However, real estate in the capital city has had its ups and downs in recent months. Starting off strongly and peaking in March 2022 the ABS had the average Sydney dwelling price at just over $1.2 million. Unfortunately, since then, CoreLogic’s Daily Home Value Index has revealed a 13% peak-to-trough decline in overall Sydney median price.
Whilst a downturn in the city’s property prices might be in the news at the moment, over the long term, Sydney property has shown a remarkable propensity for capital growth.
For long-term investors, what happened in the Sydney housing market between 2011 and 2021 could only be seen as a huge success story. In just 10 years, property prices more than doubled, increasing 146.4 per cent according to CoreLogic data, clearly a sign of strong long term investment potential in Australia and particularly Sydney.
And while property prices may now be experiencing a short-term correction, several Sydney hotspots are defying the downward trend and providing excellent options for investment.
The following 5 Sydney suburbs to watch for 2023 have been hand-picked using insights gleaned from their performance in 2022 based on PropTrack data.
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Moorebank is a suburb well-established in the Sydney area, located only 35 minutes away from the CBD. With interest rates remaining at record lows, Moorebank is an attractive option for buyers looking to make an investment due to its convenience and lifestyle factors.
Whilst the median price has decreased slightly since its peak in May 2022, it sits at $1,220,000 with extremely low supply levels and a low vacancy rate of 1.31%. Adding to that is its 10-year compounding growth rate of 9.35% p.a., making it an ideal choice for property investors. Furthermore, the community provides great amenities to its residents such as the Moorebank Shopping Centre.
Botany has emerged as a hot spot of Sydney’s current property market, boasting a median house price of $1,885,000 and gaining 7.1% growth over the past 12 months. This dynamic area offers many attractions for growing families due to its ample buying opportunities with decent-sized blocks of land as well as amenities such as Sir Joseph Banks Park with its array of walking tracks, bushlands, gardens, ovals and sports fields.
Values of homes in the inner-city suburb of Rozelle are resisting the downturn in the Sydney market, with the median house price having increased by 3.2% over the past 12 months. Rozelle is an easy 10-minute drive from the heart of Sydney and its close proximity to Balmain and Leichhardt provides residents with access to a variety of entertainment options as well as cafes, restaurants, and boutique stores. With a rental yield of 3.0%, Rozelle is an attractive option for investors and its recent growth has further solidified its status as one of Sydney’s most sought-after suburbs.
Sydney’s western suburb of Parramatta presents great potential for those looking to enter the Sydney housing market as investors. With the 2022 annual median unit price growing at 1.7% and 4.7% for houses, the area shows great resilience to market forces impacting the wider Sydney market.
Parramatta’s inner city is undergoing a period of revitalisation, with an influx of private and public investment. Most notably, the Powerhouse Parramatta, a world-class science and engineering museum, which will open in 2023, adding further value to the area’s already impressive infrastructure.
The suburb is already home to a number of prestigious educational institutions and major employers such as Westfield Parramatta, marking it out as a desirable place to live and work.
It is exciting to consider the potential for growth in south-west Sydney in 2023, especially as Badgery’s Creek Airport gets ready to come online in 2026. Nearby Liverpool has already seen strong gains in property prices, with houses and units in the area jumping 21.2% and 5.1%, in 2022 respectively. Yet despite this increase, housing in Liverpool still remains much more affordable than in inner eastern suburbs such as Surry Hills and Pyrmont. And when you add in the $4.4 billion which the State and Federal governments are investing in the Western Sydney’s Infrastructure Plan, Liverpool looks set to become a highly connected, highly serviced area with excellent investment potential.
In the midst of Sydney’s two-speed property market, there are plenty of excellent opportunities for investors to capitalise on. With some areas growing steady and others beginning a short-term decline. Savvy property investors now have the chance to swoop in and get great deals on properties that were once out of their price range.
With prudent research and knowledge of the local market, investors can take full advantage of the opportunities in this unique Sydney property market. As an investor, it is important to remain aware of any new developments or projects which could affect the value of the properties you are evaluating.
It’s important also to recognise the fact that property, especially residential property in premium locations, moves in cycles. Property investment necessitates a long term approach to achieve long-term wealth generation. At Ironfish, we recognize that property investment can be complicated, requiring the harnessing of years of experience and expertise to devise a successful approach.
That’s why we’re here – to offer our knowledge and expansive network of professionals to help Australians achieve their property investment goals and build solid foundations for their financial future. We’ll be with you from start to finish, helping to make the investment journey an exciting and rewarding one. While there is no perfect time to enter the Sydney investment market, you definitely don’t want to wait until interest rate rises and property prices are on the up.
Before we ever recommend any property to our investor, we ensure the potential investment meets a very particular set of criteria, including rental yield, capital growth, quality construction and design, immediate equity and location.
With equal parts experience and vision, our aim is to make property investing simple, accessible, and profitable for everyone.
If you would like to know more about Sydney property investment, simply download the My City Sydney report to stay up to date with market trends so you can make your next investment with confidence.
Take the first step towards better results. Book your expert consultation today!