New data that predicts the next property hot spots based on new car sales has pinpointed Greystanes, Greenacre and Smithfield as Sydney suburbs set to boom.
Greater Data CEO Georgie Brown said the company can draw direct comparisons between vehicle sales and real estate property prices to find suburbs that are likely to experience a boom in property prices.
“We found when you look at car sales at Greystanes peaking at 11.9 per cent, sales in Greenacre peaking at 18.9 per cent and sales in Smithfield peaking at 4 per cent all within a 12-month period (May 2018 to May 2019), a property upswing is likely to be on the cards for these suburbs by this time next year,” he said.
“There are some areas where the median value of a car is a leading factor in property prices.”
John Azzopardi is looking to buy in the Greystanes area at the moment and agrees with the claim the suburb is close to a property upswing.
He believes there may be a correlation between car and property purchases as, according to him, people tend to “be a bit looser with cash when they feel a bit rich.”
“I guess people looking to buy a new house are also looking for a better lifestyle and better toys,” he said.
“I think the relationship is more about buying your next property and a car afterwards.
“Funnily enough when I bought my house (in nearby Pemulwuy) three years ago I soon after bought a Toyota Kluger brand new then a corolla for my wife – nothing fancy as we just wanted a new car to drive around but we focused on buying the property first and car afterwards and we paid for it after saving from our income.
“We are now looking for a bigger home and in probably another six months will be ready but we will hold those cars for a while as we will lose too much money to sell and replace now.”
Miraz Alikozay is looking to buy in the area as well, but believes there is a stronger tangent between family size and buying a new car.
He said the last thing you should look at when considering buying an area are median car prices. Infrastructure is what you should keep your eye on.
“The older generations want to get away from infrastructure and the younger generation want train stations and public transport options but these days the biggest drawcard to an area seems to be infrastructure – the last thing is buying a car,” he said.
“The reason I’m looking to buy in Greystanes is it more central to me work wise and I bought a car last year because I have a bigger family and I did it solely to keep the missus happy.”