5 Sydney suburbs that are expected to outperform the market

The suburbs included in the report were selected by first excluding suburbs that over the previous three months have not met benchmarks and trends revolving around asking prices, days on market, inventory levels and sales volumes.

Suburbs which have met this criteria are then ranked based on the expected growth in asking prices over the next six months.

These exceptional suburbs among Sydney’s 600-plus suburbs have then been divided into five quintiles based on their current median asking price for houses:

• Quintile 1 = Heartland Sydney
• Quintile 2 = Suburban Sydney
• Quintile 3 = Rising Sydney
• Quintile 4 = Professional Sydney
• Quintile 5 = Affluent Sydney

Shore Financial CEO, Theo Chambers, stated that the research for the Shore Financial State of Sydney Report has been indicative of the diverse nature of the current Sydney property market.

“Some suburbs are likely to experience strong price growth in the next six months, some are likely to stagnate and some are likely to go backwards, showing that Sydney is full of submarkets that all have their own cycles,” Chambers stated.

Shore Financial’s most recent findings deviated quite heavily from the brokers’ expectations outlined in their Shore Financial State of Sydney Report released three months ago where they stated that affordable Sydney suburbs would solely experience the strongest price growth in 2024.

Chambers explained that the current interest rate outlook could have a major short-term and medium-term impact on Sydney property prices across the board.

“Depending on how things pan out, an August cash rate increase is possible. Even one rate rise would drain some confidence from the market, which would affect buyer activity and price results,” Chambers said.

Property listings were also cited by Chambers as another variable to watch as Sydney’s currently very low levels of inventory would result in any uprise of housing supply putting downward pressure on demand and impacting local price growth over the next six months.

Currently strong immigration rates were additionally mentioned by Chambers, with any meaningful decline to immigration levels capable of dampening buyer demand.

The CEO further stated that forecasting is “particularly challenging at the moment” in light of the uncertain view on interest rates and changing conditions both on the domestic and international scale.

Nevertheless, Chambers detailed that “global turmoil” may actually be contributing to buyer activity, especially in Sydney’s premium suburbs, as the state’s property has come to be regarded as a “safe haven” investment.

“History suggests that, in any given 10-year period, the Sydney market will experience ups and downs but ultimately have a significantly higher median price at the end of that decade than the start. There’s no reason to expect anything different from the next 10 years,” Chambers stated.

The suburbs likely to outperform the market in the next six months are:

Quintile 1: Heartland Sydney

Suburb: Kingswood

Postcode: 2747

Current median house price: $860,000

Forecast house price growth for next six months: 4 per cent

Quintile 2: Suburban Sydney

Suburb: Parramatta

Postcode: 2150

Current median house price: $1,500,000

Forecast house price growth for next six months: Over 5 per cent

Quintile 3: Rising Sydney

Suburb: Barden Ridge

Postcode: 2234

Current median house price: $1,663,000

Forecast house price growth for next six months: Over 5 per cent

Quintile 4: Professional Sydney

Suburb: Dundas

Postcode: 2117

Current median house price: $1,742,000

Forecast house price growth for next six months: Over 5 per cent

Quintile 5: Affluent Sydney

Suburb: Lane Cove

Postcode: 2066

Current median house price: $3,036,000

Forecast house price growth for next 6 months: Over 5 per cent