Redfern’s
property market looks set to continue to grow with the implementation of the
urban renewal projects in the area.
According to Mr Walter Burfitt-Williams, real estate agent
at McGrath Eastern Suburbs, the impact of the projects is substantial.
“It is huge. In an inner city urban area there hasn’t been something like this in a long time. It is
one of those grand plans and people are waiting to see what happens – it’s a stage by stage project.
“The [inner-city] market is really the strongest it has
been in a year and a half Redfern particularly, we have had an extraordinary
run just recently. We are selling everything we can at auction,” he said.
Mr Steve Tamas, of PRD Nationwide Real Estate, sees it
differently. He said prices have dropped over the past 18 months, with the slow
commencement of the urban renewal projects having no impact as yet. “The
Redfern Waterloo Authority should have a reasonable impact on the property if
they get things happening. But nothing’s
happened,” said Tamas.
The plan to create a business arid technology park and $20
million upgrades of both Regent and Redfern Streets and Redfern Park
are just some of the proven set to boost the area and its image..
The construction of a new building at Australian Technology
Park, due to begin early
in 2006, is expected to boost the local economy.
Statistics obtained from McGrath between August 2004 and
July 2005 show the average median price for a house in Redfern rose from
$487,000 to $515,000, compared to the City of Sydney which in that time rose by only
$23,000.
While Redfern is posting higher growth, its start from a
lower base shows it is just catching up on the housing prices of inner-city neighbours.
In January and March this year, Redfern recorded prices
higher than average City of Sydney
sales.
Of the streets in highest demand, the eastern end leads the
way. Both Tamas and Burfitt-Williams are in agreement that Great Buckingham,
Telopea, Kepos, Marion, Pitt and Baptist Streets continue to show the greatest
growth in prices and interest.
“But if you go down to Eveleigh Street. forget it.” Tamas
said.
Burfitt-Williams said the image of Redfern has undergone
significant change over the past few years, progressing from a low socio-economic
city hub to a hip and funky inner-city area.
“It certainly has gentrified quite a bit. There are
certainly a lot more funky cafes, a café-gallery type culture and restaurants
that might not have been there five years ago but are really just emerging.
“The Bank
Street precinct in east Redfern has certainly
given the area a kick along,” he said.
But for Mr Brett Ozanne, of Laing and Simmons in Redfern,
reputation continues to be a factor.
“It has been an area where reputation has outweighed
past and current sale figures, where some buyers and old time residents have no
idea [of ] the value on properties.
“[But] the area’s
proximity to the CBD makes it attractive to both home owners and investors
alike,” he said.
Despite added interest in the area, growth has remained on a
consistent level over the past two years compared to the rapid but ultimately
slowed growth of near neighbour Alexandria.
“Redfern and Redfern East always had a more solid
foundation. It has held its own in value despite recent events and that is in
part due to the rejuvenation of the area,” Burfitt-Williams said.
At the market’s
healthiest houses in Pitt Street
have fetched over one million dollars.
More and more people are going into the area and see what it
is like. And a lot of people have asked how it is going, especially as they
hear so many conflicting things,” Burfitt-Williams said.
While not explicitly mentioning the urban renewal projects when
discussing the area with clients, Burfitt-Williams does point to the Redfern
Street refurbishment, shopping precinct and court house as evidence the area is
receiving a face lift.
“People are generally professionals who are buying into
the area. People who could afford Paddington or Bellevue Hill but just love the
area and stay,” he said.
In contrast, Tamas finds buyers are generally drawn from the
area. “Most owner-occupiers lived in Redfern or surrounding areas,”
he said.
But image is still an issue for many considering a move to
Redfern.
“The problem seems to be people’s
perception of Redfern. Their perception has always been of a lower class,
semi-Indigenous area and it’s going
to take a long time, for whoever takes it on, for that to change. It’s not going to change overnight,” Tamas said.
But Tamas, Ozanne and Burfitt-Williams all agree the area will
rise up and in terms of the projects, the best is yet to come.
“I would forecast an increase of up to 10 per cent for
units and 15 per cent for semis and terraces in the area in the next 12 months.
The urban renewal plans and master plan will attract more professional industry
and increase demand for housing in the area” Ozanne said.
“The area’s
proximity to the CBD makes it attractive to both home owners and investors
alike.”