Some surprising results have turned up in the latest Sydney hotspot report from the research arm of a national real estate agency.
The PRDnationwide Sydney Hotspots Report 2012, which took various factors into consideration – including population growth, infrastructure and investment and employment opportunities – picked the following suburbs as ones to watch for long-term growth:
- Marrickville (houses)
- Abbotsford (units)
- Kogarah (units
- Roseville (units)
- Naremburn (houses)
- Ryde (houses and units)
- Balgowlah (units)
- Redfern (houses)
“The year 2012 will be one where demand will increase for well-located properties in the inner and middle ring of Sydney,” said report author and PRDnationwide NSW research analyst Oded Etzioni, adding that pricing levels and proximity to amenities are key.
“Units rather than houses will again be the dwelling of choice in these locations, as more new developments are completed over the next 12 months.”
He noted that planned job cuts in the financial sector pose a risk to the performance of the Sydney market, but added that the city’s supply and demand fundamentals are strong – especially when compared to east coast rival Melbourne.
“Comparing with Melbourne, the Sydney market does not suffer from oversupply of stock,” said Etzioni. “The demand for houses and units remains, with local buyers and foreign investors showing interest in Sydney’s property.”
He added, however, that Sydney’s prices remain “firm and unaffordable to many”, despite small declines in median values last year, leaving a resurgence in the city’s property market reliant on interest rate cuts and the return of buyer confidence.
With interest rate increases having been announced by the Big Four banks, however, it remains to be seen whether buying activity will pick up in earnest this year.
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