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Analysis by a Sydney buyer’s agent has revealed five leading-indicator suburbs set to be at the forefront of price gains during the city’s next growth cycle.
Nick Viner, principal and buyer’s agent at Buyers Domain, said that, by studying the data and applying on-the-ground knowledge, he has identified those locations he considers as beacons of overall price rises.
“The facts are that certain fundamentals ensure some suburbs react before others when prices begin rising again,” he said.
Mr Viner said the surprise Coalition election win coupled with the recent APRA announcement on more relaxed lending guidelines had brought confidence back to the market, and quickly too.
Mr Viner restricted the sample to suburbs within a 10-kilometre radius of the CBD which had seen the greatest price drops in the past year.
Glebe
Located in the heart of the city on the banks of Rozelle Bay, Glebe has an enviable access to lifestyle and facilities.
“Glebe ticks so many boxes, yet a property price retraction of around 17 per cent over the past year, to reflect a median of around $1.6 million, shows it’s well below its peak.
“Glebe is a stone’s throw from Broadway, Haymarket and the rest of the CBD and is close to the University of Sydney, UTS and RPA hospital.
“The suburb has remained popular, with a cross-section of purchasers from first home buyers to families looking to upgrade to downsizers.
“I have no doubt when real estate prices turn around, Glebe will be among the first to benefit.”
Redfern
Redfern had already evolved well beyond its chequered past to become a major urban hotspot, Mr Viner said.
“It’s now seen as one of the city’s most exciting addresses, with property price rises during the boom evident of its gentrification.”
However, a drop in property values of around 16.8 per cent to a median price of $1.39 million over the past year means the ‘boom premium’ is now priced out, Mr Viner said.
“The upside is this: new infrastructure is enhancing Redfern’s appeal. As confidence returns to the market, it will definitely be one to watch as among the first for value increases.”
Lane Cove
The Lower North Shore suburb of Lane Cove, positioned just seven kilometres from the CBD, is one of those “must-have” Sydney addresses, Mr Viner said.
The suburb is an administrative hub for local council as well as being a major commercial centre for the district.
“Lane Cove saw property price falls of around 16.6 per cent over the past year, with a median that now sits at approximately $1.8 million.”
North Bondi
Mr Viner said the eastern suburbs of Sydney are the very definition of blue-chip real estate.
“Iconic addresses are dotted throughout this region, which proved highly resilient throughout the last year. While some eastern suburbs saw price falls, they were among the least dramatic within 10 kilometres of the CBD.”
Mr Viner said the biggest fall was seen in North Bondi’s median property price, which reflected a drop of around 16.4 per cent over the year.
“North Bondi’s median property price of $2.533 million is still fairly steep for the average buyer, but signs show it’ll be among the first suburbs in Sydney to move.”
Leichhardt
Leichardt is positioned around five kilometres from the CBD and is among the more price-accessible addresses within this near-city band, Mr Viner said.
“Leichhardt’s property prices fell by around 15.8 per cent in the last year, and its median property price of $1.28 million actually put it among the more affordable suburbs this close to town.”
Mr Viner said it was this price point that made the suburb an attractive option for those re-entering the markets after recent falls.
“Stock levels have tightened up considerably since last year, particularly in the ultra-competitive sub $1.5 million price bracket, which is a popular budget amongst first home buyers, small families and downsizers.”
