Sydney’s soaring property market is showing no signs of slowing – but some regions in particular are earmarked for continued strong growth, a property expert has said.
The Western Sydney area of Blacktown, the Sutherland Shire region in Sydney’s south, and the Northern Beaches area have enjoyed and will continue to enjoy “exceptionally strong [house] price performance” amid COVID-19, according to hotspotting.com.au analysis.
“The price uplift across Sydney in the past 12 months has been extraordinary,” hotspotting.com.au managing director Terry Ryder wrote in his latest report.
“Of the 223 suburbs in our price analysis, 217 (97 per cent) have recorded growth in their median house prices, including 88 with increases above 10 per cent and some above 20 per cent.”
Suburbs in Western Sydney have long been recognised for their growing popularity among buyers who are seeking affordability and proximity to schools, job hubs and transport links.
With median house prices at $735,000, Blacktown in particular is popular among both home-buyers and investors, according to Ryder, and has proven to be relatively COVID-proof.
“The Blacktown local government area was the strongest of the outer-ring markets in Sydney. This precinct continued to perform well during the virus crisis, with several suburbs achieving double-digit growth in their median house prices over the past 12 months,” he said.
The area features Westpoint Blacktown, one of Sydney’s biggest shopping centres, and is close to a number of employment hubs including Norwest Business Park and Parramatta.
Improvements to transport infrastructure have boosted access to Sydney’s CBD, and major roads make a link to the Blue Mountains.
House prices in the Blacktown suburbs of Schofields, Marsden Park and Marayong have risen by 18 per cent, 13 per cent and 12 per cent as of May 2021 compared to a year ago, CoreLogic figures reveal.
The Sutherland Shire area in Sydney’s south has also shone as a property market that bucked the pandemic, Ryder said.
The area is popular with families due to its proximity to private schools, massive shopping centre in Westfield Miranda, and its beachside location – Cronulla is a popular tourist destination.
Located about 45 minutes from Sydney’s CBD, ‘the Shire’ has become more popular since COVID due to the remote work trend as people choose to move away from city living.
“The suburbs of The Shire offer good value, an excellent capital growth record and solid potential for future uplift,” said Ryder.
“Double-digit growth has been common in both houses and units in 2020 and the early part of 2021. Most suburbs have median house prices ranging from $900,000 to $1.4 million, while unit medians tend to be around $600,000 to $800,000.”
House prices in Jannali and Sylvania have been noted for their 15 per cent growth, followed by Caringbah (13 per cent) and Heathcote and Kirrawee (11 per cent).
Meanwhile, Sydney’s Northern Beaches was leading the Harbour City’s property market upswing in early 2020, and has remained one of the most resistant to the pandemic, according to Ryder.
“The Northern Beaches is an affluent area of Sydney. Residents are generally well-educated, working in jobs such as computer system design and related services, health care, banking and education,” Ryder said.
“Many suburbs have enjoyed an enhanced appeal because of revised attitudes to working remotely as a result of COVID-19, so buyer demand remains strong.”
The area has recently been boosted by major projects that are either completed or underway such as the $600 million Northern Beaches Hospital, $500 million spent on roads near the hospital, and the Beaches Link tunnel, which is expected to improve commutes to and from the CBD.
Several TAFE colleges are also based in the Northern Beaches, which is also popular with migrants from England and New Zealand.
Residents and tourists are also attracted to the beachside lifestyle as well as its thriving arts scene which features a theatre, galleries, markets and arts festival.
Property prices here range between $1.5 million to $3 million. Avalon Beach and Manly have been stand-out growth suburbs within the Northern Beaches: homes in Avalon Beach have risen by 22 per cent in the last 12 months to $2.3 million, while Manly unit prices have risen by 15 per cent to $1.5 million.
Meanwhile, the property market in Frenchs Forest and Freshwater rank among the best suburbs in the nation for the consistency of sales activity.