Sydney is due for more big growth in property prices next year but home values are expected to grow the fastest in suburbs popular with first-time buyers and areas nearby coming transport infrastructure.
Property experts have forecast city prices as a whole will surge about 10 per cent for the year but there would be larger increases in suburbs becoming better connected to public transport, new research showed.
The review of coming infrastructure, first homebuyer preferences and public works projects by real estate group Starr Partners revealed price growth in Sydney’s southeast and southwest would likely “outperform” the rest of the city.
Today’s opening of southeast Sydney’s long-awaited light rail network will give Kensington and Pagewood home values a major boost, while the proposal to build a new train station at Crows Nest will also push up local prices.
The southwest would “outperform” because of the Badgerys Creek airport, Starr Partners revealed.
The group’s chief executive Douglas Driscoll said Oran Park was a standout market in the region because more people were coming there for employment.
This was boosting demand for housing at a time when more retailers were coming into the area, reducing the need for local residents to travel.
“A few years ago you’d have to spend your life commuting if you lived in a place like Oran Park but now jobs are there. It’s self-sufficient,” Mr Driscoll said.
The relative affordability of prices in the area also meant there was plenty of room for home values to grow further and at higher than the Sydney average, he added.
The median price of a house in Oran Park is about $700,000, $200,000 cheaper than the median for the Greater Sydney area, CoreLogic data showed.
Suburbs where prices have skyrocketed in recent months would not have as much growth potential because less home seekers could afford to buy there, Mr Driscoll said.
Hotspotting.com.au analyst Terry Ryder said prices in the Liverpool area would get a similar boost from infrastructure projects associated with the Badgerys Creek airport precinct.
The wider area was already the most popular choice for first homebuyers – which would be significant given the federal government’s first homebuyer deposit scheme due to launch January 1.
Mr Driscoll said infrastructure upgrades were also helping to gentrify parts of Sydney – and big price increases usually followed.
“We saw that in Redfern, which had some of the biggest increases in prices over the last decade,” he said. “Once people start buying up in areas that once had a stigma the prices go up rapidly.”
This effect would be apparent in Merrylands, where the local Cumberland Council is planning a major redevelopment of the local town centre.
“It’s changing rapidly,” local agent Daniel Starr said. “Merrylands has got a lot of bad press in the past and was put on the map for the wrong reasons but it’s becoming more appealing, we’re getting more interest.”
Long-time residents Dean and Rachel Clancy said they had noticed the increase in housing demand, which recently helped them sell their townhouse for a bumper price.
They will be moving to a home nearby. “We were extremely happy with the price. (The home) was only for sale three weeks,” Ms Clancy said.
“We like that there’s a new shopping centre and the homes are getting redeveloped. Our three-year-old loves all the water parks we have nearby.”
Other suburbs flagged for higher-than-average growth in home prices were Bellevue Hill and Summer Hill. These areas combined relative affordability compared to their neighbours with increasing popularity among well-heeled families.