Shrewd property types know a good thing when they see one, and for them Mike Baird‘s mightily contentious lockout laws might as well have been a continuous loop of cash register sounds.
Ever since the strong arm of the Guv’ment swept through Kings Cross and cleared out all the riff raff (and the drinkers, and the people, and the businesses, and just about everything else) the inner-Sydney area has revealed itself as a prime spot for real estate investment.
Apartment owners in Potts Point have seen the value of their properties spike by as much as $150,000, or 25%, in the 12 month period following the implementation of the laws in 2014.
The boost in property values in the area stands as an anomaly for Greater Sydney as well, with prices in surrounding areas either remaining stagnant – or in some cases falling – in the same time period.
The median price for Potts Point properties rose to $748,500 in the 12 months following the lockouts implementation. Meanwhile in nearby Elizabeth Bay, a similar price rise was felt, with properties there copping a 17% increase, up to $785,000.
However, the same can’t be said for commercial holdings in the area. The lack of foot-traffic and virtual blasting out of the whole precinct has seen business rents drop by a whopping 50%, as more and more businesses buckle under the strain of the laws.
The properties are being snapped up by young people, first home-buyers, investors, and professionals, with many restaurants moving into the area now that the nightclub and strip club scene is in sharp decline.
‘Course, those restaurants can’t have big wine lists too near the street, and you still can’t pick up a bottle of cab sav on the way home if your meal runs later than 10pm. But hey, at least that fourth investment apartment is copping a sweet hike in value.
Cheers, Mike.
Source: The Age.
Photo: Luke Reynolds/Getty.
