Sandringham’s beaches and village amenities are a major draw card for buyers.
As of 2011, Melbourne’s Sandringham had a population of 9,309. There are 3,885 private homes in the suburb, with an average of 2.5 people per household. The median weekly income in 2011 was $1,836, with a median monthly mortgage payment of $2,500 according to the Australian Bureau of Statistics.
According to RP Data, the median house price in the suburb was $2,100,500 for May. April saw a median house price of $1,625,000.
The suburb’s median house price dropped in 2012 (by 10.1%), as it did to a lesser extent in the neighbouring Hampton in the same year. Both suburbs saw a recovery in 2013, with Sandringham’s median house price up 8.1% in 2013. The median unit price was $525,000 for May.
This home at 6 Keats Street in Sandringham (pictured below) is currently on the market, with price expectations between $2,100,000 and $2,200,000.
The four bedroom art deco home with a pool is marketed by Jenny Dwyer and Warren Smith of Hocking Stuart Sandringham. Set on a 757 square metre block, the renovated home with a pool is within walking distance of the beach and Sandringham station.
Paul Bond of Hodges Real Estate Sandringham says the suburb offers a diverse blend of properties.
“Sandringham has a variety of housing styles,” says Bond. “Art deco homes, Edwardian properties and Californian bungalows are all well sought after by families.
“In addition, the area has a number of more modern townhouses, semis and terraces as well as luxury apartment blocks and courtyard properties which are popular with the older residents. The area has a number of quiet streets which offer the perfect piece of suburban life.”
With solid year on year growth, Bond believes that Sandringham is a suburb to consider for investors.
“However, there is a high demand for property in the area so it pays to know what you are looking for and possibly consider properties that need some renovation as a more affordable way of gaining a foothold in the area,” he advises. He also notes the rise of rental properties in the area.
“Renters make up almost a quarter of the property market in the area - a number which has increased in the past five years,” says Bond.
“This makes investing in the buy to let market in the area a good decision with average rents yielding $400 per week for a unit and $795 per week for a home.
Bond says that the beachside lifestyle drives demand for the suburb.
“Health and fitness enthusiasts are attracted to Sandringham as it offers a perfect environment for a healthy outdoor lifestyle. With almost a quarter of the area being made up of green space and parkland, residents can often be found running, walking and cycling along the foreshore,” says Bond.
The suburb is also home to golf courses, the Sandringham Yacht Club and the Sandringham Football club.
According to Bond, Sandringham’s village lifestyle also makes the suburb popular with residents.
“The main retail area is around Station Street and offers an array of cafes including the kitsch, Cuppa Cottage, a quirky café popular with the local parents for its babycinos and homemade cakes,” he says.
“The area also has a number of restaurants and takeaway shops as well as independent bookstores, toy shops and speciality food stores which are in keeping with the village lifestyle.”
Located 16 kilometres from the Melbourne CBD, Sandringham has a train station that can get residents to the city in just under half an hour. Schools in nearby suburbs such as Brighton Grammar, Firbank, Xavier, St Leonard's, Star of the Sea, Haileybury College and Mentone Girls' Secondary College are also an attraction for buyers.
Bond advises investors to remember the fundamentals if they are considering an investment property in Sandringham.
“When buying to rent it is important to consider location, location, location to secure maximum return on investment. For example ensuring your property is within a few minutes walking distance to transport and shops and in the catchment area of good schools will make it more desirable than competing properties as these are often fundamental requirements for potential renters,” he says.