The market conditions in Sydney are expected to be favourable to investors planning to sell this year, according to a market study by Upside.
Sydney was able to record a 1.7% gain in dwelling values over the month of December, continuing a five-month recovery trend. Over the quarter, it registered the highest growth at 6.2%.
"Looking forward to 2020, further price growth is expected to be underpinned by low interest rates, stronger population growth and ongoing low unemployment," the study said.
Homes in the city are expected to realise up to 5% growth in values this year, while unit values are poised to jump by as much as 4%.
"For those thinking of selling property in Sydney, 2020 could be the right time to go to market as auction clearance rates hold steady," the study said.
Furthermore, buyer sentiment in the city is expected to be positive, with home loan issuances tipped to grow by 2% over the year.
Three suburbs are expected to rise as standouts this year: Arncliffe, Eastflakes, and Crows Nest.
Arncliffe sits on the fringe of the 10-kilometre metre radius of the central business district. It has the lowest median house price within the area at just a little over $1m.
"Arncliffe provides great potential to both investors and families looking to find the balance of city and suburban life," the study said.
The suburb's proximity to Westconnex, a 33-kilometre underground motorway, could add to its appeal.
In terms of apartment units, the one to watch out for is Eastflakes, which had the lowest median unit price amongst suburbs within 10 kilometres of the CBD.
"With its proximity to the city and a sizeable price differential between it and surrounding suburbs, there is certainly room for it to grow," Upside said.
The suburb also possesses renovation opportunities that could further add value to older properties.
Crows Nest is another suburb to consider — it is located just five kilometres away from the city-centre. The suburb's main appeal is its accessibility.
"Close to the city, with Balmoral beach about a 10-minute drive, the nightlife is also bustling, which makes for an ideal location for young professionals and families," the study said.
Units are the ideal housing type in the suburb, given the median price of $900,000.
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