closer to the Melbourne CBD, he liked Thornbury, 7km north of the CBD: it is $200,000-$350,000 cheaper than its neighbours Northcote and Fitzroy North but still has great city access.

In Queensland, Mr McGrath plumped for Sunrise Beach in the Noosa area, which was about 45 per cent cheaper than some of its more famous neighbours.

“However, things are changing, with original beach houses being renovated and new listings becoming scarce due to its relative affordability, the appeal of its comfortable beach lifestyle, surf scene and proximity to Noosa National­ Park,” he said.

Redland Bay, in Brisbane’s bayside, was one of his favourite places in that capital, ­despite being 45km from the CBD. “It has a country town vibe with city amenities,” he said. Houses there typically sold for about $550,000.