With home prices rebounding across Sydney in recent months, a number of high-profile suburbs including Kogarah Bay, North Bondi and Paddington are tipped to see even more growth, according to a new report.
The Shore Financial State of Sydney Report found that a number of suburbs across a range of price brackets could potentially see capital growth in the next six months, led by tight inventory levels and rising immigration.
The report predicted the more affluent suburbs, such as Kogarah Bay, North Bondi and Paddington, would see values rise by as much as 3 per cent, based on analysis of asking prices, days on market, inventory levels and sales volumes over the previous three months
Across the professional suburbs, Balmain is expected to see growth of 4 per cent, while North Epping, Davidson and Terrey Hills are also expected to grow by 3 per cent in the next six months.
Mid-range or rising suburbs are expected to see slightly less growth, with only Alfords Point expected to grow 2 per cent.
The report predicted The Oaks would be one of the strongest suburbs in suburban Sydney in the next six months, with growth of 5 per cent, while Blair Athol would grow 4 per cent.
At the more affordable end of the market, Dean Park and Emu Heights will see values rise 3 per cent.
Shore Financial Chief Executive Officer Theo Chambers said despite the recent rises, it’s hard to tell what is going to happen across the broader market in the coming months.
“Prices are rising again in many suburbs, after falling for most of 2022 and the start of 2023,” Mr Chambers said.
“However, it’s too early to tell whether this is a dead-cat bounce or the start of another growth cycle.
Mr Chambers said low listings could potentially be adding to the upward pressure in prices.
“You could make the argument that this price growth is a false positive because the low level of housing supply is propping up prices,” he said.
“If and when more stock comes onto the market this will have an impact on prices but we don’t know exactly how much.”
“Conversely, you could argue that this demand is very real – due to a surge in migration and people coming to terms with rate rises – and that therefore the Sydney market has turned a corner.
“In that case, prices might continue rising in the city as a whole.”
Mr Chambers said the most in-demand suburbs all feature tight supply.
“Inventory levels are low in all these suburbs, which means buyers are being forced to compete hard to secure a property, putting upward pressure on prices,” he said.
“Furthermore, leading indicators suggest these suburbs have a very low likelihood of a surge in listings in the foreseeable future.
“They have strong market conditions that are likely to keep upward pressure on prices in the next six months.”
