‘Biggest boom ever’: Sydney suburbs where home prices could skyrocket even more
Home values are set to continue rising in every Sydney region this year but some suburbs are expected to have monstrous hikes in prices because there are 50-60 buyers for each available property.
Sydney’s explosion in house prices is on track to become our biggest ever property boom, with prices set to continue rising in every city region this year.
New sales analysis showed there were 140 suburbs with “growth momentum” from rising sales volumes, suggesting further price rises were on the way.
The suburbs were spread across the city from Bondi to Penrith and from Hornsby down to Cronulla, with the northern beaches and inner west accounting for the biggest concentration of rising markets.
The two regions were flagged as the strongest markets in the city and prices were forecast to balloon even further, according to the Price Predictor Index released by research group Hotspotting.com.au.
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Other notable markets primed for particularly rapid growth were the Sutherland Shire and Blacktown.
Property prices have already skyrocketed in recent months, with CoreLogic data published earlier this week showing prices increased nationally at the fastest pace in 32 years over March.
Sydney had the biggest surge in the country over the month and it dragged the median price of a city dwelling up to a record $928,000. It also had the largest bump over the past three months at 6.7 per cent.
Rises in the northern beaches were even higher at 10.8 per cent, or about $180,000, for the three months.
Hotspotting.com.au director Terry Ryder said the current upswing had the potential to be the biggest on record.
It was also rare for so many parts of the Sydney market to fire at once – just 24 suburbs were classified as rising markets in mid-2020 and the increase to 140 was the highest since records began.
Mr Ryder said multiple forces would keep driving up prices, including a stronger than expected economy, lower than predicted unemployment and rock bottom interest rates.
The northern beaches and inner west were particularly strong markets because they were attracting returning expats and well-heeled buyers from the eastern suburbs, while listings were in short supply, local agents reported.
Mortgage Choice-Dee Why director James Algar said demand was outweighing supply so heavily on the northern beaches that further price rises were inevitable.
“It’s like Byron, widely regarded as a good place to ride out the pandemic,” he said. “For every house going to market there are 50-60 groups going through the opens.”
Many buyers were going into negotiations armed with huge budgets after realising the only way they could get into the market quickly was to get in more debt, Mr Algar added.
“It’s a necessary evil,” he said. “Most people have no hope of saving fast enough to keep up with price rises. By the time you save a big deposit, prices will have increased so much that you will need more.”
Home buyers Phil and Vanessa Machin said they can relate. They signed the paperwork on a home in Dee Why this week and had to increase their budget multiple times.
“The prices just kept going up. I can’t believe how much we had to pay in the end,” Mr Machin said. “We decided it was worth it. If we didn’t buy now it would only get worse and become more expensive.”
The couple felt pressured to make snap decisions at open homes, Mr Machin said. “You turn up and there are people literally queuing out the door. That is how ridiculous it is.”
Mortgage Choice-Castle Hill broker Scott Partridge said the market could get stronger precisely because it is already hot.
“When a market is strong it becomes a feeding frenzy, everyone wants a piece of the action,” he said. “The feeling is it will continue to take off and those who don’t get in now will find it harder and harder. There doesn’t seem to be any trepidation it could actually fall at some point.”
Recent buyer David Banks will move into his new Rouse Hill home this weekend and said he was thankful he didn’t have to keep looking.
“I’m glad it’s all over,” he said. “It was really tough. There are not many homes going around and they all sell quickly.”
SUBURBS WHERE SALES ARE RISING
NORTH
Avalon Beach, Beecroft, Cammeray, Cherrybrook, Chatswood, Collaroy, Cremorne, Dee Why, Epping, Forestville, Frenchs Forest, Gladesville, Hornsby, Lane Cove North, Lindfield, Manly, Mona Vale, Mosman, Naremburn, Newport, North Ryde, Pymble, Roseville, Ryde, St Ives, Thornleigh, Wahroonga, Willoughby, Wollstonecraft
EAST
Bellevue Hill, Bondi, Coogee, Darling Point, Darlinghurst, Kensington, Maroubra, Matraville, Paddington, Rose Bay, Woolloomooloo, Woollahra
INNER WEST
Abbotsford, Annandale, Ashfield, Balmain, Breakfast Point, Camperdown, Concord, Croydon, Dulwich Hill, Earlwood, Erskineville, Five Dock, Leichhardt, Lewisham, Lilyfield, Rozelle, Stanmore, Strathfield
WEST
Bankstown, Bass Hill, Baulkham Hills, Beumont Hills, Blacktown, Bossley Park, Bradbury, Cabramatta, Camden South, Cambelltown, Carlingford, Castle Hill, Casula, Currans Hill, Dundas, Eastwood, Edmondson Park, Ermington, Fairfield, Georges Hall, Glenfield, Glenmore Park, Glenwood, Green Valley, Gregory Hills, Greystanes, Guildford, Harrington Park, Harris Park, Ingleburn, Kellyville, Kings Langley, Leppington, Lidcombe, Marsfield, Mount Annan, Mount Druitt, Northmead, Penrith, Prestons, Riverstone, Smithfield, South Penrith, Spring Farm, Stanhope Gardens, Toongabbie, Wentworthville, West Pennant Hills, Westmead
SOUTH
Alexandria, Arncliffe, Bexley, Blakehurst, Botany, Cronulla, Engadine, Gymea, Hurstville, Jannali, Kirrawee, Kogarah, Menai, Minto, Miranda, Mortdale, Oatley, Penshurst, Picnic Point, Rockdale, Sans Souci, Sylvania
Source: Hotspotting
Originally published as ‘Biggest boom ever’: Sydney suburbs where home prices could skyrocket even more