Top suburb picks
The property markets are running hot in 2021, but there are still some opportunities for growth in certain areas.
Pete Wargent, co-founder of Australia’s first national property buyer’s agency network BuyersBuyers said that demand has shifted towards houses through the pandemic, but as lending restrictions come into focus next year there will be a ripple effect into some of the locations where price growth has lagged.
Mr Wargent said, “affordability will begin to bite for houses in Sydney’s top-performing suburbs next year, but there are still suburbs and pockets where prices have not blown off.”
“These areas offer an opportunity to catch this property wave for buyers in Sydney” Mr Wargent said.
Doron Peleg, founder of RiskWise Property Research said, “just as all of our top 10 danger zone suburbs have been focussed on units, the top picks for buyers are all focussed on houses in suburbs where prices remain relatively reasonable”.
“In Sydney, the top picks range from around 15 to 40 kilometres from the centre of the city, and we expect family-appropriate housing in these suburban locations to perform well from here” Mr Peleg said.
Figure 1 – Top 10 Sydney property picks
Mr Peleg said that regional house price growth has been exceptionally strong over the past year, and the best picks all have median prices of under $1 million.
“We expect there to be some curbs on lending in 2022, so buyers should be mindful of this. Our top regional picks for New South Wales cover a range of locations up and down the coast, where houses can be secured for well under $1 million” Mr Peleg said.
Figure 2 – Top 10 regional NSW property picks
Pete Wargent of BuyersBuyers said stock levels have been unusually low through this cycle to date but should pick up as Covid-19 restrictions are eased.
Mr Wargent said, “we believe there will be more choice for buyers over the coming 3 to 6 months, but as the market for detached homes is still competitive buyers need to be clear about their strategy and be able to act decisively”.