It isn’t all over for the Sydney market, with a high-profile market commentator advising that there are still wins to be made – if you pick the right suburb.
Despite speculation of a market decline, there will still be opportunities for investors in Sydney during the coming year, according to head of SQM Research Louis Christopher.
The eastern suburbs will be the place to watch in 2016, according to Mr Christopher, having returned an underwhelming performance in comparison to the western suburbs up until this point.
“The tables are expected to reverse in 2016 with affluent suburbs set to be the growth performers. One of my top tips for the coming year includes the eastern suburbs, with growth predictions between eight to 13 per cent,” he said.
Return on investment potential has driven unprecedented growth in the western suburbs in recent times, leading to the relatively meagre growth in Sydney’s traditionally affluent areas.
“It is not surprising that affluent areas have underperformed compared to the cheaper suburbs. Units in the lower north shore grew by three per cent with a median price of $729,500. This area also recorded 0.1 per cent growth for houses with a median price of $2.250 million.
“Sydney’s west has been the star performer over the past three years, with units in the south-west region increasing by 52 per cent and reaching a median price of $439,000.
“Parramatta was the standout house performer, recording 53 per cent growth and a median price of $931,000. Investors and owner-occupiers, particularly first-home buyers, have been driven west due to the high property prices in the inner city areas,” he explained.
Mr Christopher will reveal Sydney’s best and worst-performing suburbs at this weekend’s Property Buyer Expo, providing advice on how investors can best capitalise on the fragmented market.
He slammed predictions that the Sydney market would crash in the coming year, arguing that too many growth drivers exist for such a dramatic shift to occur.
“Many are forecasting a property crash in 2016 in Sydney. This is certainly not my prediction," Mr Christopher explained.
“Sydney’s economic credentials are looking strong for the year ahead with a low interest rate environment set to continue, low supply levels, rising employment figures and major infrastructure plans already underway,” he said.
To buy tickets to the expo, click here.