The latest quarterly Shore Financial State of Sydney Report has revealed the top suburbs in Sydney that are expected to experience significant price growth in the next six months.
The report identifies the standout suburbs across a range of price points, and categorises Sydney’s 600-plus suburbs into five quintiles based on their current median asking price for houses:
The report picks the top five suburbs in each quintile by excluding those that don’t meet benchmarks related to asking prices, days on market, inventory levels, and sales volumes over the previous three months. The remaining suburbs are ranked based on expected growth in asking prices over the next six months.
According to the latest Shore Financial State of Sydney Report, some standout growth suburbs include Kingswood (Heartland Sydney), Parramatta (Suburban Sydney), Barden Ridge (Rising Sydney), Dundas (Professional Sydney), and Lane Cove (Affluent Sydney).
Shore Financial CEO Theo Chambers (pictured above) commented on the diverse nature of the current Sydney property market.
“Some suburbs are likely to experience strong price growth in the next six months, some are likely to stagnate and some are likely to go backwards, showing that Sydney is full of sub-markets that all have their own cycles,” Chambers said.
Chambers noted the interest rate outlook’s potential impact on Sydney property prices.
“The last Shore Financial State of Sydney Report, three months ago, suggested that the more affordable Sydney suburbs were likely to experience the strongest price growth in 2024, and that’s still the case,” he said. “But what’s changed since then is the interest rate outlook, which could have a major short-term and even medium-term impact on Sydney property prices.”
The Reserve Bank is now signalling a possible cash rate increase due to persistently high inflation. Depending on future developments, an August rate hike could be on the horizon.
“Even one rate rise would drain some confidence from the market, which would affect buyer activity and price results,” Chambers said.
Chambers also highlighted the role of property listings and immigration on the market.
“While listings in some suburbs have seen increases in 2024, overall, 80% of Sydney still remains at very low levels of inventory, with conditions clearly favouring sellers,” he said.
“Strong immigration is also contributing to stronger conditions across every price point. There’s no sign of immigration levels declining meaningfully in the foreseeable future, but, if that did happen, it would dampen buyer demand.”
Chambers advised both owner-occupiers and investors to approach property with a long-term mindset.
“Forecasting is always tough as no-one can see around corners – but it’s particularly challenging at the moment, given that we don’t have a clear view on interest rates and, globally, conditions are challenging,” he said.
“History suggests that, in any given 10-year period, the Sydney market will experience ups and downs but ultimately have a significantly higher median price at the end of that decade than the start. There’s no reason to expect anything different from the next 10 years.”
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