The Sydney property market has offered a wild ride for investors the last few years. With record high prices reported year after year and the fever for properties in many of Sydney’s suburbs, some have begun to wonder when it would slow down…or if it would slow down. There’s no doubt that at some point, there will be a slow down, but how much and where has yet to be seen.
In 2015, we continued to see double digit growth in the market with median house prices up 30% over two years ago, and breaking the $1 million mark for the first time over the winter. Whether this is a bubble or a serious reflection of the market value of these properties remains to be seen, but for those interested in investing, it’s important to know where the demand currently sits, where growth will continue in 2016, and which suburbs offer the kind of potential growth we’ve continued to see in recent months and years.
Top 5 Sydney Suburbs for 2016
Tempe – Inner-West
The Inner-west in general has been hot for a long time and will likely continue to be so due to its proximity to Newtown, Sydney University, and the city. The rental demands here are high and there is a good mixture of owner-occupation that makes for an enticing neighbourhood environment.
Dulwich Hill – Inner-West
For many of the same reasons, Dulwich Hill will likely remain hot into 2016. Located less than 10km from the CBD, it offers easy public transport options, is near Marrickville and the Cooks River and a nice diversity of different types of housing for both rental opportunities and owner-occupiers.
Parramatta – West
With the recent $2 billion Parramatta Square project green lit, the population here will only continue to grow, and the apartment market is going to continue booming as a result. While the prices may put it beyond many investors, this is looking like a smart area in which to place your investments in the coming months and years.
Forestville – North Shore
Forestville has seen a sizable shift in demographic in the last few years. Thanks to its proximity to the beaches, quick commute via bus to local destinations, and generally family-friendly community and layout, this is a place where many families have set their sites in recent years and the investments have come as a result.
Considered generally more affordable than Manly and many of the other nearby beach communities on the Northern Beaches, Dee Why has been underrated for years. With the current overhaul occurring on the main strip and new properties having recently been approved and in development, the improvements here are going to make it an enticing investment opportunity in the area.
Where to Set Your Sites in 2016 and Beyond
While some people are forecasting doom and gloom for the Sydney property market, a smart investor will see the gold still out there to be mined. Yes, the years of double digit growth in almost all suburbs will likely be gone in 2016, but with underrated suburbs rising in popularity, and the market continuing to support the heavy demand because of high rental needs, there are definitely opportunities still to be had here for those that know where to look.