Sydney brokerage Shore Financial has revealed which Sydney suburbs are likely to outperform the market over the next six months.
The quarterly Shore Financial State of Sydney Report analyses the 600-plus suburbs across the city and picks the top five in each quintile based on changes in their median price for prices.
The quintiles are Quintile 1 = Heartland Sydney, Quintile 2 = Suburban Sydney, Quintile 3 = Rising Sydney, Quintile 4 = Professional Sydney, and Quintile 5 = Elite Sydney.
To ensure the analysis was rigorous, suburbs that don’t meet certain benchmarks and trends related to asking prices, days on market, inventory levels, and sales volumes over the previous three months were scrapped off the list. The remaining suburbs were then ranked based on expected growth in asking price over the next six months.
Below are the top five rankings for all five quartiles.
Theo Chambers (pictured above), Shore Financial CEO, said the findings confirmed that the wider Sydney property market has turned the corner.
“Twelve months ago, prices were falling in most suburbs across Sydney,” Chambers said. “Six months ago, the turnaround had just begun, but it was too early to know for sure. Now, though, we can say with certainty that Sydney is in growth mode.
“During the past six months, we’ve seen days on market and inventory levels fall in many parts of
Sydney. In other words, market conditions have swung from buyers to sellers, which has been reflected in rising asking prices.”
That said, the Shore Financial chief cautioned against getting carried away, as there was a difference between a rising market, which we are currently in, and a booming market.
“It’s also important to realise that while prices are rising across Sydney as a whole, they’re not rising in every single suburb,” Chambers said. “Also, the outlook differs from suburb to suburb. Our research shows that wealthier suburbs, like Naremburn on the North Shore and Fairlight on the Northern Beaches, are likely to record stronger growth over the next half-year than less affluent suburbs like Busby and Green Valley in the city’s west.
“Focusing just on the 25 suburbs in the Shore Financial State of Sydney Report, they’re all showing strong signs they’ll outperform suburbs in a similar price bracket over the next half-year. One of the key leading indicators is the low levels of inventory in these suburbs. Demand pressures are building, which is likely to lead to above-average price growth.”
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