The 2022 federal election: What to expect for housing affordability
Unless a structural change to the Australian economy takes effect, greater housing affordability is not likely to happen...
A new report has identified several Sydney suburbs that are tipped to record double-digit growth in 2022.
Shore Financial’s State of Sydney Report has crunched the data on over 600 Sydney suburbs to identify which ones will stand out in terms of growth in the next year.
The report grouped the suburb into five quintiles based on their current median asking price for houses, with the five groups identified as Working Class, Suburban, Rising, Professional and Elite Sydney.
Working Class Sydney suburbs designated as Quintile 1 have the lowest average prices while suburbs in Elite Sydney (Quintile 5) have the highest median asking prices.
To identify the top-ranking suburbs, the report first weeded out those that didn’t cut the mustard on certain benchmarks and trends related to asking prices, days on market, inventory levels and sales volumes over the previous three months.
Next, the remaining suburbs are ranked based on the forecasted growth in asking prices over the next six months.
Standout suburbs that topped the list for each quintile are Rydalmere (Suburban Sydney), Kellyville (Rising Sydney), Ashbury (Professional Sydney) and North Bondi (Elite Sydney). (Working Class Sydney),
Leading the pack is Rydalmere from the Suburban Sydney group, with a forecasted growth of 17.4 per cent in the next six months. This is closely followed by North Bondi (Elite Sydney), with asking prices for houses in the suburb seen to surge 16.9 per cent in the same period.
Meanwhile, Ashbury in the Professional group and Kellyville in the Rising group are seen to notch 15.3 per cent and 12.6 per cent, respectively.
Only Campbelltown from the Working Class Sydney group did not hit the double-digit growth forecast, with asking prices for houses in the suburb expected to increase 8.6 per cent in the next six months. However, it still managed to outrank other suburbs in its group in terms of expected growth.
Shore Financial CEO Theo Chambers said the report provides valuable data for first home buyers, investors and upgraders, wherever their price-point is at.
“This quarterly report focuses on leading indicators, rather than lagging indicators, which means instead of talking about how prices have changed in the past, it forecasts how prices are likely to move in the next six months,” he said.
Mr Chambers said that the top suburbs in the report have low inventory levels and low days on market, indicating that they are strong seller’s markets. Because of the tight market conditions, he elaborated that buyers will need to compete hard to outbid other purchasers, which is seen to drive significant growth in the near future.
However, Mr Chambers said buyers should on the report when planning their next purchase.
“Buyers should do thorough due diligence and evaluate a wide range of criteria before buying a property,” he advised.
Here is a closer look at the top five suburbs for each quintile and their forecasted growth for the next six months:
Working Class Sydney’s Top 5 suburbs
Suburban Sydney's Top 5 suburbs
Rising Sydney's Top 5 suburbs
Professional Sydney's Top 5 suburbs
Elite Sydney's Top 5 suburbs