As Sydney’s real estate market continued its upward trajectory, property experts have revealed surprising suburbs and smart investment strategies for prospective homebuyers.
Sydney’s property market has experienced an unprecedented 12 months of growth, leaving homeowners pleased with the increasing values, while many potential homebuyers are still contemplating the optimal time to enter the market amid challenges posed by high interest rates and the cost of living.
The Sunday Telegraph sought insights from property experts to identify the best places to buy across Sydney in 2024, with these experts highlighting not only growth areas but also hidden-gem suburbs that offer a similar lifestyle at a more affordable price compared to their popular counterparts.
Nerida Conisbee, chief economist at Ray White, said her top choice for the new year was focused on established homes in proximity to the prevalent “house and land” areas found in the Hills District and southwestern Sydney.
With a significant 27% rise in construction costs nationally, buying a home a few years old in these areas is considered a smart purchase, Conisbee told the publication.
Mathew Tiller, LJ Hooker Group’s head of research, anticipated that more listings will provide additional choices for buyers in early 2024.
Likely hotspots for the year, Tiller said, included suburbs where values have steadied or fallen, making them attractive to buyers due to affordability. There should also be solid demand, he said, for suburbs that have a median price “that is better for the budget compared to neighbouring suburbs.”
In Sydney, hotspots included Dee Why, where apartment prices dropped 8.4% over the past year.
“Glenmore Park is offering good value for families with its median house price falling 2.4% to $1 million; while Raby in Sydney’s southwest saw its median drop 1.8% to $865,000,” Tiller said.
Lloyd Edge, buyers’ agent and author, said a successful investment hinges on securing the right property at the right price.
Edge identified Coogee, Kingsford, and Kensington as hotspots for 2024.
Coogee, situated in Sydney's South-East, is expected to experience significant growth due to upcoming infrastructure projects, including the $2.2 billion South-East Light Rail.
Kingsford, located near the University of New South Wales, and Kensington, known for landmarks like the University of New South Wales and the National Institute of Dramatic Arts (NIDA), are also poised for growth with the South-East light rail project.
Leanne Pilkington, CEO of Laing and Simmons, noted a trend of investors selling out of Sydney and people offloading second homes.
“As mortgages go up, it’s the second home that continues to go,” Pilkington said. “These trends are creating potential for first-home buyers if they can get their finances in order.”
She stressed the importance of considering infrastructure and growth in a location when investing.
“Sydney has the Metro transport program going out further,” Pilkington said. “It will run from Tallawong all the way to the city with places like Five Dock having a station opening up. There’s a lot of moving parts across Sydney and investors need to look at the yield and vacancy rate.”
For those moving into a home, research on area and price changes over the past year is crucial, she said.
“However, when buying a home, you need to buy what is going to meet the needs of your family in a location that’s important for you,” Pilkington told the Sunday Telegraph.
For the original report, visit the realestate.com.au website.
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