Sydney Hotspots 2013
The purpose of this report is to assess the suburbs of Sydney that have the potential to perform over the coming year. Suburbs have been chosen based on current pricing levels, infrastructure, property trends, access to amenities and other factors.
What happened in 2012?
Sydney proved to be one of the most resilient residential property markets in Australia. The Greater Sydney area recorded annual growth in house and unit median price despite a fall in activity. The median house price increased by 6.1 per cent in the year to October 2012, while that of a unit appreciated by 2.8 per cent.
In 2012 PRD Research noticed a shift toward strata-titled dwellings, and in particular an increase in demand for properties toward the bottom end of the market. Reviewing our picks for 2012 revealed a mostly positive image.
Topping the PRD performer list for 2012 were Redfern (House) and Balgowlah (units), increasing by 13.2 per cent and 13.3 per cent respectively. The median unit price in Ryde firmed with the registration of off-the-plan sales. The suburb recorded a 12 month growth of 9.5 per cent to a median of $536,500.
Hotspot picks for 2013
The team expects small increases in price in 2013 as buyers cash positions improve. Low interest rates coupled with stable or rising rents will bring more upgraders and investors into the market. Units will continue to dominate the sales chart, with new developments in middle and outer rings offering affordable product to first home buyers and steady returns to investors. Other factors that assist us in determining the most likely suburbs to experience strong capital growth in 2013 are:
Population growth increases demand for properties and generally puts upward pressure on property prices.
Infrastructure and investment - supports current and future increases in population and the development of amenities.
Employment opportunities - these include proximity to employment nodes or potential jobs growth.
For more information please click on the below PDF.