State of Markets - NSW November 2014

By Staff Reporter

Property markets in New South Wales remain the country’s best performers

Over the 12 months to August, values in Sydney increased by 16.2 per cent, according to RP Data. As prices escalate, real estate is becoming increasingly out of reach for many buyers.

According to RP Data, 248 suburbs in the city have a median price over $1 million – a 42 per cent increase on June last year. Of the 25 most expensive suburbs in the country, 22 are in Sydney. In addition, the number of properties worth less than $400,000 in the city has plummeted in the past 10 years, now sitting at just 13.5 per cent.

Despite its positive performance, the Sydney market may become a victim of its own success. Rising prices are likely to cause buyer interest to taper off in the inner suburbs and push buyers out of the market, according to Domain Group senior economist Andrew Wilson. As a result, Dr Wilson predicts growth will begin to wind back in 2014/2015 to around five to seven per cent.

The Domain Group forecast predicts budget-friendly outer western suburbs may see growth of eight per cent while blue chip inner areas are likely to languish at five per cent. The upper north, inner west and south are tipped to hit seven per cent while the northern beaches are predicted to see six per cent growth.

Favourable market conditions are fuelling a construction boom across the city. In Parramatta, the New South Wales government is pushing for the construction of 6,000 new apartments over coming years over a 146 hectare site. The development will permanently change the Parramatta skyline, with building up to 53 stories under consideration.

Overall, BIS Shrapnel estimates that 5,800 apartments are currently in the pipeline in the Sydney area and 11,500 more will be released over the next three years. With buyer and tenant demand expected to outstrip supply, the firm warns the apartment sector may face a downturn in the 2016/2017 period.

However, according to BIS Shrapnel, this oversupply is likely to be quickly absorbed and by the end of the decade, the apartment market is expected to pick up speed again.

Fast 5 hotspots






Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
State of Markets - NSW November 2014
SPI logo