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Five Sydney suburbs expected to outperform the market

by xyonent
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Aerial View Suburban Sydney Housing Spi.jpg

Shore Financial released its latest quarterly report. Shore Finance Sydney Report It identifies suburbs in different price ranges that are expected to outperform the market over the next six months.

Suburbs included in the report were selected by first eliminating suburbs that did not meet benchmarks or trends for asking price, days on market, inventory levels and sales volume over the past three months.

Suburbs that meet this criteria are then ranked based on the expected rate of increase in asking prices over the next six months.

Of Sydney’s 600-plus suburbs, these exceptional suburbs have been split into five quintiles based on the current average asking price of homes.

  • Quintile 1 = Heartland Sydney
  • 2nd quintile = Sydney suburbs
  • Quintile 3 = Sydney on the Rise
  • Quintile 4 = Professional Sydney
  • quintile = wealthy Sydney

Theo Chambers, CEO of Shore Financial, said: Shore Finance Sydney Report This shows the diversity of Sydney’s current property market.

“Some suburbs will see prices increase significantly over the next six months, others will stagnate or even fall, meaning Sydney has lots of submarkets that each have their own cycle,” Mr Chambers said.

The results of Shore Financial’s latest survey were quite different to what brokers had expected. Shore Finance Sydney Report A report released three months ago said affordable Sydney suburbs would experience the highest price growth in 2024.

Mr Chambers explained that the current interest rate outlook could have a significant impact on Sydney property prices overall in the short to medium term.

“Depending on the circumstances, interest rates could rise in August. Even a single rate increase could erode confidence in the market, impacting buyer behaviour and prices,” Chambers said.

Chambers noted that property availability is also a variable to watch, as Sydney’s current housing stock is very low, so an increase in housing supply will put downward pressure on demand and influence local price growth over the next six months.

Chambers also noted that immigration rates are currently strong, and that if immigration levels were to fall significantly, buyer demand could weaken.

The CEO further said that forecasting is “particularly challenging at present” given the uncertainty of the interest rate outlook and changing domestic and international conditions.

However, Mr Chambers elaborated that “global disruption” may be affecting buyer activity, particularly in Sydney’s premium suburbs, as property in the city has become seen as a “safe haven” investment.

“History shows that Sydney’s property market goes through ups and downs over a 10-year period but ultimately the median price at the end of the decade is significantly higher than at the start of the decade. There is no reason to expect anything different over the next decade,” Mr Chambers said.

Here are the suburbs expected to outperform the market over the next six months.

Quintile 1: Heartland Sydney

Suburb: Kingswood

Postal code: 2747

Current median home price: $860,000

Predicted home price growth over the next 6 months: 4%

2nd Quintile: Sydney suburbs

Suburb: Parramatta

Postal code: 2150

Current median home price: $1.5 million

Home price growth forecast for next 6 months: 5% or more

Quintile 3: Sydney on the Rise

Suburb: Baden Ridge

Postal code: 2234

Current median home price: $1,663,000

Home price growth forecast for the next 6 months: 5% or more

Quintile 4: Professional Sydney

Suburb: Dundas

Postal code: 2117

Current median home price: $1,742,000

Home price growth forecast for next 6 months: 5% or more

5th quintile: wealthy Sydney

Suburb: Lane Cove

Postal code: 2066

Current median home price: $3,036,000

Home price growth forecast for next 6 months: 5% or more

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