Top growth suburbs: where house prices are tipped to rise by up to $219k this year
House prices in pockets of the northern beaches, Sutherland Shire and eastern suburbs will balloon by more than $70,000 this year as Sydney braces for another property boom.
New research revealed suburbs in these regions had the biggest imbalance between supply and demand and would get the fastest house price growth of any Sydney suburbs this year.
It comes as Commonwealth Bank’s monthly Household Spending Intentions Series released Tuesday revealed demand for housing hit a record high in December.
The spike in demand coincided with a 30 per cent annual drop in listings, which left Sydney with fewer homes available for sale than in Brisbane, despite being double the size of the Queensland capital.
SuburbGrowth.com.au analyst Jeremy Sheppard said this distortion in supply and demand was most apparent in suburbs near the coast because they offered a coveted lifestyle but had the fewest listings. This dynamic would push prices up by six figure margins, Mr Sheppard said.
SuburbGrowth.com.au modelling showed house prices in the suburb of Davidson on the northern beaches would rise $103,000 for the year, while prices in nearby Collaroy Plateau would increase an average $107,000.
Allambie Heights house prices were forecast to grow an average $98,000 and prices in neighbouring suburbs Narraweena and Beacon Hill by about $90,000.
The modelling was based on auction clearance rates, online search activity, listing volumes, “market cycle timing” and a range of other indicators of demand and supply.
Local agent Garry Greco of Clarke and Humel said these northern beaches pockets were getting more popular because they were cheaper alternatives to areas such as Curl Curl and Freshwater.
“The prices are about $1.4 million to $1.5 million but that’s considered entry level on the northern beaches,” Mr Greco said. “Most of the buyers are families. They want big blocks but there is an overwhelming shortage of (listings).”
Mr Sheppard said there was a similar trend in the inland suburbs of the Sutherland Shire – buyers were seeking homes in areas where they could get more bang for their buck.
Prices in the suburb of Bangor, one of the cheapest areas in the region, were forecast to grow $76,000.
There would be a similar price bump ($73,000) in neighbouring suburb Woronora Heights, while further south in Heathcote, price rises were expected to be $60,000 for the year.
In the eastern suburbs, Bronte would record a price surge of about $219,000, pulling the local median house price past $3 million.
Narraweena residents Claudia and Shawn Jacobs, who are taking their renovated home on Bullara Crescent to auction February 15, said they weren’t surprised the area was getting more popular.
Ms Jacobs said, “It’s really green, really quiet, great for families but there’s only three other houses besides ours up for sale.”
The couple’s Hamptons beach style home was extensivley renovated and includes a sunny north terrace and rear courtyard on a 866sqm block.
TOP GROWTH SUBURBS (by price increase)
Bangor 7.5% ($76,000)
Heathcote 7.1% ($60,000)
Davidson 7.1% ($103,000)
Allambie Heights 7% ($98,000)
Bronte 7% ($219,000)
Collaroy Plateau 7% ($107,000)
Paddington 6.8% ($145,000)
Narraweena 6.8% ($93,000)
Beacon Hill 6.8% ($88,000)
North Epping 6.8% $85,000
Woronora Heights 6.8% ($73,000)
Abbotsbury 6.8% ($53,000)