For property hunters looking for a piece of New South Wales that won’t break the bank, Katoomba could be a good option.
The town, located in the Blue Mountains, is an affordable alternative to more expensive suburbs in or near Sydney.
In Domain’s latest price per square metre report, Katoomba was found to be one of NSW’s most budget-friendly locations. Costing around $1,038 per square metre, the town had one of the lowest prices per square metre in the state. This was also a 0.6% decline in price per square metre compared to last year.
Space versus affordability
The report’s findings are a good example of a much-debated principle of the property market: does space determine price?
In inner-city areas like Paddington and Darlinghurst, where property costs more than $25,000 per square metre, space is limited. But, the demand for homes in these areas is high. This imbalance between supply and demand drives prices up.
“People are willing to pay for less space and pay a higher price per square metre in some of these prime, premium locations in Sydney. They are suburbs that are highly sought after, they are suburbs that people fight to get into,” said Domain chief of research Dr Nicola Powell.
By contrast, in outlying areas like the Blue Mountains, Domain found that having more space translated to greater affordability.
Access to space also plays an important role in creating demand for certain groups of people. In city suburbs, with higher-density terraced houses and apartment blocks, homeowners look for closer proximity to city life in favour of large properties.
There is little available in Sydney that offers family-sized land. As The Demographics Group director Simon Kuestenmacher told Domain, “Many buyers would like a large block of land with greenery and a big house near job clusters with a reasonable commute, but it is out of reach in Sydney now.”
What is the appeal of outlying locations?
Towns like Katoomba, which lie outside of big cities but are within a reasonable distance, offer a range of benefits for buyers.
Their affordability opens doors for buyers who would not have been able to buy in the city. This includes first home buyers and those looking for more value for their money.
Second, the availability of space is appealing for buyers looking for a home for their family, with three- or four-bedroom homes. These properties can also accommodate amenities like swimming pools and larger gardens.
Third, despite being further out, Katoomba is not cut off from the city. Good transport links mean a simple commute to Sydney for those who want it.
Kuestenmacher explained that workers, particularly of millennial age, are willing to work remotely part of the week and have a longer commute into the city for the rest of their workdays. This is instead of living close to or in the city in smaller properties.
Finally, access to amenities in smaller outlying towns is often a concern. But, established towns like Katoomba do not have this problem. They are well-equipped with shops, schools and healthcare options. The Blue Mountains in particular, offer homeowners access to outdoor activities not readily available in the city like climbing and hiking.
Buying in Katoomba
Katoomba is one of NSW’s most affordable locations to buy. It offers affordability, spacious living and good access to amenities. It is a good example of a town well-situated near a city but without the city price tag.
Just Imagine Finance can help you buy a property in Katoomba or elsewhere in the Blue Mountains. To discuss your options, contact us on catherine@justimaginefinance.com.au or 0414 673 359.
