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Thornleigh is a suburb located in Greater Sydney as is ranked 14th best in the region of Northern suburbs within the South Wales State. It is 22 kilometres away from Sydney’s local government area and its central business district. The suburb was established in the 1830s. Its population as of 2016 stood at slightly over 8,000 people with a population density of 2,120/km2 in an area of 4km2. The suburb is surrounded by five other suburbs. These are Pennant Hills, Westleigh, Normanhurst, Hornsby, and Wahroonga. Thornleigh’s age distribution echoes the rest of Australia’s. Children under the age of 15 years constitute 21% of the population, whereas senior citizens (65 years and above) made up 14% of the same. The median age of residents in Thornleigh is 39 years of age. 66% of the suburb’s population are professionals and earn a weekly household income of slightly over $2,200.

The suburb is ideal for families with children, singles, country lovers, professionals, and retirees. The area has excellent parks and recreational facilities. The local sports clubs have different sporting divisions. Skateboarding and golfing areas are also available in the suburb. The suburbs contain both industrial and commercial areas set aside from residential areas. Additionally, it has an excellent public transportation system making it easy for residents to move.

In terms of real estate, the values of house prices have grown by 12% in the last three years, while unit prices have increased by 8% within the same period. The average rental price per week stands at $590, with a return of 2.33% (Homesales, 2019). Similarly, units are rented at $580 with a 3.57% rental return. It takes an average of 42 days and 53 days to sell a house and unit in the suburb, respectively. Last year, 12 units and 63 houses were sold in the suburb with houses sold at a median price of $1,253,530 and units $872,193 (Homesales, 2019). The main sales competitors that Flounder and Associates real estate agents are likely to face competition from are Ray White and Elders.  A possible office location in Thornleigh is  32/2-10 Central Avenue Thornleigh NSW 2120

Hornsby NSW 2077

The suburb is located in the upper north shore of Sydney in the state of South Wales. It is Hornsby Shire’s administrative center, and it is located 25 kilometres from Sydney’s central business district. The suburb’s main landmarks include the Hornsby RSL Club, the Odeon Cinema, Hornsby Water Clock, and Hookhams Corner. The suburb also has several heritage listings such as Mount Wilga House and Hornsby War Memorial. Transportation from Hornsby to Sydney’s central business district is 24 kilometres by road and 25 kilometres by train. The suburb has an excellent bus and train networks.

Like any other suburb, Hornsby has both commercial and residential areas separated. The town center represents the commercial area with the western side having a traditional shopping village, a police station, and the courthouse. The eastern side has an event cinemas multiplex, several restaurants, a food court, a shopping center, and two department stores, David Jones and Myer. The north-western side represents the industrial side of the suburb. The suburb’s residential areas are located on both sides of the railway line with low and medium-density housing dominating the region. Most of the houses on the western side of the railway line have proximity to the Lisgar gardens and national parks, giving the bushy landscape suitable for country lovers. In recent years, high-rise apartments have become popular as the state laws accommodate medium to high-density housing development next to transportation amenities.

The population of the suburb as of 2016 stood at slightly over 22,000, with 49% male and 51% female. The median age within the suburb stands at 36 years. The population is a multicultural one with Irish, Indian, Chinese, Australian, and English ancestries, all having their roots in the suburb. The residents have an average income of $892 (Homesales, 2019). The house prices within the suburb over the last three years have seen a 16% growth, while unit prices experienced a 5.35% growth within the same period. The rental income return stands at 3.08%, with the average house rented at $525 a week. For units, the median rental price is $460, with a return of 3.92%. Both houses and units within the region take an average of 63 days to sell. In 2018, 67 houses and 176 units were sold with the median price for houses at $1,250,630, while for units; the figure was $667,509 (Homesales, 2019). The leading competitor in the region is Elders real estate.  A possible office location in Hornsby is  2/23-29 Hunter Street Hornsby NSW 2076

Recommendations

The two suburbs provide Flounder and Associates real estate agency with excellent locations where they can set up a base for their new offices. In terms of real estate sales, both have experienced growth in the last three years, with further success expected for the future. However, the most suitable location for Flounder and Associates real estate agency’s next offices is Hornsby NSW 2077. Unlike Thornleigh NSW 2120, Hornsby’s population is almost thrice the former. While the population is not a direct indicator of real estate sales, it certainly provides the company with a broader pool for its clients.

House and unit sales in Hornsby are also higher than that of Thornleigh. In 2018, Hornsby sold 67 houses and 167 units, while Thornleigh sales were 12 units and 63 houses. The sales records indicate that Hornsby has more market appeal relative to Thornleigh. As such, creating a base in Hornsby makes business sense for the company. While the average sale period is longer in Hornsby relative to Thornleigh, the possibility of making more sales makes appeals more to any potential real estate firms. There is also less competition in Hornsby as compared to Thornleigh, meaning Flounder and Associates real estate agency will have time to set up its strategies and study the market.

In terms of pricing, Thornleigh’s median price of houses stands at $1,253,530 and units $872,193. For Hornsby, the median price for houses stands at $1,250,630, while the median price for units is $667,509. As such, the pricing in Hornsby is more appealing to customers and gives a real estate company a better profit margin relative to Thornleigh’s pricing strategy. Finally, Hornsby has seen an upsurge in high-rise buildings coming up. As such, more units will be available in the market. Moving to Hornsby allows Flounder and Associates real estate agency to become a market leader in a new region.