26 Jun Sydney Apartments -The Cost Of An Extra Bedroom
Sydney apartments represent a dynamic and competitive market where every advantage counts. Therefore, for both property investors and owner occupiers, understanding the cost of an extra bedroom is key. It may change your purchasing decision and overall investment strategy.
The cost of an additional bedroom in a Sydney unit can vary based on location, building amenities, and overall market conditions. The prices fluctuate, especially in sought-after suburbs where demand is high and where securing a property can be particularly competitive.
We research how much you can expect to pay for an extra bedroom across suburbs in the Eastern Suburbs, Lower and Upper North Shore. For Sydney property investors, two bedroom units in Roseville represented the best value of the nine suburbs analysed considering one, two and three bedroom units.
Interestingly, on the Lower North Shore, two-bedroom units in Mosman and Neutral Bay offered the best value, while Kirribilli had the highest median price and price per bedroom. In contrast, on the Upper North Shore, two-bedroom units in Roseville provided the best value, followed by those in Gordon. One-bedroom units represented the least value in Gordon, Roseville, and Killara.
In the Eastern Suburbs, two-bedroom units in Rose Bay stood out as the best value compared to one and three-bedroom units in Rose Bay, Bondi Beach and Darling Point.
Lower North Shore
| Apartment Type | Mosman Median Price | Mosman Cost Per Bed | Kirribilli Median Price | Kirribilli Cost Per Bed | Neutral Bay Median Price | Neutral Bay Cost Per Bed |
| 1 Bed | $780,000 | $780,000 | $909,900 | $909,000 | $749,500 | $749,500 |
| 2 Bed | $1,345,500 | $672,750 | $1,850,000 | $925,000 | $1,232,000 | $616,000 |
| 3 Bed | $2,900,000 | $966,667 | $3,125,000 | $1041,667 | $2,025,000 | $675,000 |
Upper North Shore
| Apartment Type | Gordon Median Price | Gordon Cost Per Bed | Killara Median Price | Killara Cost Per Bed | Roseville Median Price | Roseville Cost Per Bed |
| 1 Bed | $655,000 | $655,000 | $651,000 | $651,000 | $686,500 | $686,500 |
| 2 Bed | $985,000 | $492,500 | $1,090,000 | $545,000 | $922,500 | $461,250 |
| 3 Bed | $1525,000 | $508,333 | $1,600,000 | $533,333 | $1,630,000 | $543,333 |
Eastern Suburbs
| Apartment Type | Rose Bay Median Price | Rose Bay Cost Per Bed | Bondi Beach Median Price | Bondi Beach Cost Per Bed | Darling Point Median Price | Darling Point Cost Per Bed |
| 1 Bed | $875,000 | $875,000 | $1,075,000 | $1,075,000 | $900,000 | $900,000 |
| 2 Bed | $1,267,500 | $633,750 | $1,620,000 | $810,000 | $2,000,000 | $1,000,000 |
| 3 Bed | $3,025,000 | $1,008,333 | $2,780,000 | $926,667 | $3,850,000 | $1,283,333 |
* Cost per bedroom based on the median sale price for the last 12 months’ sales up to March 31, 2024. Realestate.com.au
Navigating Your Options
In the decision-making process, it’s essential to weigh the benefits of one, two, and three-bedroom apartments against their respective costs.
Advantages
One-Bedroom Unit
- Affordability: One-bedroom units are generally more affordable, making them a popular choice for first-time buyers, singles, and investors looking to enter the market.
- Maintenance: With less space to maintain, one-bedroom units offer a simpler, more manageable living experience.
- Rental Yield: One-bedroom units often provide a strong rental yield due to their lower purchase price. They appeal to young professionals and students seeking convenient and cost-effective housing options and do not require finding a roommate.
Two-Bedroom Unit
- Versatility: A two-bedroom unit offers greater flexibility. It can accommodate a small family, roommates, or provide a guest room or home office.
- Resale Value: Two-bedroom units are larger, thereby providing great room for capital growth.
- Investment Potential: The rental market for two-bedroom units is robust, appealing to couples, small families, and professionals looking for extra space without the expense of a larger home.
Three-Bedroom Unit
- Space and Comfort: Three-bedroom units offer more space, making them ideal for families or those needing additional rooms for office space, hobbies, or guests.
- Long-term Living: These units can serve as a long-term residence, accommodating growing families and providing the space needed for a comfortable lifestyle.
- Premium Market Segment: Three-bedroom units often fall into a premium market segment, attracting higher-income renters and buyers looking for a more luxurious living experience.
Compromises and Considerations
When deciding on the number of bedrooms, several compromises may need to be considered:
- Cost: More bedrooms typically mean a higher purchase price and potentially higher ongoing costs, such as maintenance, strata fees and property taxes (if investment unit).
- Location: Budget constraints may force you to choose between a smaller unit in a prime location or a larger unit in a less desirable area.
- Future Needs: Consider your future plans. A one-bedroom unit might suit your current lifestyle, but if you anticipate changes, such as starting a family, a two or three-bedroom unit might be a wiser investment.
- Bedroom Size: More bedrooms might result in smaller individual bedroom sizes. Often, the third bedroom can be significantly smaller than the others.
- Parking: Additionally, the number of bedrooms does not necessarily correspond to the number of available parking spaces, so this should also be taken into account.
Purchasing a unit in Sydney involves a delicate balance between your budget, current needs, and future aspirations. Understanding the cost implications and advantages of different bedroom options can help you make an informed decision. At Premier Home Finders, we are committed to helping you navigate these choices, ensuring you find the perfect property that aligns with your goals and lifestyle at the right price in the right location.
If you are looking to purchase a Sydney property for investment or your next home please contact us today to see how we can assist you in achieving your property goals.
