Where to buy in the hot Sydney market

Where to buy in the hot Sydney market

Posted on Wednesday, December 18 2013 at 11:25 AM

Sydney’s property market had a stellar year and shows no immediate signs of slowing down, but new analysis shows some suburbs are flying under the radar.
According to research by Onthehouse’s property research arm Resdiex, some suburbs haven’t yet taken off and could offer potential investment opportunities.
The growth in the top performing Sydney suburbs over the past 12 months was significant, with property owners in Northbridge increasing their net worth by more than $300,000 on average.

John Edwards, consulting analyst for Onthehouse and founder
of Residex, says strong performing suburbs are often ones that have already
experienced the majority of their growth for the current cycle.

“On the other hand, the poor performers are probably yet to
see significant growth during this cycle and may offer investors very good
growth prospects and homebuyers an opportunity to purchase well from despondent
vendors,” Edwards says.

“For example, the data suggests that North Parramatta has probably seen the
majority of its growth, whereas suburbs like Green Valley and Camden South are
yet to see their period of strong growth.

“Recent auction activity and the numbers point to a market where the upper
end is beginning to slow and the lower cost areas are currently the most sought
after. Based on the data, it would appear that lower cost suburbs will see the
strongest growth in the next 12 months.”

His analysis has identified the worst performing capital
growth suburbs in Sydney for both houses and units.

Slow growth movers –
houses 

Slow growth movers –
units

When it comes to the top performers for 2013, house and
landowners have done better in all respects compared to unit owners.

Capital growth top
performers – houses

Capital growth top
performers – units

Knowing where a suburb is in its growth cycle is key to identifying the
opportunity within that area, Edwards says.

“If you combine the knowledge about a suburb’s growth cycle along with
research data, suburb information and if you find out what the public considers
the best streets are, then good buying decisions should result.”

 

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