Pockets of Sydney continue to see positivity – for investors, it’s a matter of knowing where to look
Sydney is still going through a correction period, but that doesn’t mean opportunities are not there for investors.
“If you split the market into price points, the bottom 40% of the market – with median prices of up to $830,000 – is showing the strongest performance due to a larger number of buyers in this range and higher yields for investors,” says property-buyer CEO Rich Harvey.
The top 10% of the Sydney market is also experiencing considerable growth, along with suburbs in desirable areas like those near the beach.
“Areas with a continued lack of supply and continuous demand are also faring well, such as beachside areas like Bondi, Manly and Mona Vale,” Harvey says.
Infrastructure upgrades play a role in the positive performance of these suburbs. Another contributing factor is improvements to the local employment market.
However, while a good chunk of Sydney suburbs are in the black, there are pockets that are struggling with too much supply, including Olympic Park, Breakfast Point and the Green Square region.
“These areas have had an influx of high-density construction and still have too much stock available and too high a proportion of investors to owner-occupiers,” says Harvey.
Build projects could do wonders for regional hubs
In the Dubbo area, a plan is in place to construct a new rail fleet and maintenance facility through the efforts of the CIMIC Group. The construction of the Western Sydney Airport is also expected to generate significant revenue for the Western Sydney district and could do wonders for the local economy there.
Similar initiatives are taking place in Goulburn, where the local council is looking to improve the suburb’s economic standing and job market.
“From 2016/17 to 2017/18, the region experienced strong growth in the manufacturing, construction, agriculture and healthcare and social assistance industries; 590 jobs were created in these areas over this period,” says Goulburn mayor Bob Kirk.
“We can look forward in 2019 to another year where Goulburn continues to grow and prosper to make us a more liveable city.”
Job availability increased by 3.9% in this pocket over the 2017/18 fiscal year, as a result of increased commercial investment in the Goulburn CBD.
SUBURB TO WATCH
GOULBURN: Economic growth could boost prices
House prices may still be falling in the suburb of Goulburn, but there’s a sense of optimism in the air as job growth has increased over the 2017/18 financial year.
With the retail sector reporting strong numbers for the commercial scene, this spells good news on the horizon for Goulburn’s residential property market.
The affordability of properties (with median values of less than $400,000 for both houses and units) certainly heightens the chances of seeing demand soar and prices skyrocket as available properties get snapped up in this area. The unit side of things has recorded stronger growth than the house market in the five years to January 2019.
Low-priced: Goulburn’s properties are affordably priced at a median of under $400k
Economy: There’s a growing job market in Goulburn, inspiring confi dence in the suburb
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