The suburbs where house prices are up more than 5pc
House prices have jumped by more than 5 per cent in one out of nine Sydney suburbs over the past three months, largely defying the recent slowdown in the market, data from CoreLogic shows.
Suburbs in Sydney’s inner west and inner south-west dominated the top-performing house markets in the city as buyers sought out properties offering good value for money and those with development potential, according to Eliza Owen, CoreLogic head of research.
House prices in some inner west and inner south-west suburbs jumped 10 per cent in the past three months, according to CoreLogic.
“The best performing areas right now are those that have the advantage of relatively large blocks but also proximity to the CBD,” she said.
“Most of these suburbs are primed for higher density developments, so potentially there’s some opportunistic house purchases, where people are seeing the value in increasing the density of those areas.
“Some of the inner south-west markets are relatively close to the CBD but maybe historically, they’ve been a bit overlooked. I think these areas represent relatively good value for what they are and where they are.”
Sydney’s strongly performing suburbs stand out amid signs that some of the heat is coming out of this year’s surprise recovery in the two biggest markets. Home values in Sydney lifted by just 0.3 per cent over November, the smallest monthly increase since February. In Melbourne, home values slipped by 0.1 per cent in November, their first monthly decline since hitting the trough earlier this year.
Narwee in Sydney’s inner south-west racked up the largest quarterly growth of 9.6 per cent, while Lugarno notched up 8.6 per cent over the past three months to November.
Other inner south-west suburbs Beverly Hills, Peakhurst Heights, Hurstville and Kogarah Bay also outperformed, with house prices climbing by 8.3 per cent, 8.1 per cent, 7.5 per cent and 7.4 per cent respectively.
Meanwhile, house prices jumped by 8.4 per cent in Abbotsford in the inner west, followed by 7.8 per cent in Lewisham, and 7.7 per cent in Russell Lea.
“I think a lot of families are now looking to buy in areas that they may have discounted 12 months ago, such as the inner south and pockets of inner south-west,” said Thomas McGlynn, chief executive of BresicWhitney.
“You can still buy a family home there for a lot cheaper in comparison to what you would pay in areas like the eastern suburbs or lower north shore.”
Rich Harvey, chief executive of buyer’s agency Propertybuyer, said the inner west and inner south-west would likely continue to outperform despite the broader slowdown in the Sydney market.
“These suburbs have always been highly attractive for investors due to their consistently solid performance, while owner occupiers like them for their lifestyle, train lines and the more affordable price points,” he said.
Across Melbourne, only 1.6 per cent of all suburbs posted at least 5 per cent house price growth over the past three months, reflecting the broader weakness in the city.
Those suburbs include Bittern, Tyabb, Somerville, Baxter, Tootgarook and Crib Point where prices rose between 6.9 per cent and 5.2 per cent.
In Brisbane and Adelaide, house prices in more than a quarter of all suburbs lifted by more than 5 per cent and nearly seven out of 10 in Perth. Across the combined capitals, one in five suburbs gained more than 5 per cent in three months.
Goodwood in Adelaide Central and Hills district was the country’s best performing suburb over the past three months, with house prices surging by 12.4 per cent, followed by Parkside with 12.2 per cent gain.
At the other end of the spectrum, house price growth continued to decelerate and even decline in some of the housing market’s bellwether areas such as Sydney’s north shore and northern beaches.
Castle Cove led the biggest decline in the city, with house prices tumbling by 6.2 per cent, followed by North Willoughby, East Lindfield and Gordon with a 4 per cent drop each.
In Melbourne, house prices in Hawthorn East slumped by 5 per cent in the past three months, Brighton fell by 4 per cent and Caulfield and Caulfield North by 3 per cent.
House prices in one out of eight Sydney suburbs fell in the past three months, while nearly a quarter declined across Melbourne.
In Brisbane, only 1.3 per cent of all suburbs posted a drop in house values over the past three months, while 3.1 per cent in Adelaide declined. In Perth, all suburbs rose in values, reflecting the 5.5 per cent growth notched up in the past three months.
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