Sydney’s 10 Best Performing Property Markets

Australian home prices fell 0.4 per cent in May, the smallest monthly decline in a year, leaving values down 7.3 per cent over the past year and signalling that the long-awaited turnaround in the two-year property slump may already be under way.

While the housing market remained in a broad-based downturn, the outlook is now slightly more positive now than it was before the federal election.

Sydney’s property market, which has dropped 14.5 per cent since its 2017 peak, with the majority of property markets across Sydney and NSW experiencing falls in prices or remained flat across the first quarter of the year.

Sydney values were 0.5 per cent lower over May, the smallest decline since March last year. For buyers who intend to buy a house as a home this is without doubt an opening.

Indeed, for first home buyers it is a golden moment, particularly if they can access the new government’s first homebuyer deposit scheme.

New market analysis from the Real Estate Institute of NSW (REINSW) reveals that now is potentially one of the best times to buy a home in Sydney with a high number of property markets across the state more accessible to investors.

REINSW analysed market trends from Corelogic, examining the first quarter median sales prices across houses and units in NSW.

The best 10 performing suburbs across NSW

SuburbProperty Type3-month change
East KempseyHouse16.4%
Clarence TownHouse16.1%
South West RocksUnit14.9%
North RothburyHouse13.0%
Smiths LakeHouse10.3%

Given there is a convincing argument that a very modest recovery may occur next year, opportunistic investors might now look at growth suburbs while conditions are soft.

NSW’s peak real estate body, has revealed the majority of property markets across Sydney and NSW have experienced falls in prices or remained flat across the first quarter of 2019 with regional NSW outperforming Sydney.

Units in Narooma, located on the south coast 280km from Sydney CBD, experienced the highest median sales price growth for the quarter, at 16.6 per cent.

This was followed by houses in the mid-north coast’s East Kempsey, with growth of 16.4 per cent.

Four suburbs in the Hunter region also had strong growth among its houses: Clarence Town experienced 16.1 per cent growth, North Rothbury had 13 per cent growth, Teralba had 11.9 per cent growth and Smiths Lake had 10.3 per cent growth to the median sales price.

The worst 10 performing suburbs across NSW

SuburbProperty type3-month change
North TurramurraHouse-12.1%
West TamworthHouse-12.2%
Bondi JunctionUnit-14.0%
Yowie BayHouse-15.7%
Sylvania WatersHouse-25.5%

Sydney properties seemed to perform worse than any other region. Houses in Sylvania Waters experienced the greatest decline in their median sales price, down 25.5 per cent.

Following this was houses in Murrumbidgee region’s Hay, which fell 19.1 per cent, Barooga houses are down 15.9 per cent, houses in Yowie Bay are down 15.7 per cent and Bondi Junction units fell 14 per cent.

REINSW chief executive Tim McKibbin said the data combined with the fact that both the NSW and federal elections had now concluded, created an ideal set of conditions for those looking to purchase property.

“With the elections now over, we have stability at a government level, together with the lowest property prices the state has seen for a very long time,” McKibbin said.

“We see that prices are bottoming out and together with the fact the market is starting to settle down after the banking Royal Commission and even talk of more interest rate cuts on the horizon, if anyone is looking for a ‘go’ signal, it would have to be now.”

Lower stock levels and a high unreported rate of possible failed auctions are also painting a rosier picture of the market.

Borrowers’ buying power will now subsequently be boosted in the wake of the Reserve Bank announcing it would lower the cash rate from 1.5 per cent to 1.25 per cent.

REINSW analysed market trends from Corelogic, examining the first quarter median sales prices across houses and units in NSW.

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Article originally posted at: https://www.theurbandeveloper.com/articles/sydneys-10-best-property-markets