Homebuyers ‘value for money picks’ revealed
Sydney homes are expected to see weaker price growth in the coming months and that means there are some value buys for homeseekers out there.
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The good news for property owners is last year’s unexpected price growth trend looks set to continue in 2024, although probably at a reduced pace.
The consensus among residential valuers at Herron Todd White (HTW) is capital gains will return to steady, long-term averages in most markets. But they anticipate pockets of strength and weaknesses across Sydney, according to their February update.
The southwest Sydney market is tipped to soften with increased listings, coupled with buyers being more cautious.
HTW expects the traditional unit market around Liverpool and Campbelltown will struggle due to the lack of new infrastructure, lack of nearby employment opportunities and decreased confidence due to building construction issues.
But greenfield developments such as Oran Park and Ed Square will continue to see strong interest from first home buyers, downsizers and investors.
HTW’s “value for money pick” is the fringe Campbelltown LGA suburbs such as Ruse, Airds and Bradbury where houses cost under $800,000.
HTW also anticipates continued strong demand for entry level houses in the north shore suburbs of Ryde and Lane Cove with the growth trend expected to extend to Gladesville and Riverview.
With rentals on the rise and overseas migration continuing to be high, the north shore apartment market is “poised for further strengthening.” Units constructed between the 1960s and 1990s remain the HTW choice for the best value.
It anticipates the oversupply in some suburbs of high density will “reduce dramatically”, benefiting from immigration.
“This unit market could be further fuelled if interest rates do come down,” the report notes.
The Northern Beaches property market is poised for mild growth, with sustained demand and limited housing supply.
The last quarter of 2023 in Sydney’s south saw “a lot of homeowners attempting to retain their properties for as long as possible, even if they are under financial stress”. A potentially large increase in supply coming in the south could “have a negative effect on prices”. It pinpointed the most affordable suburb in the Sutherland Shire as Engadine.
Stable gradual price growth is expected in the inner west. But its apartment sector sees a risk of a decline, especially around Homebush and Strathfield.
Properties situated in secondary locations, such as those affected by a busy road or railway line, are expected to be at a higher risk of a decrease in value.
Interest rate speculation is likely to hold strong influence over buyer behaviour in Sydney’s inner city suburbs, HTW forecasts.
HTW has noticed an increase in listings across Sydney that usually bodes well for buyers, but it anticipates demand and prices will also track higher.
Those who already own look set to enjoy the benefits of the supply/demand imbalance “for a while yet”, according to valuer Kevin Brogan.
Originally published as Homebuyers ‘value for money picks’ revealed
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