Best suburbs to buy real estate in Sydney and NSW in 2022

As the supercharged property market shows signs of easing after a big year, where should homebuyers be looking for value in 2022?

Regional NSW will offer the country’s best opportunities for hopeful homebuyers to get rapid windfalls from rising housing values, while Sydney remains the top capital for potential value increases.

That’s according to new research provided exclusively to the Saturday Telegraph, which has given home seekers and investors insight into the best markets to buy in over the coming year.

The Rising Stars report by comparison group Canstar and research company Hotspotting measured locations around the country on five metrics to determine coming growth in home values.

Pagewood is one suburb nominated as a good buy in 2002. Picture: John Appleyard

These forward-looking indicators included rising sales volumes, a long pipeline of new infrastructure projects in the area, low vacancies and recent growth in rents and prices.

Based on this scientific approach, regional NSW was ranked the strongest market in the country, scoring particularly well on recent growth and infrastructure spending.

Hotspotting director and property analyst Terry Ryder said regional NSW was also benefiting from an “exodus to affordable lifestyle” trend as Sydneysiders sought out cheaper areas to make a sea- or tree-change.

The increase in demand from Sydney buyers, especially those fresh from selling their city homes for big prices, was driving up property values in various locations, Mr Ryder said.

“There is immense wealth in Sydney and it’s moving around the state,” he said.

Regional locations such as Blue Haven hold plenty of appeal.

“A lot of regional locations have become a lot more appealing and the work from home trend has helped that.”

Areas set to get a boost from the “exodus” trend included Central Coast suburbs Toukley, Gwandalan and Blue Haven, along with, further north, Warners Bay in the Lake Macquarie area.

All had median house prices under $750,000 and easy access to a variety of water environments, including oceans and lakes.

Other regional markets like Dubbo, Goulburn, Cessnock and parts of Wagga Wagga had strong local economies and a raft of new infrastructure projects set to attract new workers.

“The NSW economy is one of the best in the country and infrastructure spending is a major part of that,” Mr Ryder said, adding that projects boosted jobs and prices.

But it wasn’t just regional NSW with prospects of growth.

WHY SYDNEY REAL ESTATE IS VALUE FOR MONEY

Sydney was considered the top capital city market for further price rises, despite already recording massive jumps in prices.

Sydney was an example of “the underlying truth of Australian real estate in 2021 – that it’s rising because of the pandemic, not despite (it),” the Rising Stars report said.

“COVID-19, and the reactions to it from governments and from individuals, has unleashed forces that have nourished Australians’ desire to buy real estate.”

These forces ranged from government stimulus measures, families saving more in lockdown, the return of expat Australians and few homes being available for sale at a time of high demand.

Many Sydneysiders also viewed real estate as a safe haven during the uncertainty of the Covid-era, the report said.

The Shire is booming according to auctioneer Andrew Cooley. Picture: Darren Leigh Roberts

Sydney’s best growth markets over the coming year tended to be suburbs where prices were more affordable than in surrounding areas, but with good transport links or proximity to lots of amenities.

“They’re the areas where there is a perception you can still get value for money,” Mr Ryder said.

Suburbs in this category included Bass Hill and Yagoona in the Canterbury-Bankstown region, Minto and Leameah in the southwest, and Jamisontown in the Penrith region.

Miranda was one of the top buying locations in the Sutherland Shire, which has become a magnet for well-heeled upsizers who recently sold houses in more expensive parts of the city.

Local residents Camille and Matt Kenny said they moved to the area four years ago because of the better value for money and larger blocks.

They’ve noticed a recent surge in others doing the same.

“It’s very close to everything and you get a bit of everything,” Ms Kenny said.

“We’ve been very happy here.”

The couple are cashing in by selling a Hamptons-style house they renovated on Sandra Place and will go to auction in late November.

Local agent Lucas Harwood, director of Harwood Property Agents, said more families were seeing value in the area.

“We are currently seeing a significant increase in buyers from the eastern (suburbs) and inner west suburbs looking to purchase in Miranda,” he said.

“Changing working conditions during Covid have made the area an attractive option for buyers looking to balance working from home with an easy commute to the city … (There’s) proximity to major shopping centres, beaches at Cronulla and a national park.”

Auctioneer and director of Shire-focused auction house Avenue Auctions Andrew Cooley said the entire region was “booming”.

Matthew and Camille Kenny pictured at 1 Sandra Place in Miranda which they are selling via auction. Picture: Sam Ruttyn

“The cheaper areas like Miranda are getting more popular because the prices have risen everywhere,” he said.

Money expert and Canstar editor-at-large Effie Zahos said buying in a growing market was vital for buyers, whether they were investing or wanted a home.

“Prices are rising and if you are borrowing a lot of money and your mortgage is more than 80 per cent, you want the value to at least hold its ground,” she said.

“You don’t want to be vulnerable. Prices don’t always go up, and they can fall in some locations. You don’t want to owe more than what the home is worth. To avoid that, you need to buy in an area where your equity will grow.”

The full Rising Stars report can be viewed here