Yahoo Finance Sydney’s property market may be cooling, but one suburb is bucking the trend
Property sales are slowing across Sydney but there is one suburb that is bucking the trend and seeing property sales heat up.
According to a recent Hotspotting report, almost every area in Sydney has seen its property market fall from the heady highs seen 18 months ago as the number of sales falls across the board.
That is every area except Drummoyne in the inner west, which has gone against the gain to become the only growth suburb still remaining in the nation’s largest city.
The report, which analyses the volume of sales from government data, identifies areas as either ‘rising steadily’ where sales are increasing, ‘consistent’ where the sales are stable, and ‘plateau’ in the markets which are resisting a downturn but which have also declined from their peak, according to movement in the area’s median price.
In all of Sydney’s 700 suburbs, the report claimed that Drummoyne is the only area with a positive sales pattern.
Hotspotting founder Terry Ryder said that there has been a steady wind-down in the Sydney cycle over the last 18 months - the number of growth suburbs in the past five quarters has dropped from 70, to 36, to 27, to 22, to one.
Around 70 of Sydney’s suburbs were categorised as ‘steadily rising’ just 18 months ago – the majority of these areas are now plateau markets.
The sharp decline in sales numbers is likely because the best time for investors to buy properties in Sydney has passed, with the trend now skewing towards buying in smaller cities where they can attain lower-priced properties and more attractive rental yields.
Also read: First home buyers have become collateral damage
And Ryder said Drummoyne’s 60-70% of apartment sales which are showing a distinct upward trend is likely as a result of new property developments in the area.
As a result, Sydney now ranks last among the eight capital cities due to having just one rising market.
In Melbourne there were 28 growth suburbs, 47 in Adelaide and 41 in Brisbane.
