How Sydney Buyers Are Sending Blue Mountains Real Estate Prices Soaring

Cramped during lockdown and with no pressure to commute, many Sydneysiders are buying up Blue Mountains real estate. 75% of buyers are from Sydney, reported one local agent in the Blue Mountains Gazette.

Residz Team 3 min read

Cramped during lockdown and with no pressure to commute, many Sydneysiders are buying up Blue Mountains real estate. 75% of buyers are from Sydney, reported one local agent in the Blue Mountains Gazette. In 2019 it was 60%. With no sign of slowing, and already double digit price increases, it won’t be long before this once affordable treechanger option is out of reach for many. Will cashed-up lifestyle-seekers and investors send prices skyrocketing even further?

Price of real estate in the Blue Mountains

While still cheaper than popular lifestyle suburbs of Greater Sydney, Blue Mountains real estate has been a boon for sellers in the past year. Wentworth Falls lifted 28% to a median price (the midway point of all the houses/units sold) of $835,000. Leura and Glenbrook lifted about 18%. The median price in Leura is now $949,000 and Glenbrook $1.14million.

This compares with Sydney’s median house values rising by more than 21% to $1.01 million. (As an aside, the biggest jump has been at Lightning Ridge - in 12 months its median price jumped nearly 264% - but its median price is still low at $120k. Coastal properties also performed strongly with Northern Beaches real estate in Dee Why lifting 33% and Curl Curl 31%. NSW South Coast areas like Culburra Beach rose 35%). Lifestyle has become a luxury even in the further reaches of Sydney and NSW.

The diverse towns of the Blue Mountains

Blackheath, Leura, Wentworth Falls, and Katoomba are well known tourist spots, but there are dozens of main towns and villages in the City of Blue Mountains. As well as the three above, Blue Mountains towns include: Bell, Blaxland, Bullaburra, Faulconbridge, Glenbrook, Hawkesbury Heights, Hazelbrook, Lapstone, Lawson, Linden, Medlow Bath, Mount Irvine, Mount Riverview, Mount Victoria, Mount Wilson, Springwood, Sun Valley, Valley Heights, Warrimoo, Winmalee, Woodford, and Yellow Rock.

Buyers can use free tool Residz.com to understand the layout and personality of each town. For example, when they type in Yellow Rock they see sparsely-scattered homes on acreage. Hazelbrook, on the other hand, has large suburban house blocks and plenty of cul-de-sacs. Finding homes that fit their property wishlist is a good start to any buyer’s journey.

Who’s buying Blue Mountains real estate?

Being less than an hour from Sydney, the Blue Mountains was always an affordable option for budget-conscious families and young professionals. COVID-19 has broadened the appeal beyond retirees and tree-changing creatives as remote and hybrid work completely removes the daily commute. The Blue Mountains attract over four million visitors per year, which means jobs in hospitality and tourism when borders reopen, restrictions ease, and locals can once again visit.

The charm factor of Blue Mountains property

Apart from bush walks and rock climbing, there’s a thriving array of shops and restaurants, garden villages, and unique attractions like the ravine-crossing Scenic Skyway, and the steepest passenger railway in the world, the 52-degree-incline Scenic Railway. A good selection of “Instagram-worthy” cottages and diverse real estate options, good rental returns, clean mountain air, a rich history, plenty of culture, and a sense of community are just some of the reasons buyers are moving to the Blue Mountains.

Pandemic restrictions when buying or selling Blue Mountains real estate

The NSW Government has the latest advice on restrictions around buying and selling real estate in the Blue Mountains. If you are inspecting a place outside a certain kilometre limit, you may need to apply for a travel permit. Buyers must have an intention to live in the property, and right now you can’t inspect a property as an investor. For those unable to visit, Residz.com can (at no cost) offer information about the neighbourhood, crime statistics, demographics, traffic, schools, and more.

Summary

Blue Mountains real estate is as hot as the theories from Darwin’s 1836 visit there were to become. Back then, Sydney was also in a property boom. Darwin wrote in his diary: “..every one complains of the high rents & difficulty in procuring a house.” He observed: “The whole population, poor & rich, are bent on acquiring wealth.” From the boutique village of Leura to busy Katoomba or scenic Wentworth Falls (where you can do the Charles Darwin Walk), property buyers are certainly hoping they’ll gain wealth from securing homes just an hour’s drive to Sydney. As a result, Blue Mountains real estate is experiencing double-digit house price growth, with population projections expecting an increase of 4,750 people by 2041.


Image source: https://www.bluemts.com.au/8535/endellion/#gallery