Western Sydney suburbs where property prices will grow

These are the suburbs of western Sydney that offer lower crime rates, ample green space and the potential for strong growth in home prices.

They’re the once unfashionable Western suburbs that have been declared Sydney’s “most affordable and liveable” in a new study.

PRD just named Villawood, Chester Hill and Wiley Park as having the perfect mix of lower prices and greater amenities.

These suburbs were deemed to have lower crime rates, ample green space, good access to employment hubs, unemployment below the city average and a growing commercial sector.

Critically, they also had a long pipeline of planned infrastructure improvements, which suggested coming local economic growth, property price increases and gentrification.

This means the window is closing for buyers to get in there while the prices are comparatively lower.

George Younan outside his home in Guildford, one of the suburbs, said recent changes were noticeable. Picture: John Appleyard

“When you look at factors that make the most difference for liveability, it’s those coming projects that stand out,” said PRD economist Diaswati Mardiasmo.

“That’s what sustains growth, revitalises areas and improves the socio-economics. And it’s what these suburbs have. They have the potential to be really good suburbs.”

Ms Mardiasmo added that there was a wider gentrification occurring across Western Sydney.

“The west has been going through a lot of development,” she said. “There is a big focus on infrastructure upgrades aimed at making it easier to live there and too also create another CBD (in Parramatta).”

Median prices at Villawood are particularly low by Sydney standards, with its $855,000 typical cost of three-bedroom houses well under the city median of about $1.3m. Four-bedroom houses in the suburb are typically $883,000.

Four-bedroom houses in Chester Hill and Wiley Park are usually under $1.05m. Equivalent houses in much of Sydney’s north, east and south were often well over $2m.

This Villawood home recently sold for $730,000.

The best suburbs for apartment buyers wanting a “convenient lifestyle” and relative affordability were Telopea, near Parramatta, as well as West Ryde and Canterbury, according to PRD.

Suburbs that also scored highly for unit seekers – albeit not as strongly as the top three – were Harris Park, Roselands and Hurstville.

Other solid options for house buyers were Guildford, South Granville, Granville and Merrylands – but they were considered to score better on affordability than amenities and lifestyle compared to the top three.

Real estate agent Daniel Starr of Starr Partners said buyers who looked in these areas were often surprised at the quality of the amenities, given many had a “stigma” from previous years.

Mr Starr said Guildford was particularly good value at the moment because a recent train line upgrade had improved access and the blocks tended to be larger. The median house price in the area is $955,000.

“We are getting a real mix of buyers now coming from all over because it’s a good family area, but it’s a lot more affordable,” he said.

“A lot of this (part of Sydney) has a bad rap, but people are surprised when they come here. It’s a common conversation we get. People from out of the area don’t always realise how good it is.”

Long term Guildford resident George Younan, who is selling his home on Bolton St and seeking a new home in the area, said outsiders were reacting differently to the area than in the past.

“Things have got a lot better. A lot of things have been moved forward,” he said.

“It’s always had the train line there, but the services are now more frequent, there’s more buses. You can get onto the freeway easily. It makes everything pretty close.”

PRD chief economist Dr Diaswati said many of the most liveable and affordable suburbs were gentrifying.

Cooley director and auctioneer Michael Garofolo, who has called many auctions in the region, said the same gentrification process that occurred in the inner west over previous decades was emerging.

“These areas won’t be cheaper forever,” he said. “In five years, all those properties well be well over $1m the way things are going. We’ve seen this process before. It’s cheaper for a while, then people find out about it and the prices go up.

“Then you see the older houses get knocked down and replaced with new housing, the schools get upgraded, and it becomes a very popular, but much more expensive area.”

It comes as the latest PropTrack Market Insight Report found Greater Sydney prices could inch above their last peak in early 2022 by November if they continue to grow at the same pace as over the past quarter.

Prices had reached a record high in February 2022 after nearly 18 months of boom conditions before interest rate rises and negative market sentiment pushed down prices over much of 2022.

PropTrack senior economist Eleanor Creagh said Sydney prices could become more expensive than the last peak because of rampant housing demand, listings shortages and sluggish housing construction.

“Housing demand is stronger, likely bolstered by the surge in net overseas migration, as well as very tight rental markets,” Ms Creagh said. “Given limited new stock is coming to market, buyer interest is being concentrated, which is underpinning home prices and offsetting the downward pressure from interest rate rises.”

Originally published as Western Sydney suburbs where property prices will grow