“If you are looking to buy property in Sydney, don’t worry about media fears of a housing crash”, says Kanebridge MD Marwan Rahme. “While the median house price in Australia is $600,000, Sydney’s median house price is over $1m and it’s poised to grow even further.”
Over the past 4 years, Sydney has enjoyed 67% growth in property values across the board and property analysts are predicting this strong growth will continue. Fueling Sydney property prices are:
- Stable interest rates
- Low unemployment
- A rapidly growing population and
- Massive infrastructure investment by the State and Federal government
In fact NSW enjoys the strongest economic outlook of any Australian state and this is expected to continue for the next 2-3 years.
Property growth expectations
A study conducted by the Australian Financial Review compared Sydney property growth predictions from 3 major research houses and found:
- SQM Research is predicting 13-18% growth
- CoreLogic is predicting 2-4% growth
- BIS Shrapnel predicts approx. 10% growth
Even with an interest rate rise of 0.5%, SQM Research expects Sydney property prices will continue to grow by at least 8-13%.
So which Sydney suburbs are likely to show the most growth?
Here are our top 5 picks.
Multicultural Merrylands is expecting its population to grow by 7000 people in just 4 years. Driving this growth are greenfield and commercial developments including a proposed $300m development involving mixed-use and residential apartments. The goal of this project is to create a new entertainment, retail and residential hub that will rival any city CBD precinct.
Creating vibrant, decentralised city centres drives desirability which in turn, increases property values. That’s why Merrylands is one of our top property picks in Sydney.
Liverpool’s new Skyhaus project is providing residents with picturesque views of Sydney’s CBD, the Harbour Bridge and planes taking-off from Sydney airport. Views like this in Liverpool were inconceivable a few years ago. But the suburb is enjoying a massive boom that’s transforming the area into a vibrant place to live, work and play.
Another trend benefitting the Liverpool area is the recognition that riverside living can be an attractive and cost effective alternative to beachside locations. Projects like the Paper Mill along the Georges River are helping to change people’s perceptions of water views and boosting residential property prices in the area.
Rouse Hill & Bella Vista
Heading North, the suburbs of Rouse Hill and Bella Vista are profiting from major government infrastructure projects as well as private developments. As a result, both suburbs are expecting a collective population growth of 53% over the next 10 years.
Infrastructure projects include rail stations at both locations as part of the North-West Rail Link. The rail line is a game-changer because it provides a direct link to inner Sydney.
In addition, the NSW Government is currently investing $300m to expand Rouse Hill Town Centre with plans for a new Rouse Hill hospital to be completed by 2022. There are also plans to expand and improve the Norwest Private Hospital and the nearby CircaRetail Shopping Centre.
To accommodate the rapidly growing population in the area, the State Government has released land to provide affordable housing. Developments for commercial, mixed-use and residential properties are continuing at a rapid rate. This activity is driving property prices in the area making it a sound investment for owner-occupiers and investors alike.
Final plans are underway to completely transform Frenchs Forest. Among the proposed plans is a high street-style town centre incorporating shops, restaurants and small bars as well as a swimming pool, intertwining bike and pedestrian pathways and apartment towers up to 12 storeys high.
The plans also include a $1billion investment to build a new hospital and $500m upgrade to roads around the precinct. To accommodate the population growth that will occur as a result of the suburb’s redevelopment, there are plans for further investment to build bigger schools and shopping centres.
It is estimated there will be significant job growth in Frenchs Forest once the transformation is completed with the hospital and town centre expected to create 4300 new jobs.
The combined effects of lifestyle and employment opportunities are making Frenchs Forest an even more desirable location to live.
An icon of Sydney living, Kirribilli offers magnificent views of Sydney Harbour and the CBD. But in recent times, development of this beautiful inner city area has stagnated with investment hampered by a lack of parking.
North Sydney Council is about to change all of that with plans to re-activate the precinct. Central to the Council’s plans is construction of premium residential, retail and commercial properties that incorporate parking for residents and visitors.
With its inner-city vibe and affluence, Kirribilli is on-track to achieving a revitalised feel and ever increasing desirability. This is certain to positively affect property prices in the suburb.
Coming soon …
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