Sydney's Affluent Suburbs Set To Be The Property Growth Performers In 2016

According to the latest property analysis from SQM Research, Sydney’s affluent suburbs or those with a median price over $2 million are set to enjoy a period of solid growth in the next 12 months. This prediction follows a strong growth period for Sydney’s cheaper areas, particularly Western Sydney during the past three years.

As a key note speaker at the 2015 Property Buyer Expo held next week, Managing Director of SQM Research Louis Christopher will reveal Sydney’s top performing and underperforming regions during the past year.

In addition, he will highlight the top regions expected to perform in 2016, expected vacancy rates and the forces influencing the slowing Sydney property market.

Louis Christopher, Managing Director for SQM Research said, “Sydney’s West has been the star performer over the past three years with units in the South West region increasing by 52 percent and reaching a median price of $439,000.

"Parramatta was the standout house performer recording 53 per cent growth and a median price of $931,000. Investors and owner occupiers, particularly first home buyers have been driven west due to the high property prices in the inner city areas.

“Investors have been looking at the numbers and realised that they can obtain two properties for the price of one if they purchase in cheaper areas and gain stronger rental yields. Two million plus units and homes generally return less than 2 per cent for rental yields, whereas properties under $1 million can generate between 5 – 10 per cent depending on the area. The holding costs for cheaper properties are also much less.”

He added, “It is not surprising that affluent areas have underperformed compared to the cheaper suburbs. Units in the Lower North Shore grew by 3 per cent with a median price of $729,500. This area also recorded 0.1 per cent growth for houses with a median price of $2.250 million.

“The tables are expected to reverse in 2016 with affluent suburbs set to be the growth performers. One of my top tips for the coming year includes the Eastern suburbs with growth predictions between 8 to 13 per cent.

“Many are forecasting a property crash in 2016 in Sydney. This is certainly not my prediction. Sydney’s economic credentials are looking strong for the year ahead with a low interest rate environment set to continue, low supply levels, rising employment figures and major infrastructure plans already underway. It is also the best performing state in Australia according to the latest Australian Bureau of Statistics figures until June 2015 reaching 5.9 per cent growth,” Mr Christopher continued.

Kylie Mayer, Event Organiser for the 2015 Property Buyer Expo said, “This year’s event is about delivering a picture of what the future of property will look like from ‘the best of the best’ working in the property industry. Exhibitors have been chosen to represent all aspects of the property life cycle and will showcase the very latest services and products available to home owners and property investors alike.

“The event features exclusive residential property offers in high profile projects both locally and overseas, a VIP lounge to meet the experts, educational and controversial speaker topics, 30 and 60 minute property masterclasses, expert discussion panels with hot topics and live auctions showcasing the very latest apartments and home projects.”

The Property Buyer Expo will take place over three days from 30 October until 1 November at the Sydney Showgrounds in Homebush.

Several property experts will lead the presentations and panel discussions, some of which include Effie Zahos, Editor: Money magazine; Chris Gray, Managing Director: Your Empire; Margaret Lomas, Sky News Host and Founder: Destiny Financial Solutions; Nicola McDougall, Editor: Australian Property Investor magazine; Tyron Hyde, Managing Director: Washington Brown; Michael McKinney, Managing Director: Sellers Concierge; Philippe Brach, CEO: Multifocus Properties & Finance; Ben Kingsley, CEO: Empower Wealth and Siobhan Hayden, CEO: Mortgage and Finance Association of Australia.