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Property investors are salivating at the prospect of 2020 bringing growth to all capital cities across the country.
It is worth noting Australia’s largest markets, Sydney, and Melbourne, are likely to see a significant increase of home values of over 5 percent in the next 12 month.
Upside has released a report predicting that Sydney suburbs will experience a return of growth from 2017’s boom years.
“After a two year slump, property prices in Australia’s capital cities are on the rise.” Australia’s two biggest housing markets, Sydney and Melbourne, recorded quarterly growth of 6.2 percent and 6.4 percent respectively to last month, according to CoreLogic’s Hedonic Home Value Index,” says Upside founder Adam Rigby.
“Nationally, house prices rose 1.7% more than December 2019, which was the fifth consecutive month of increases. This was in addition to the largest monthly gain since 2003 for the national index.”
Mr Rigby has identified five key Sydney suburbs he believes present incredible opportunities for investors and first homebuyers alike – and they’re not all blue-chip locales.
Upside predicts that five of the top five Sydney suburbs would grow in 2020
1. Arncliffe:Arncliffe can be found approximately 10 km south of the CBD. It is a great opportunity for investors and families looking for a balanced suburban-urban lifestyle.
Arncliffe had a median house price of just over $1m, which was the lowest within 10 kilometers of the 2019 median house prices. Arncliffe is expected to see increased interest due to its proximity to Westconnex which is nearing completion. Arncliffe is worth keeping an eye on as neighboring suburbs Sydenham, Tempe and Tempe have experienced strong 12-month median property prices growth.
2. Eastlakes:It is the suburb that has the lowest median home price within 10 km of CBD at approximately $588,000. It also has the highest rental yield. It is close enough to the CBD that it has a significant difference in price with other suburbs. There is plenty of room for growth.
There are many options for renovations in older buildings. A bathroom or kitchen remodel could increase the property’s worth.
3. Crows NestCrows Nest is just 5km north of the CBD and offers a variety public transport options for its residents. Balmoral beach can be reached in a 10 minute drive. This makes it a popular spot for young professionals and families.
Crows Nest has a lot to offer, not just for now, but also long-term growth through the proposed metro station as well as large mixed-use developments that revitalize Pacific Highway.
It offers both entry-level homes and more substantial family homes for a low median cost of $900,000. Both can expect to see a lot of growth.
4. Blacktown:Blacktown is a community that has existed for many decades. It has seen significant growth over the past few years and shows no signs that it is slowing down.
This area is known for its multiculturalism and local attractions. Young families will love it. The suburb is connected by the Metro Northwest line to Sydney’s Western suburbs. It is just a short ride by bus.
Blacktown and its suburbs, including Lalor Park, are ideal places to buy a first home. Their Median House is approximately $660,000 and their units prices are approximately $430,000.
5. Wyong, Central Coast:This suburb in NSW is located just 90 km north from Sydney and 70km away from Newcastle. There are many ways to save money, both for families and investors. The three-bedroom homes below $300,000.
With train services, you can commute to Sydney in just 2 hours (or 45 mins). Newcastle is only one hour away. It is well-equipped with amenities such as a Westfied and public hospital. There are also University of Newcastle campuses nearby. The city is on a path to rapid growth.
The median unit is $319,000 and the gross rent yield is 5.5%.