The NSW eastern beachside suburb of Bronte has been named as one of the state's best performing housing markets.
According to real estate mogul John McGrath’s latest market review, older home buyers are increasingly looking for a lifestyle change that allows them to work from home part-time while still enjoying a quick commute to the office.
Apart from Bronte, Mr McGrath highlighted Pyrmont, Neutral Bay, Hunters Hill, Mosman, Balmain East, Avalon and Northbridge as other strong performing suburbs in the housing market.
In terms of apartments, Mr McGrath said Darling Point, McMahons Point, Lane Cove West, Tamarama, Ramsgate, Balmain and Chippendale represented the best value for money.
While most analysts are saying buyer demand will drop off, Mr McGrath said demand will remain relatively strong.
“Many buyers in today’s market have been actively looking for many months and don’t want to miss out. Buyers remain confident that price growth will continue to rise over the next 12 months. However, buyers shouldn’t get carried away and over-commit,” Mr McGrath said.
“We saw strong price growth in the first quarter of 2010 in most major cities and I predict this will continue through the Winter season. There’s been some speculation that the property market will be impacted by rising interest rates, and while it’s likely that price growth may slow by Christmas, we won’t see any correction in values.
“Supply will remain low for several years so I believe we’ll see ongoing annual price growth of around 6 per cent to 8 per cent once this surge in prices subsides. We’re at the beginning of a 3 to 5 year growth cycle and I believe buyers will look back and wish they had bought in 2010.”