Areas of Sydney have been tipped for ‘almost guaranteed’ growth over 2013 on the back of a number of drivers, according to property experts.
Western Sydney and the Hills District have been pointed out as potential hotspots by CEO of Starr Partners, Douglas Driscoll, who cites low interest rates and major developments as reasons for a potential price boost.
“Buyer confidence is high and if the economic climate remains steady, we will most likely see properties being snapped up by investors and first home buyers who are poised to take advantage of good rates and the strong likelihood of rising house values in 2013,” said Mr Driscoll.
“Starr Partners has seen an influx of first time buyers investing in properties in the greater west, due to their attractive rental yields. With interest rates now at their lowest in recent years, 2013 will see increased numbers of younger investors into the western Sydney property market. Despite this, the traditional investor will still drive the market,” he said.
However, the Hills District will see growth for a different reason. The new north west rail link will see Hills District markets, including Kellyville and Rouse Hill, attracting attention, Mr Driscoll predicted.
However, these won’t be the same type of new investors jumping in, Smart Property Adviser’s Kevin Lee told Smart Property Investment.
“This is an affluent area with many private schools; some would say that the average resident in The Hills shire has a greater disposable income than the lower north shore and many eastern suburbs,” said Mr Lee.
He explained that his experience in the finance and investment property education sector supports this idea.
For this reason, the issue for buyers looking towards suburbs such as Castle Hill, Baulkham Hills and Kellyville is the lack of affordable properties.
According to RP Data, the median price for properties in the Hills District is around $600,000.
At 30km from the city, “I don't think younger investors will be drawn to those prices,” said Mr Lee.
With the new station set to be built over the next five years, the signs are still promising however.
“My 'crystal ball' suggests that many houses within 700m of each railway station will (in the medium term) be re-zoned to medium or high density, and these sites will be sold, amalgamated into development sites, and unit blocks constructed,” he said.
Mr Driscoll said that, as a result, investor activity is going to grow.
“As we move further into 2013 we will begin to see increased investment in these suburbs and surrounds. Property price increases in the Hills District is almost guaranteed in 2013,” said Mr Driscoll.