Australia’s most popular suburbs: Newtown and Collaroy top house and unit buyer preferences
The regions together accounted for six of the nation’s 10 most competitive suburbs to buy property over the past three months, measured by the extent demand outweighed supply.
The increased competition put the squeeze on buyers, forcing them to increase their price offers to beat out rival home seekers.
The inner west median property price surged 16 per cent over the past year, while on the northern beaches the increase was 13 per cent, representing rises of more than $100,000 in what were already some of the country’s most expensive markets.
Inner west hub Newtown was the nation’s most in demand suburb to buy a house, while northern beaches enclave Collaroy was the top draw for unit buyers.
Listings in these areas were down more than a quarter from last year while the number of buyers actively for looking homes tripled, according to the realestate.com.au data.
The buyer surge followed three interest rate cuts late last year, with the Reserve Bank of Australia announcing another cash rate cut earlier this week.
Other increasingly popular suburbs – and where buyers were scrambling for a depleted pool of properties – were Stanmore, Annandale and Lilyfield in the inner west and Beacon Hill and North Narrabeen on the northern beaches.
Realestate.com.au director of research Cameron Kusher said Sydney buyers had a clear preference for the inner west and northern beaches.
“The rise in popularity of these suburbs mirrors some of the strong price growth being recorded,” Mr Kusher said.
“We’re seeing millions more buyers on realestate.com.au, but with a lack of available properties on the market, competition is fierce.”
Economist Nerida Conisbee said the recovery in the housing market was still relatively recent and past growth cycles in the housing market suggested buyers gravitated to the suburbs with the easiest access to the CBD first, along with coastal suburbs.
“The Newtown market is going insane,” Ms Conisbee said. “There is enormous activity … on the northern beaches there is a real shortage of family-friendly stock, especially houses, and the area is always popular.”
Newtown resident Natalie Hanuman, who is selling her home with husband Domenic, said she wasn’t surprised prices were surging. “Since the lockout laws it’s the new centre of Sydney with the best cafes and restaurants,” she said.
The couple received considerable buyer interest in their two-bedroom unit at 161 Bedford St in only a short-time, with 46 groups through two open homes. “People are even coming during their lunchbreaks,” Mr Hanuman said.
McGrath-Newtown agent Adrian Tsavalas is taking their home to auction March 21 and said buyers in the area were scrambling to find homes before prices rose further. “There is a major fear of missing out,” he said.