According to reports, Sydney's property prices have experienced unprecedented growth in the past 12 months and are still continuing to rise. While this is good news for homeowners, potential buyers are questioning whether it is a good time to buy in the current environment of high interest rates and living cost challenges.
Some property experts provide advice, suggesting that now might be a good time to buy near mature residential areas known for "houses with land." Especially in some mature residential areas such as hilly regions and some secluded suburbs in southwest Sydney, these places may not be as eye-catching as more popular neighborhoods but offer a similar lifestyle at a more friendly price.
Nerida Conisbee, Chief Economist at Ray White, stated that she considers mature residential areas near "houses with land" as her top choice for the new year. Given the relatively high construction costs for building new houses in the current situation, purchasing older residential properties in these areas is a wise choice. It has been reported that construction costs have risen significantly (27% nationwide), so in many places, the repurchase cost is higher than the current selling price of new homes.
Mathew Tiller, Director of Research at LJ Hooker Group, expects more housing supply for buyers to choose from in early 2024. He pointed out that suburbs where prices stabilized or even declined last year might become popular areas in 2024, as these areas are attractive to buyers due to their affordability. Additionally, suburbs with median prices more in line with budgets compared to neighboring areas are expected to see stable demand.
Some examples of areas considered hotspots for 2024 include Dee Why, Glenmore Park, and Raby. Reportedly, apartment prices in Dee Why dropped by 8.4% last year, the median house price in Glenmore Park decreased by 2.4%, and the median house price in Raby decreased by 1.8%.
Buyer's agent and author Lloyd Edge emphasized that a good investment depends on purchasing the right property at the right price. He highlighted areas like Coogee as hotspots for 2024, similar to Kingsford and Kensington. Coogee is an upscale coastal suburb in southeast Sydney that is on the verge of a substantial increase in value due to upcoming infrastructure projects, such as the $2.2 billion Southeast Light Rail.
Kingsford is a residential area located just south of the University of New South Wales, very close to Coogee Beach, and will also benefit from the Southeast Light Rail project. Kensington, located in the Randwick municipality and known for landmarks like the University of New South Wales and the National Institute of Dramatic Art (NIDA), will also benefit from the Southeast Light Rail project.
Leanne Pilkington, CEO of Laing and Simmons, stated that investors are selling properties in Sydney, with some also selling second homes, creating opportunities for first-time homebuyers, especially if they can arrange their finances sensibly. When making investments, considering infrastructure and the level of development in an area are key factors. Ms. Pilkington pointed out that Sydney's metro transport plan will further expand, increasing the attractiveness of certain areas.
Additionally, researching an area and the price changes over the past year is crucial when purchasing a home. Most importantly, buying a house in a location that is significant to individuals and meets family needs is essential.
