Darlinghurst in high demand

Buying a home in Darlinghurst is proving a popular choice, with a recent report naming it the best performing real estate suburb over 2012.

The latest quarterly report from the Real Estate Institute of NSW revealed house prices in the area have increased to a median of $1.06 million.

Greens Councillor Irene Doutney said the price increase is unsuited to the area.

“I find it ironic to see these terraces, which once housed poor renters and shared house groups, now being sold to the wealthy and elite. Three generations of my family lived around Darlinghurst and the inner city, but now it would be totally beyond the budget of anyone in my family,” she said.

The historic terrace house market in Darlinghurst is currently worth $1.3 million per property.

“It is not suprising that areas like Darlinghurst – being so close to the CBD and the vibrancy of city life – are now the most expensive in Sydney,” said Ms Doutney. “This sort of gentrification has happened in all major cities in the world.

“Another great danger for inner city suburbs is the pressure to redevelop these old terrace sites that are not protected by a heritage listing.”

Sydney is experiencing price increases across the board, after being named the third most expensive city in the world in a report by The Economist Intelligence Unit, who analyse the worldwide cost of living index.

“The financial growth of the area also highlights the growing gap between the rich and the poor within the city, and the number of homeless people who congregate in nearby areas is a stark reminder of this social gap,” said Ms Doutney.

Member of the 2010 Darlinghurst Business Partnership, Sue Ritchie said the creative flavour of the area was popular with home buyers.

“Prices are expensive all over Sydney. Darlinghurst is an old favourite because it has that wonderful Oxford St spirit of independence and creativity. I can imagine real estate going up residentially, but in terms of commercial retail it’s very difficult to imagine a booming market with the increasing competition of Westfield at either end of Darlinghurst,” she said.

Ms Ritchie has owned the Beauchamp Hotel on Oxford St for over 10 years.

“The suburb continues to be more gentrified which would reflect these increased property prices; however, despite the cost, I believe it has maintained that wonderful diversity it is famous for,” she said.