Sydney brokerage Shore Financial has identified the Sydney suburbs with property markets that are most likely to experience price growth over the next six months.
The Shore Financial State of Sydney Report found there are suburbs performing well, despite the wider city’s property market being still in a downturn.
The quarterly report analysed the 600-plus suburbs across Sydney and picked the top five in each quintile based on changes in their median house price over the previous 12 months to November 2022. The quintiles are: Quintile 1 (heartland Sydney); Quintile 2 (suburban Sydney); Quintile 3 (rising Sydney); Quintile 4 (professional Sydney) and Quintile 5 (affluent Sydney).
To locate the top-performing suburbs, Shore Financial excluded those that did not meet certain benchmarks and trends related to asking prices, days on market, inventory levels and sales volumes over the previous three months. The remaining suburbs were ranked based on expected growth in asking prices over the next six months.
Shore Financial CEO Theo Chambers (pictured above) revealed the top five ranked suburbs in each quintile.
“For heartland Sydney, Narellan Vale house prices grew 11% over the year to May and are forecast to increase 8% over the next six months,” Chambers said. “The heartland suburb of Mount Annan is forecasting 8% growth and St Clair with 2% in the next six months.”
Chambers said Northmead (suburban Sydney) house prices climbed 11% over the previous year and were expected to rise another 4% over the next half-year.
“Meanwhile, both the suburbs of Schofields and Old Toongabbie located in suburban Sydney are also forecasted to reach another 4% in the next six months,” he said.
Chambers said Pitt Town (rising Sydney) house prices increased 40% over the year to May and were likely to grow 4% more in the next six months.
“We found the suburbs of Oatlands and Asquith, both located in rising Sydney, were closely behind Pitt Town and are forecasting 3% price growth over the next six months.”
Chambers said the suburb of Glenhaven (professional Sydney) prices rose 15% over the past year, but growth was forecast to slow to just 8% over the next half-year.
Both the suburbs of Kellyville and Strathfield located in Professional Sydney were expected to receive 8% and 6% growth respectively.
Bronte (affluent Sydney) house prices jumped 26% over the year to May and were expected to grow another 6% in the next six months.
“This is followed by Turramurra and West Pymble, both recording a 3% growth forecast,” Chambers said.
Meanwhile, Sydney has been recording higher volumes of auction clearance rates, with a rate of 69.7% achieved in early November, according to CoreLogic.
Chambers said there was no one Sydney property market – there were lots of individual markets within the city.
“If we look at the median price for Sydney as a whole, it’s been trending down during 2022 and probably has further to fall,” he said.
“However, the story is different if you drill down to the suburb level. Some suburbs have continued to grow during the year and are likely to continue growing over the next six months, which is because these suburbs have lower inventory levels and days on market than the wider Sydney property market.”
Chambers said despite the fact that properties listed for sale were down significantly, if you wanted to buy a property in a high-performing suburb, you would need to fight for it.
“If you put in lowball offers, you’ll be outbid – if you dawdle, someone else will beat you to the punch,” he said.
“Despite the fact overseas migrants and students are starting to return to Sydney, they would have little impact on property prices in the immediate future as young students rarely have enough money to buy, so they’re almost always renters. As a result, while this current wave of students and migrants will eventually impact buyer demand, it won’t be for a few years.”
