The Shore Financial State of Sydney Report has identified a select number of suburbs whose property markets are likely to experience price growth over the next six months. That’s despite the fact that the wider Sydney property market is still in a downturn.
The quarterly Shore Financial State of Sydney Report divides Sydney’s 600-plus suburbs
into five quintiles, based on their current median asking price for houses:
● Quintile 1 = Heartland Sydney
● Quintile 2 = Suburban Sydney
● Quintile 3 = Rising Sydney
● Quintile 4 = Professional Sydney
● Quintile 5 = Affluent Sydney
Narellan Vale (Heartland Sydney) house prices, which grew 11% over the year to May, are forecast to increase 8% over the next six months.
In Northmead (Suburban Sydney), house prices climbed 11% over the previous year, and are expected to rise another 4% over the next half-year.
Pitt Town (Rising Sydney) house prices increased 40% over the year to May, and are likely to grow 4% more in the next six months.
In Glenhaven (Professional Sydney), house prices rose 15% over the past year, but growth is forecast to slow to just 8% over the next half-year.
Bronte (Affluent Sydney) house prices jumped 26% over the year to May, and are expected to grow another 6% in the next six months.
Shore Financial CEO Theo Chambers said the latest quarterly Shore Financial State of Sydney Report shows there’s no one Sydney property market – there are actually lots of individual markets within the city.
“If we look at the median price for Sydney as a whole, it’s been trending down during 2022, and probably has further to fall. However, the story is different if you drill down to the suburb level,” he said.
“Some suburbs have continued to grow during the year and are likely to continue growing over the next six months. That’s because these suburbs have lower inventory levels and days on market than the wider Sydney property market. So if you want to buy a property in those suburbs, you need to fight hard. If you put in lowball offers, you’ll be outbid; if you dawdle, someone else will beat you to the punch.”
Mr Chambers said that despite the fact overseas migrants and students were starting to return to Sydney, they would have little impact on property prices in the immediate future. “Young students rarely have enough money to buy, so they’re almost always renters. Older workers tend to have more money, but they generally rent in their first few years as well, because it takes time to acclimatise to a new country and banks are reluctant to lend to new arrivals,” he said.
“As a result, while this current wave of students and migrants will eventually impact buyer demand, it won’t be for a few years.
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