Real Estate

Sydney’s best and worst performing suburbs for property prices in 2018

Written by The ReReport
As seen in the Source link, written by on 2018-12-15 03:50:36

House prices may be plummeting in most of Sydney but in the city’s cheap fringe areas and satellite towns they have continued to record red-hot growth.

A new report wrapping up the year’s top performing suburbs revealed the Central Coast and Sydney’s outer southwest and Pittwater area were among the few bright spots in the market this year.

The areas recorded the highest jumps in house values at a time when prices across the city as a whole went an average of 8.1 per cent backward.

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The biggest price surge was in the semirural suburb of Oakdale 85km southwest of the CBD, where the cheap blocks of land have become increasingly popular due to the development of the nearby Badgerys Creek airport.

Oakdale’s median house price ballooned by 18.1 per cent to hit $701,547, according to the CoreLogic Best of the Best report.

Other suburbs where prices increased by more than 10 per cent included Scotland Island in the Pittwater area, Central Coast enclave MacMasters Beach and The Oaks, another suburb in the southwest.

Londonderry, just north of Penrith, had a 7.5 per cent lift in house prices.

Many of the houses in these areas tended to be priced under $800,000 — well below the Sydney median of $935,713.

Apartment buyers also favoured cheap real estate, but tended to buy closer to the CBD.

With median unit price growth of 22.8 per cent, the top performing suburb for unit prices was Eastgardens in the southeast.

Areas with above average apartment price growth of 4-7 per cent were Smithfield, Umina Beach and Belrose — all have median unit prices under $600,000.

The strong performance of cheaper suburbs was a contrast to the Sydney suburbs traditionally popular with upper middle-income families, which recorded the biggest falls in prices.

House values in the suburb of Parramatta had the sharpest decline, falling back 26.9 per cent over the year.

Similar falls were recorded for median house prices in St George suburb Kogarah, Roseville Chase and Galston on the north shore, Lilli Pilli in the Sutherland Shire and Russell Lea and Lewisham in the inner west.

Median house prices in these suburbs ranged from $1 million to over $2 million.

CoreLogic analyst Tim Lawless said the varying fortunes of Sydney’s cheaper and pricier markets were the result of the restrictive lending environment, which encouraged buyers to rein in their budgets.

First home buyers have also become the dominant force in the market and have gravitated towards cheaper areas, he said.

“With first homebuyer numbers substantially higher over the past year, it’s no surprise to see some of the lower value suburbs on the list,” Mr Lawless said.

“First homebuyer numbers have surged higher on the back of stamp duty concessions as well as improving affordability as housing prices slip lower.”

One of the few premium markets to defy the trend of falling prices was Mosman.

The popular north shore enclave recorded more than $1.42 billion worth of home sales over the year — a greater value of transactions than any suburb in the country.

Local agent Dino Gatti of The Agency said the high sales turnover was driven by home buyers taking advantage of improved buying conditions.

“They have more of an opportunity to negotiate prices than they did a year, two years ago, and that’s made a difference,” he said.

Mosman homeowners Noz and Kathryn Ogawa, who are selling their five-bedroom property at 46 Burrawong Ave, said the area was quickly becoming more popular.

“More shops are coming in and it seems more people want to come here,” Mr Ogawa said.

Castle Hill was another bright spot for the market, recording half a billion dollars in transactions as buyers scrambled to get into the area before the opening of the Sydney Metro Northwest train link next year.

Sunny Gandhi of The Agency said the raft of infrastructure improvements coming to the area staved off some of the impact of the downturn.

“Nearly $1 billion is being spent on upgrading Castle Towers shopping centre. They’re improving the roads and the rail is coming. It’s grown the appeal of what’s already a very family friendly area,” he said.


Biggest 12-month growth in prices: Oakdale (houses) Eastgardens (units)

Highest value of sales: Mosman $1.42 billion

Most expensive suburb: Bellevue Hill

Cheapest suburb: San Remo

Cheapest suburb 10km from CBD: Arncliffe (houses), Eastlakes (units)

Best rental returns: Carramar units (5.1%)