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Property prices: Studio with pull-down bed selling for over $1 million despite tiny floor plan

Australia's most expensive suburb by square metre has a new studio on offer.

Belinda Grant-Geary
·Head of Yahoo Finance Australia
Updated ·4-min read

Having to pull your bed down from inside a cupboard into the middle of your living area, nor the cost-of-living crisis, is enough to put off a property buyer in Sydney offering $1.2 million for a tiny studio.

The classic terrace facade of 1 Goodhope Street in the affluent and highly coveted suburb of Paddington might lead you to believe there’s a house with a couple bedrooms hiding behind there. But it is, in fact, a free-standing studio that spans just 56 square metres.

The leafy suburb was named the most expensive in the country by square metre and block size earlier this year, and appears to be maintaining its reputation, with the studio coming in at more than $21,000 per square metre. That’s based on the highest offer real estate agent Ben Collier told Yahoo Finance had been made ahead of the auction, which is above the median Sydney house price of $1,121,196.

A fold down bed in the living space of a studio in Paddington.
Welcome to the bedroom, kitchen and living room of a Sydney studio (the bathroom is tucked behind that yellow lamp), which is set to sell for over a million dollars. (Credit: The Agency)
The floorplan of a 56 aquare metre studio.
The studio has some outdoor space, something many Sydneysiders don't enjoy, but spans just 56 square metres. (The Agency) (picture alliance via Getty Image)

“It’s difficult to price as it’s a free-standing studio and the only points of comparison are a one-bed home selling in the early one to mid ones [$1 million-$1.5 million range],” he said.

He is confident the cost-of-living crisis won’t stop the home being snapped up and that someone will be able to convert it into a legit one-bedroom.

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“To make it a one-bedroom, the path of least resistance would be to create a mezzanine level across the kitchen. The ceiling is very high and a mezzanine bedroom would retain the living space,” Collier said.

The listing does not advertise the square meterage of the studio - which last sold for $550,000 in 2003 - and describes the pulldown bed as "allowing for flexible living/bedroom".

It's no doubt the location plays into the price given its proximity to the city and the beach.

The house has undergone an extensive renovation - now boasting polished concrete floors and a "bespoke island bench". Previously it was divided into a bedroom, kitchen and living space.

The median house price in Paddington is $3.15 million, with the average rent $1337, according to Corelogic.

The terrace style front of a studio for sale in Sydney with an inset of the kitchen and outdoor space.
Some creative photography allows you to take in the lovely features of the home, but if you look closely on the wardrobe behind the kitchen bench, you can see where the bed folds down from. (Credit: The Agency) (picture alliance via Getty Image)

The home is no dilapidated knockdown, like the four-bedder with a collapsed roof that sold for $1.35 million in Annandale, or the Enmore “hidden gem” with an overgrown roof and boarded-up windows that sold for $1.725 million.

Both houses were ramshackle to say the least but were set on 224 square metres and 227 square metres of land, respectively.

“The thing that appreciates over time is the actual dirt … and where that land sits. And, with growing population and urban density increasing, it means the price of land over time is going to keep increasing,” Domain chief of research and economics Dr Nicola Powell said.

All of the top 10 most expensive suburbs by square metre are in Sydney, according to Domain.

Sydney’s desirability has been driven by strong career opportunities, education, lifestyle, climate and proximity to the beach “despite the high financial costs and often lengthy commutes”, the housing affordability report states.

10 most expensive suburbs by square metre

  1. Paddington $25,755

  2. Tamarama $25,684

  3. Darlinghurst $22,623

  4. Edgecliff $20,551

  5. McMahons Point $20,448

  6. Woollahra $20,371

  7. Surry Hills $20,241

  8. Balmain East $19,246

  9. Birchgrove $18,812

  10. Queens Park $17,655

Outside of Sydney, Albert Park in Melbourne ranked 26th with a value of $13,915 per square metre.

Property prices are racing toward a historic peak. The median price in Australia is $747,424.

However, SQM Research managing director Louis Christopher thinks Sydney will fall as much as 4 per cent next year. He’s predicted the same for Melbourne, while Perth and Brisbane are expected to continue growing in value.

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