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The Top 18 Suburbs to Buy Sydney Units

PR Newswire

Broadbeach Waters, Qld., Aug. 12, 2021 /Medianet/ --

BuyersBuyers

12 August 2021

 

The Top 18 Suburbs to Buy Sydney Units

 

Bargains in Sydney

 

The ratio of house prices to units in Australia is currently at a record high.

Pete Wargent, co-founder of national property buyer’s agency network BuyersBuyers.com.au said “there is a clear distinction between high and low supply areas.”

“Following the apartment construction boom from around 2012 - intended to fill the hole in the economy left behind by the resources construction boom - all three of Australia’s most populous capital cities struggled to absorb record volumes of new units, especially in the inner cities of Brisbane and Melbourne.” Mr Wargent said.

Doron Peleg, CEO of RiskWise Property Research commented that “some markets where the supply of newly-built units, including at suburbs such as Epping, Olympic Park, and a number of suburbs in the inner south and close to the Airport at Mascot, have seen unit prices decline.”

“The new unit sector in Sydney has also seen confidence damaged somewhat by some high-profile construction defects, which led to problems for owners” Mr Peleg said.

Since the beginning of the pandemic, there has been a notable shift in demand towards regional markets, and away from high-density developments, pushing the price of detached housing significantly higher.

“However, in the most supply-constrained locations in Sydney, the market has been most robust. The city has become a mature global capital city, where apartment dwelling has become normalised for professionals wanting to live near the city and the water, Mr Wargent of BuyersBuyers.com.au said.

Mr Wargent added that “in popular and more established locations, the ratio of detached house prices to units has been a useful predictor of price movements, as the ratio tends to revert over time as affordability constraints bite for the most family-appropriate housing.”

Up until the first quarter 2021, the price index for attached dwellings in Sydney remained notably below where it was in 2017.

Figure 1 – Sydney residential property price indexes

This holds true in spite on the standard variable mortgage rate in Australia falling by around 110 basis points since July 2019.

Figure 2 – Housing lending rates

Pete Wargent of BuyersBuyers.com.au said that “mortgage serviceability ratios are currently exceptionally favourable thanks to the decline in mortgage rates, and as such we can expect to see unit prices in the supply-constrained markets of Sydney appreciating over the coming three years, with mortgage rates expected to stay very cheap until at least 2024”.

Figure 3 – Household interest serviceability ratios

Mr Wargent said “Sydney unit markets we expect to see performing strongly include those in the eastern suburbs, in the $1 million to $1.2 million price range, such as Vaucluse, and Bellevue Hill. There are also some sub-$800,000 selections in the inner west, including Strathfield and Summer Hill”.

“And then thirdly, to the north of the harbour bridge, there are a range of suburbs on the north shore and in the northern beaches, which look attractive from a unit to house price ratio, including Mosman, Cremorne, and other premium locations. Median unit prices here are also in the $1 million to $1.2 million price bracket, with a high land to asset ratio available on boutique unit block purchases” Mr Wargent said.

 

Figure 4 – Top 18 Sydney suburbs to buy units

 

Suburb

Postcode

Median unit price

Median house price

Unit to house price ratio

Centennial Park

2021

$851,190

$6,173,138

14%

Vaucluse

2030

$1,168,518

$7,168,101

16%

Darling Point

2027

$1,677,120

$9,051,670

18%

Bellevue Hill

2023

$1,367,845

$7,188,375

19%

Double Bay

2028

$1,468,691

$5,539,003

27%

Strathfield

2135

$692,835

$2,918,446

24%

Summer Hill

2130

$787,314

$2,070,893

38%

Croydon

2132

$761,830

$1,991,609

38%

Mosman

2088

$1,175,420

$5,091,737

23%

Greenwich

2065

$927,300

$3,295,565

28%

Cremorne

2090

$1,152,206

$3,862,186

30%

Roseville

2069

$923,805

$3,068,079

30%

Gordon

2072

$923,180

$3,055,622

30%

Manly Vale

2093

$917,830

$2,580,403

36%

Narrabeen

2101

$1,089,439

$3,040,190

36%

Freshwater

2096

$1,055,112

$2,887,016

37%

Collaroy

2097

$1,027,415

$2,699,295

38%

Queenscliff

2096

$1,195,931

$3,056,731

39%

 

 

“In particular, boutique developments without shared facilities such as lifts and pools are likely to outperform, due to strong demand by downsizers and well-off professionals who seek low-maintenance and very comfortable dwellings. The high land value content in these location and unit blocks should drive capital growth over time” Mr Wargent said.

ENDS

For all media enquiries, contact BuyersBuyers.com.au Media Manager Alison Sollory alison.sollory@buyersbuyers.com.au

 

 

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