Despite COVID-19, the Sydney property is strongly forging ahead, however, there are still irresistible pockets of affordable houses that are around 70 per cent of the median price for the capital city, according to Pete Wargent, co-founder of BuyersBuyers.com.au.
“With first homebuyer incentives now in play we expect affordable suburbs to be sharply in focus” Mr Wargent said.
RiskWise Property Research has undertaken an in-depth analysis into the housing market identifying the Top 10 most affordable suburbs in NSW.
RiskWise CEO Doron Peleg said the analysis clearly showed that houses, not units, represented solid buying opportunities for those with long-term strategies and this was reflected in the latest Westpac Consumer House Price Expectations Index which saw a surge of 21.7 per cent in September after tumbling 51 per cent in April.
Mr Peleg said the Sydney property market, in particular, had been on the improve with preliminary auction clearance rates above the 70 per cent mark, similar to those levels of 12 months ago and showing the same sharp growth patterns following the election results of 2018.
“But there are still areas where bargains can be had and if you have a long-term strategy you can expect solid capital growth over the next few years,” he said.
“There are many opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer.
“In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas was cheaper than paying rent on one.
The Central Coast region, Illawarra, and Sydney’s Outer West areas, including the Blue Mountains, have all made it into the table with houses coming in between $700,000 and $800,000 compared to Greater Sydney’s median of $1.01 million.
For example, Horningsea Park in Sydney – South West has a median price just under $800,000 and solid price growth of 20.8 per cent in five years, particularly considering the recent volatility in the Sydney market, with a distance of only 35km from the city centre.
In fact, both the outer western and southern suburbs of Sydney and Melbourne offer more affordable properties with relatively good access to the CBD and this is a key driver for homebuyers.
Meanwhile, the increasingly popular Central Coast suburb of Bateau Bay has a median price of $728,000 and basked in 50 per cent price growth in the last five years.
Mr Wargent of BuyersBuyers.com.au said that the region is a drawcard to homebuyers seeking lifestyle and as more people can work remotely is gaining even more of a reputation as having good buying potential.
However, Mr Wargent stressed while this is the case for houses in these areas, units continued to carry a materially high level of risk.
Please Note: This list is based on suburbs that are around 70% of the medium price and suburbs with at least 1000 houses in the existing stock. It should be noted that the lower end of the market presents different types of risks.