Where are the hot suburbs of 2016?
With any investment, the key to making the best gains in real estate is knowing where and when to make your purchases, and getting out in front of your buying competition. As Australia’s property markets are known to fluctuate regularly, picking your spots is not always easy.
There are a lot of factors at play that can impact the property opportunities in a given area, so keeping an awareness of what’s happening in your suburb of interest can be of huge benefit. Even those people who spend their lives studying the real estate industry aren’t always able to see what’s coming, however speaking to a buyer’s agent should be your first port of call when making early inquiries.
In a recent interview with The New Daily, Cohen Handler CEO Ben Handler offered his perspective on which parts of Sydney and Melbourne are worth watching over the new year. Let’s take a look at his suggestions.
It’s true that Sydney has been considered a sellers market for the past few years. According to the Commonwealth Bank-CoreLogic RP Data Home Buyers Index for October 2015, however, while conditions are still leaning in favour of sellers, the market is showing signs of easing for buyers.
Australia’s property markets are known to fluctuate regularly, picking your spots is not always easy.
If we look at the auction clearance rate in Sydney compared to the same time last year, it’s hard to deny that these indications are correct. In the final week of 2015, the number of homes that sold fell to 60.3 per cent of all those that went under the hammer, while the same week in 2014 saw a 74.5 per cent clearance rate. That’s a significant drop, and one of the key factors in the forecasts for 2016.
So, if things are indeed swinging back to the buyer’s favour in Sydney, where might be the best areas to start your property search? According to Mr Handler, the western Sydney suburbs Mount Druitt, Blacktown and St Marys all offer some great investment opportunities, with some modern apartments selling for as low as $300,000.
Melbourne, like Sydney, has been a great place for sellers in recent years; for buyers, not so much. What’s even more alarming, the signs of slowdown which have been observed in the NSW capital don’t seem to be happening on quite the same scale in Victoria, with SQM Research recently claiming that Melbourne will outperform Sydney in 2016.
Conditions for home buyers are certainly tough, but there is a silver lining. If you are in a position where buying an investment property in Melbourne is achievable, you might find yourself the recipient of some of the highest rent prices on record in the city.
According to Domain, the median rental price in Melbourne reached $400 per week for the first time in the December quarter, with houses in particular showing strong growth of 5.3 per cent across the year. As for where in Melbourne you might consider a good bet? Mr Handler recommends having your buyer’s agent investigate Preston, Coburg and South Kingsville.
How can I find out more?
Keeping tabs on hot suburbs can be a chore in just one city, but if you’re looking for the best investment opportunities you might find yourself wanting to stay ahead of the market across multiple states. Fortunately, speaking to a buyer’s agent can take some of that burden away from you.
Cohen Handler has offices in Sydney, Melbourne and Brisbane, all home to experienced property buyer’s agents with detailed information about individual suburbs. Before settling on your next real estate opportunity, make an appointment to speak to one of us, and take advantage of our network of contacts and deep knowledge of the top suburbs.