Poor performers have best potential
Investors should consider buying in Sydney’s underperforming suburbs, according to an online real estate portal.
Onthehouse.com.au consulting analyst John Edwards said buyers might be losing out by purchasing in suburbs with strong capital growth.
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“Strong performing suburbs are often areas which have already seen a majority of their growth for this current cycle,” he said.
On the other hand, suburbs with more sluggish growth may be poised for big gains.
“The poor performers are probably yet to see significant growth during this cycle and may offer investors very good growth prospects,” he said.
Mr Edwards said investors who understand growth cycles have an advantage in identifying investment opportunity.
“If you combine the knowledge about a suburb’s growth cycle along with research data, suburb information and if you find out what the public considers the best streets are, then good buying decisions should result,” he said.
Onthehouse identified the five worst performing suburbs for houses in Sydney as Green Valley, Gymea Bay, Freshwater, Elderslie and Balgowlah Heights.
At the other end of the spectrum, the strongest growth occurred in Kingsford, Doonside, Sans Souci, Jordan Springs and Rydalmere.
