Property investor lens on Potts Point 2011
Potts Point is one of Sydney’s most architecturally significant suburbs, with its housing stock ranging from heritage-listed mansions to Victorian terraces and modern apartments. With the CBD, great shopping and a stack of entertainment venues on its doorstep, property investors should definitely keep an eye on Potts Point.
Potts Point history
Potts Point is a harbourside peninsula two kilometres east of the Sydney CBD. It’s here you’ll find enigmatic Kings Cross, not technically a suburb, with exclusive Elizabeth Bay to its east. Potts Point was the nation’s first deliberately designed suburb. It was named by banker Joseph Hyde Potts, who bought 6.5 acres of harbourside land here in the early 19th century and renamed the area Potts Point.
Potts Point has always been a sought-after suburb, where only the rich and famous could afford a home overlooking Sydney and its beautiful harbour. This is reflected in the spectacular 19th-century Georgian mansions that remain today, including Rockwall and Tusculum, now home to the NSW chapter of the Australian Institute of Architects. Kingsclere, on the corner of Macleay St and Greenknowe Avenue, is a standout for apartment living, with huge European-style apartments. Built in 1912, Kingsclere was owned by the Albert family (who also owned Boomerang in Elizabeth Bay and have run a music business for 140 years) until it was converted to strata title in the 1990s.
Potts Point and its ‘state of mind’ neighbour, Kings Cross, has long been a mecca for creative people, from Henry Kendall in the 19th century to locals today who include, among many, singer Marcia Hines, former actress Kate Fitzpatrick, playwright Louis Nowra, writer Mandy Sayer and celebrity newsreader/gardener, Indira Naidoo.
Potts Point suburb review and lifestyle
Besides glorious mansions, Potts Point’s housing stock consists of Victorian terraces, interwar buildings, modernist apartments and Australia’s highest concentration of Art Deco architecture. Victoria Street is famous for its terraces, notable for the campaign to save them in the 1970s and the disappearance in 1975 of one of the campaign’s prominent activists, Juanita Neilsen.
At the turn of the 21st century, Potts Point underwent rapid gentrification. Developers acquired most of its hotels and transformed them into apartments, which are now occupied predominantly by professional singles and couples.
Today, Potts Points is known as one of Sydney’s premier entertainment precincts, thanks to the plethora of restaurants, pubs, cafés and boutique bars lining its historic streets. Although the area doesn’t have the buzz of ten years ago, the offerings cater more to local needs.
Potts Point also offers great shopping, from antique markets to boutiques and a popular Saturday farmer's market.
Together with several gyms and plenty of open space for dog-owning residents, Potts Point offers an attractive and active lifestyle. Plus, due to its proximity to the CBD, many Potts Point residents forgo cars and opt for public transport, in the form of buses or trains from nearby Kings Cross Station.
Property values and yields in Potts Point
The median price for a Potts Point home is currently $4.15 million. With a rental income of $950, this equates to a 1.19% increase in rental yield.
Meanwhile, the median unit price is $880,000 and the average rent is $460. This translates to a 2.69% increase in rental yield.
Capital growth in Potts Point
Over the past 12 months, Potts Point property investors enjoyed capital gains of 16.96%. This upward trend is promising and higher than average, as over a 10-year period investors obtained 8.81% capital growth on their Potts Point property.
Need help managing your Potts Point investment property?
Why not give us a call at Vogue Property? As Inner West property management experts, we understand what renters are looking for and can help you with tenants and everyday management so you have peace of mind. See our recently rented properties in Potts Point to get a better idea of what’s available.
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