Even before the Reserve Bank began delivering its flurry of interest rate hikes, Sydney’s property sector has been rolling with the market punches.
The Harbour City hit a trough in the March quarter of 2022 and has moderately recovered, fighting back through the most aggressive monetary tightening cycle in 30 years.
And according to online property research platform Hotspotting, the latest data indicates there are now an increasing number of Sydney suburbs classified as rising markets.
“In the first quarter of 2022, Sydney had 126 suburbs classified as rising or consistency markets, half the levels at the mid-2021 peak,” Hotspotting founder Terry Ryder said.
“In the second quarter of 2022 this rose to 148, and in the latest quarter to 152.”
Crunching the numbers, the proportion of rising markets rose from 26 to 30 per cent over the period.
Mr Ryder said the Greater Sydney market was currently highly segmented with rising markets generally those offering a degree of affordability in an expensive city—including outer-ring areas as well as middle-market locations where apartments offer value for money relative to houses.
Interestingly, some areas classified as declining locations that did not offer reasonable affordability also included rising markets.
“Affordability is relative and it’s notable that some of strongest parts of the Sydney market are middle market areas with house prices in the range of $1 million to $1.5 million, and apartments well under $1 million,” Rydney said.
Here is the list compiled by Hotspotting of Sydney’s top five areas it tips that developers should be targeting in the first six months of 2023.
South Western Suburbs of Sydney
The standout and strongest market overall—helped by its relative affordability and good amenities—with 17 of the 23 suburbs in the analysis classified as either rising or consistency markets.
• Largest general aviation airport in southern hemisphere with adjacent industrial precincts
• $185 million government funding for community sites and solar farm
• $1.3 billion mixed-use hub
• $112 million new private hospital and $1.3 billion updated public hospital.
South Western Suburbs of Sydney
Well on its way to becoming recognised as Sydney’s third CBD, Liverpool is the number one location in New South Wales for first-home buyers because of its more affordable houses and units.
Extensive new commercial and mixed-use developments have added to existing infrastructure in the suburb and numerous residential developments are under way or in the pipeline.
• Western Sydney Priority Area
• $3.6 billion in roads investment
• Proximity to new Western Sydney Airport & related infrastructure
• Leading area for first-home buyers and solid growth in rentals
• $5-billion Northern Gateway Precinct.
Greater Western Sydney
The City of Parramatta is the geographical centre of the Greater Sydney CBD and its second-largest economic centre with a GRP (gross regional product) of $33 billion.
With the Sydney Metro and Parramatta light rail projects promising quicker access to the Sydney CBD, and the $3.2-billion Parramatta Square redevelopment, the city is attracting new business and investment.
• Western Parklands City masterplan
• High population growth and low vacancy rates
• $3-billion Parramatta Light Rail and new Metro stations
• $3.2-billion Parramatta Square redevelopment
• New mixed-use developments at Melrose Park and Wentworth Point.
Inner Western Sydney
The Inner West market was a prominent part of the Sydney property market’s revival since the onset of Covid.
A key feature of the Inner West market is growing demand for apartments. Many of the area’s suburbs have median apartment prices below the Sydney median. The precinct is well located to benefit from the massive WestConnex and Sydney Metro West transport projects.
• Billions spent on road and rail transport projects
• $3.9-billion Rozelle interchange
• $750-million Royal Prince Alfred Hospital redevelopment (pictured)
• Proximity to jobs nodes: CBD and medical-educational precinct
• Bays West—a new innovation hub and proposed train station.
South Western Suburbs of Sydney
Badgerys Creek, the site of the planned Western Sydney Airport, is destined to become an economic powerhouse.
The region surrounding the airport has been dubbed ‘Aerotropolis’ because of the massive projects planned. At the centre of this development will be the $5 billion Northern Gateway, a planned city featuring an international university and education precinct, a wellness and healthcare centre, Westfield retail entertainment precinct and a hi-tech logistics hub.
Billions are also being spent on road and rail infrastructure to cater for a population that is predicted to swell to around 440,000 by 2041.
• Western Sydney Priority Area
• $5.6-billion Western Sydney Airport and $1.9 billion freight terminal
• $5-billion Northern Gateway development
• $5-billion Penrith Health and education precinct
• $3.6-billion in roads investment
