Sydney Hotspots - 2nd Half 2017

“While still performing above other capital cities, Sydney is increasingly pivoting towards a more sustainable level of growth which is good news for affordability. More affordable options can be found in the south and west. Mixed-use projects are hugely popular”. 

Tony Brasier (PRD Chairman & Managing Director)

The PRD Sydney hotspots report analyses all suburbs within the Greater City of Sydney region, providing valuable insights and highlights of the property market for the rest of 2017 and into 2018. This report takes into consideration the following factors:

  • Sales indicators - the number of sales transactions (suburbs with less than 20 sales are excluded from this report) and median price growth between 2016 and 2017.
  • Rental indicators - median rental price, rental yield, and vacancy rates.
  • Affordability - the average New South Wales home loan, which indicates the amount banks are comfortable with lending to home buyers. To determine the maximum property price, 90% is added to the average New South Wales home loan, which was $467,203  as at June 2017, which is an increase of 5.3% over the previous quarter.
  • Projects value  - developments scheduled to commence in the 2nd half 2017, which includes mixed-use, infrastructure, industrial, and residential projects. This is key to maintaining growth as it indicates a potential increase in economic and commercial activity; as well as inter connectivity to key transport routes, the CBD, and other major urban business hubs.

The median house price in the Sydney metro has experienced a slower growth of 0.8% over the past 12 months, suggesting a return to a more sustainable level of price growth. Furthermore, the unit market has softened by -2.5% within the same time frame. This indicates that both house and unit prices in the metro market are beginning to pivot – providing some affordability to Sydney residents.

Sydney’s rental market provides attractive conditions for investment with three bedroom house rents recording a positive growth of 3.2% to $485 per week over the past 12 months. Meanwhile, two bedroom unit rents have seen a solid 5.8% increase in rental growth, now at $550 per week. Although Sydney’s vacancy rates have seen an increasing trend, at 2.1% in September 2017, rental returns suggest investors will still benefit in the Sydney market.

Overall the Sydney Metro house market has seen a slight softening in 2017, pivoting to a more sustainable level of growth. Amidst affordability concerns, the middle to outer ring provides relief, with specific affordable hubs emerging in the south-west region.

For further information on each PRD Capital City 2nd half 2017 Hotspot Series, please contact

Sydney Hotspots 2nd Half 2017