A host of Sydney suburbs are set to see house prices grow by more than five per cent in the next six months, led by the more affordable end of the market.
The Shore Financial State of Sydney Report, predicts Springwood, Bossley Park, Cecil Hills, Collaroy Plateau and Middle Dural will be among the standout growth suburbs.
Shore Financial CEO Theo Chambers said Sydney’s median house price will be higher at the end of 2024, with more affordable suburbs leading the pack.
“Most suburbs should grow, but some will stagnate and a few will go backwards,” Mr Chamers said.
“The more affordable end of the market, in the western suburbs, south-western suburbs and Blue Mountains, is likely to experience stronger price growth than some of the more affluent suburbs, in the north and east of the city.
“However, whereas the vast majority of Sydney suburbs experienced growth in 2023, there’s likely to be more deviation in 2024.”
According to Mr Chambers, the more affordable areas, including Minto, Winmalee, Liverpool and Mount Pritchard all have a median price under $1 million and are predicted to see growth of more than five per cent.
While Bossley Park, Green Valley, Bass Hill, Georges Hall and Warrimoo are all slightly more expensive but also expected to see house prices increase more than five per cent.
Other suburbs that could see five per cent or more growth include Cecil Hills, Bankstown, Picnic Point and Middle Dural.
Mr Chambers said the Sydney property market had changed a lot in the past 12 months, and there were different views about what to expect from the year ahead.
“This time last year, we were emerging from a correction, and, while we thought the downturn was behind us, no one could say for sure,” he said.
“As it turned out, a year of uninterrupted growth followed.”
He said there are now two schools of thought around how things will play out over the next 12 months.
“One group believes house prices will soon decline, due to affordability constraints, and that Sydney’s median house price will be lower at the end of 2024 than the start,” Mr Chambers said.
“The other group believes demand will continue to outstrip very limited house supply, particularly if interest rates start falling towards the end of the year, and that 2024 will be another year of growth.”
Mr Chambers said 2024 auction results were already providing strong supporting evidence for those who expected Sydney prices to increase throughout the year.
“There’s been a significant year-on-year increase in both new listings and scheduled auctions, reflecting widespread market confidence,” he said.
“Buyers are confident about the future of the Sydney market, so sellers are confident about listing their home for sale.”
However, Mr Chambers said that whatever happened with market activity and prices over the next six to 12 months, it would probably be better for buyers to take a long-term view.
“If you’re an owner-occupier, it makes more sense to focus on where you want to live and what you can afford, rather than short-term price movements,” he said.
“True, some suburbs will outperform others, but that shouldn’t matter if you’re happy with your choice of home.
“If you’re an investor, it makes even less sense to focus on the short-term.”
He said anyone who invests in Sydney property likely believes that prices are going to grow over the long term.
“In that case, time in the market is more important than timing the market,” he said.
