Sydney has been driving a property market turnaround in the latter half of 2019, and two experts have given their picks on which suburbs will see the biggest growth in 2020.
Australian Bureau of Statistics (ABS) data revealed that Sydney property prices increased 3.6% in the September 2019 quarter, driving national growth to the strongest result since the December 2016 quarter.
The Reserve Bank believes the property market has reached a gentle turning point and Sydney, Australia's biggest property market, is tipped to continue this form into the New Year.
Real estate expert Douglas Driscoll, CEO of real estate group Starr Partners and Adam Rigby, CEO and founder of fixed-fee agency Upside have shared their predictions for Sydney suburbs that will see major growth in 2020.
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Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
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Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) owner-occupied home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Sydney suburbs tipped for growth in 2020:
- Crows Nest
- Oran Park
- Bellevue Hill
- Summer Hill
- Lalor Park
- Green Square
- Badgerys Creek
Kensington's proximity to the CBD, Centennial Park and the University of New South Wales makes it a winner for buyers looking to live near the city and Sydney's eastern beaches, according to Mr Driscoll.
"I believe it will also become a ‘gateway destination’ – a new cruise ship terminal is flagged for Port Botany and, if this goes ahead, I expect the Government to extend the light rail all the way from neighbouring Kingsford to La Perouse," Mr Driscoll said.
"The long-awaited light rail network, set to open this week, will see interest in the area grow exponentially."
Mr Driscoll said 'Crowie' provides people with the dream of living in a suburb with a village-feel, as trendy restaurants and bars are coupled with a family-friendly atmosphere.
"The multi-million-dollar Woolworths refurbishment and the arrival of a rail line in 2024 are other major drawcards that have undoubtedly driven residential interest in the area, especially among young professionals, young families, downsizers and hipsters.
"Sydney’s lockout laws have also provided a boost to Crows Nest night life, which already had the makings of a good entertainment hub."
In Mr Driscoll's recent property market predictions for Sydney, he said the city will soon witness the continued growth of "exurbs", which Oran park is.
"Despite being a relatively new suburb, it has a fairly self-sufficient population with good infrastructure, low housing density and reasonable commute times to the city and is fast developing its own personality."
"Part of Sydney’s emerging Aerotropolis, and just a short distance from the $35 million Gregory Hills Health and Business Centre, transport links – and jobs – won’t be hard to come by."
Only ten minutes from Bondi and closer still to the upmarket Double Bay, Mr Driscoll believes Bellevue Hill property prices will continue to skyrocket as families seek a quieter space in the Eastern suburbs.
"With established blocks, leafy streets, a charming café strip and excellent access to employment, it is becoming – and will continue to become – increasingly gentrified."
"Better yet, the hilltop community also has a comparative absence of traffic – a welcome relief from other parts of Sydney’s east."
Busby's median house price of $557,500 comes in well under the Government's First Home Loan Deposit Scheme cut off of $700,000 for Sydney, which Mr Driscoll said will make it a very attractive option for young professionals and families looking to get a foothold in the property market.
"Close to the M5 motorway and with ample bus services and several schools, Busby has everything first home buyers need to make the area their home."
"Its proximity to Western Sydney University also makes it very attractive for investors."
Summer Hill was previously seen as an industrial hub, but Mr Driscoll said it's now the inner west's hidden gem, as it's rare to find a suburb so close to the city which is synonymous with family living.
"There’s soul and character, and everyone loves the charming village environment it has to offer – good schools, a cool café culture, a supermarket, fruit shop, butcher and restaurants all walking distance from the train station."
"At its heart is The Flour Mill, an old industrial pocket that is being transformed into an amazing new residential community with apartments, shops, cafés and parklands."
Mr Driscoll believes Merrylands has some of the best value for money for freestanding dwellings in Sydney and will soon emerge from the shadow of its neighbour, Parramatta.
"The more the Cumberland Council spends on the Merrylands town centre, the better it will become."
"Should it go ahead, a $292 million master plan to redevelop Merrylands RSL will include more than 400 apartments and over three sleek, high-rise buildings, drawing European-style eateries and trendy alleyways to the area."
According to Mr Driscoll, Pagewood is one of the south-eastern suburbs most overlooked suburbs and is about to go a major transformation as two former industrial sites undergo development.
"With a median house price $220,000-$440,000 cheaper than nearby Matraville and Maroubra, Pagewood is a coveted area for buyers in the market for a unit."
Nestled at the foot of the Blue Mountains, Blaxland provides a genuine country feel while still being close to larger neighbouring suburbs of Penrith and Emu Plains, and Mr Driscoll said it has large homes for a great value price.
"While this area has become part of Sydney’s greater west, large family homes are available for well under $1 million and on large blocks with plenty of greenery."
"Young professionals or couples looking for a better quality of life and wanting to get more for their money should seriously be considering investing here."
First home buyers will flock to Lalor Park according to Mr Driscoll, with its median house price of $611,000 considered very affordable among suburbs within 20-30km of the CBD.
"As the suburb has older homes, they can expect to get a three-bedroom, one-bathroom house on a decent block for about $600,000 to $650,000."
"Its great community feel is also a major catch, drawing crowds to its monthly Community Hub Markets and the Lalor Park Community Gardens hosting frequent picnics and other events."
The Green Square precinct, which encompasses Alexandria, Zetland, Waterloo, Rosebery and Beaconsfield is set to be the focus of a major urban renewal project which Adam Rigby said will transform the industrial heartland into a vibrant community perfect for professionals and young families.
"The City of Sydney has committed $540 million over the next 10 years to create world-class community facilities in the area, including an innovative new library and plaza, an aquatic centre, parks and playgrounds, a childcare centre and a creative hub," Mr Rigby said.
"Infinity by Crown, a commercial and residential development in Zetland designed by architect Koichi Takada, is home to a diverse range of cafes, bars, restaurants and retail outlets."
With the announcement of Western Sydney Airport set to open in 2026, Mr Rigby said Badgerys Creek has become one of Sydney's fastest growing suburbs, which will only continue into 2020.
"The construction of the airport will bring with it new job opportunities as well as local dining and entertainment options."
"Property prices in Badgerys Creek and the surrounding suburbs have seen significant uplift in recent years and will likely continue to grow in line with the area's expansion."
Like the third Hemsworth brother, Brookvale is the lesser-known neighbour to Northern Beaches suburbs like Manly and Dee Why, but Mr Rigby has tipped it to be the new hotspot for buyers seeking a beach-side lifestyle, off the back of council plans to transform the suburb into a residential and commercial hub.
"The council's vision for Brookvale will see more bars, cafes and restaurants in the area, as well as new residential developments."
"Adding to the area's appeal is the B-line bus network connecting residents to the city, the recently opened Northern Beaches Hospital and the planned Beachs Link tunnel, which will connect the Northern Beaches to the Warringah Freeway and south across the harbour through the Western Harbour Tunnel to WestConnex."
Once considered the heartland of outer Western Sydney, Mr Rigby predicts Auburn will have significant growth off the back of a short commute to the city and a range of food and cultural offerings.
"The local restaurants and cafes are a haven for foodies, whiles there's greenery aplenty at the nearby Auburn Botanical Gardens."
"Cumberland Council also has big plans for the area, with the Auburn Residential Strategy outlining a major plan for expansion to accommodate increased residential growth over the next decade."
Slated to become Australia's Silicon Valley, Mr Rigby said Eveleigh is an inner-south suburb to watch, with new developments making it a residential and commercial hub perfect for a range of groups.
"Developments like Mirvac's Axle building (the new Commonwealth Bank headquarters) and Carriageworks, alongside the council's new technology and innovation project, are transforming the area from an industrial precinct to a residential and commercial hub."
"With lots of new residential developments, restaurants, cafes and good public transport in the area, Eveleigh is fast becoming the ideal suburb for young professionals, hipsters and young families."
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
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Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
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*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
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