Over the three months to October 2019, Sydney relinquished the distinction of top-performing property market to Melbourne, but it remains a force to be reckoned with as dwelling prices increased by 5% in this period to hit a median of $817,886.
The CoreLogic Home Value Index for October 2019 reports that the best growth conditions in Australia’s capital cities are still centred around Sydney and Melbourne, which continue to benefit from a thriving job market, population growth, low mortgage rates and better credit availability. In particular, the top quartile of these two markets showed the most rapid increase in capital city dwelling values, with Sydney recording a 5.9% boost. In the middle and lower quartiles, values were up by 4.6% and 3.2%, respectively.
While some subregional areas of Sydney reported significant value drops over the year, regional NSW has been performing remarkably well, with dwelling values rising by 3% in Illawarra over the October 2019 quarter.
A media release from the Dahua Group also noted that the growth corridor in southwest NSW has been undergoing quick expansion. Specifically, the city of Campbelltown has been growing rapidly, spurred by infrastructure development. Bardia, Ingleburn and Bradbury are some of the suburbs reaping rewards from this growth.
Over in the Hunter region, the major regional centre of Newcastle has earned the distinction of being the first city to make the move to 100% renewable energy. The region has been moving in this direction for a while, with several projects focusing on renewable energy development. Such initiatives could be a factor stimulating economic growth in the district, which makes procuring land in low-density areas with growth potential crucial.
“In recent years, there has been substantially more land released for low-density [housing] in growth corridors of major cities. As a result, we’ve seen the uptick in first home buyers,” says Michelle Ciesielski, head of residential research at Knight Frank.
“Vertical site sales have been more prevalent in NSW with the new legislation for strata properties coming into operation in late 2016.”
Ciesielski notes that this legislation has helped bring the sales of vertical sites to a total of $1.45bn since November 2016, which represents “15.4% of development site sales ripe for regeneration”.
SUBURB TO WATCH
FORSTER:Buyers go for houses
Situated within the stunning Great Lakes region, Forster is surrounded by beaches. Water activities are very popular, and it’s a wonderful place for visitors looking to catch a wave or two. Dolphin and whale watching are popular activities as well.
Market activity has maintained growth in both house and unit prices, although houses have continued to record greater growth than units. Units are quite affordable at a median price of less than $400,000, while still offering positive growth prospects.
On the rental side, the weekly average rent for houses stumbled by 1.7% to $433, whereas that of units stayed at $300.
Tourism: Forster is bordered by beaches, making it popular with surfers and holidaymakers
Growth: In terms of capital growth, houses outpace units, but both markets are positive