From humble beginnings of $10 poker bets to property investments into the millions, a blue chip’s worth has increased significantly over the years.
A nod to the high value of a blue chip in poker, the term was first embraced by the securities industry to refer to highly reputable stocks with a record of paying stable or rising dividends. Classifying a good investment as ‘blue chip’ has since been adopted by just about every other industry, but in real estate, it’s become somewhat of a golden rule. Not blue chip? Not worth it.
So, what makes a ‘blue chip’ suburb, and where are they? Essentially, a property can rarely be painted with the blue brush of approval unless it’s located within a highly-sought after suburb where there’s strong and ongoing demand. This is a key qualification of blue chip properties, as while other signifiers can change over time, a property’s location remains fixed.
Blue chip suburbs boast a history of sustainable property value growth, remaining for the most part unscathed by the highs and lows of the market cycle. Most areas of Sydney’s Eastern Suburbs fall into this category, such as Bronte, Rose Bay, Vaucluse, and Queens Park.
Furthermore, blue chipurbs (not a thing? Is now!) are places everyone wants to live. The demand isn’t just from one demographic or investor, but from a diverse cross section of the buying public. These areas are often found within close proximity to the CBD, with access to public transport and amenities like shops, restaurants, and public parks. Usually they fall within the best school catchment zones, too. That’s what makes buying in these suburbs a safe, steady, and low risk investment—AKA, a blue chip buy.
Blue chip properties come in all shapes and sizes, be it a classic family home in established areas like Balmain, Mosman or Cremorne, or a heritage listed terrace in Paddington. Some boast breathtaking ocean views or direct beach access, while others sit on the harbourfront. While they come in many forms, they share one important similarity—they can only be found in a desirable suburb where property is in high demand but not readily available.
Which brings us to the popular misconception that to snap up a blue chip property, you have to be able to afford a mansion in Point Piper. But it doesn’t matter how many rooms or butler’s quarters a property possesses, it’s all about location, location, location. A one-bedroom unit with just enough outdoor space to balance on one foot (affectionately dubbed a Juliet balcony in the biz) can still reach blue chip status if it’s situated in an aspirational suburb with buyer/market desirability and part of a limited stock.