Get set for the great renaissance of Western Sydney, says John McGrath in The McGrath Report, 2019.
REAL estate guru John McGrath has traditionally been a fan of the inner city and coastal areas, but now he’s telling property buyers to “go west” to make money.
“We are on the cusp of what will go down in history as the great renaissance of Western Sydney,” Mr McGrath said in his McGrath Report, 2019, released exclusively to News Corp.
Mr McGrath said his agents were reporting price drops of between 10 and 15 per cent in most suburbs over the past year and there could be further falls.
But he is optimistic about Sydney’s west in the longer term because of the huge boost in infrastructure, with billions of dollars in government investment, hundreds of thousands of new jobs and the new airport.
And it helps that some western suburbs are set to get a beach on the Parramatta River.
Western Sydney families will have even more options on where to cool off with three new swimming sites due to open along the Parramatta River by 2025.
On top on the list of his hot Sydney Suburb Picks is Putney, on the river south of Ryde.
CoreLogic data indicates houses have risen in value 15.9 per cent in the past year and 1.1 per cent in the past three months.
This contrasts with a 7.6 per cent drop in house values in Sydney overall.
However the data also shows that some vendors still being overoptimistic in Putney, with the typical discount over the past year at 5.9 per cent.
Reports this week of the a new swimming spot at Putney Park may further boost Putney property values.
Real estate John McGrath says adding a beach to a suburb could see a 5 per cent jump in property prices.
“Adding a beach could boost values by up to 5 per cent,” Mr McGrath said.
“It creates a lot of interest and sex appeal and I think it will become a very appealing thing for residents in Putney and adjoining suburbs.”
Both Concord and Rhodes East, where CoreLogic indicates prices are flat, are also set to get new beaches under the Parramatta River Masterplan, which was released to the public on Thursday.
Residents have a while to wait for the swimming spots — the masterplan extends to 2025 — but Belle Property’s Simon Harrison said even the anticipation of beaches will “bolster prices”.
Living the good life at Avalon Beach
Suburbs with a traditional beach still fare well on Mr McGrath’s list of suburbs with the best prospects.
Avalon Beach on the northern beaches is in second place because of its “world-class” coastal lifestyle and charming village shops.
Maroubra in the east is in third place because of its value compared with others nearby.
He also likes Earlwood because of its relative affordability, cultural mix and Turkish coffee in nearby Marrickville.
Stanmore also makes Mr McGrath’s top 5, as upwardly mobile executives and families and downsizers move close to the CBD from outer suburbs.
Downsizers may like this cute terrace at 4 Durham St, Stanmore, currently on the market for $995,000
Despite the cooling auction market, with only half of the homes put under the hammer selling most weekends, Mr McGrath said the auction process was still the way to go in most areas.
He said most homes were simply taking longer to sell with the clearance rates rising to 75 per cent or 80 per cent a month after the scheduled auction.
“Properties going to auction get marketed better — into the newspaper and online — whereas many private treaty properties just sit there under the radar,” Mr McGrath said.
Growth in outer areas have lagged the inner city and coastal areas in the past, now Mr McGrath they’ll now be on par.