Properties in the most affordable suburbs of Sydney are likely to be the best performers in the next six months, according to a new report.
The Shore Financial State of Sydney report found prices would rise across a range of price points in the next six months, with many suburbs set to grow by more than 5 per cent.
Some of the standout growth suburbs include Kingswood (4 per cent), Parramatta (over 5 per cent), Barden Ridge (over 5 per cent), Dundas (over 5 per cent) and Lane Cove (over 5 per cent).
At the affordable end of the spectrum, Werrington County, Bligh Park, Blacktown and Whalan were expected to see prices rise by between 3 and 4 per cent.
While Greystanes, Bonnyrigg, Lurnea and Regents Park could all grow by more than 5 per cent.
The slightly more expensive Belfield, Rockdale, Normanhurst and Hurstville were also set to see growth above 5 per cent.
Shore Financial Chief Executive Officer Theo Chambers said the research revealed the diverse nature of the current Sydney property market.
“Some suburbs are likely to experience strong price growth in the next six months, some are likely to stagnate and some are likely to go backwards, showing that Sydney is full of sub-markets that all have their own cycles,” Mr Chambers said.
“The last Shore Financial State of Sydney report, three months ago, suggested that the more affordable Sydney suburbs were likely to experience the strongest price growth in 2024, and that’s still the case.
“But what’s changed since then is the interest rate outlook, which could have a major short-term and even medium-term impact on Sydney property prices.”
He said earlier in the year, it seemed certain the next move in the cash rate would be down, but now the odds of a rate rise had increased, which could hurt demand.
Mr Chambers said even one rate rise would drain some confidence from the market, which would affect buyer activity and price results.
“Property listings are another variable to watch,” he said.
“While listings in some suburbs have seen increases in 2024, overall 80 per cent of Sydney still remains at very low levels of inventory, with conditions clearly favouring sellers.
“There’s no sign of this changing anytime soon – but if listings activity does prove more robust than expected in certain suburbs, that extra supply would put downward pressure on demand and impact local price growth over the next six months.”
Mr Chambers said the record increase in population, driven by overseas immigration, was behind the current sky-high level of demand.
“Strong immigration is also contributing to stronger conditions across every price point,” he said.
“Again, there’s no sign of immigration levels declining meaningfully in the foreseeable future, but, if that did happen, it would dampen buyer demand.”
He said demand had increased for premium suburbs on the back of worldwide economic and political uncertainty.
But both owner-occupiers and investors should approach property with a long-term mindset.
“History suggests that, in any given 10-year period, the Sydney market will experience ups and downs but ultimately have a significantly higher median price at the end of that decade than the start,” he said.
“There’s no reason to expect anything different from the next 10 years.”
