Where is Sydney`s next wave of rising property prices? Those who want to take this express train should choose the southern region this winter.
Some parts of southern Sydney have become the best coordinates for investing in real estate, with the highest rental returns and the prospect of soaring value, a new report shows.
These places have the least to worry about renting out because of tight rental supplies, strong demand and an infinitely low vacancy rate.
The study by Location Score, a research group, also shows that the urban areas around Parramatta and Blacktown are now the places with the highest risk of buying and investing in real estate.
The oversupply of apartments puts long-term downward pressure on rents and prices and increases the risk that some homebuyers have mortgages that exceed the value of their homes.
The study looked at eight key indicators of the new state property market, including the number of properties for sale, the number of buyers, the auction liquidation rate and previous price increases.
According to these indicators, the southern part of Sydney, including Grays Point, Oatley and Kingsford, and Bronte in the south-east are rated the best places to invest in Sydney.
Location Score analyst Jeremy. Shepard (Jeremy Sheppard) said the rise in demand indicates strong price growth in these regions.
Prices are falling in much of Sydney, with overall prices falling more than 4 percent since July last year, according to the latest CoreLogic home price index released yesterday.
Meanwhile, demand has fallen across the city since last year, with buyers of apartments down 23.3 percent and independent home buyers 16.9 percent.
A prominent feature of places such as, Grays Point, Kingsford and Oatley, Shepard says, is that the number of people looking for homes far exceeds supply, which means buyers will have to raise prices to get the houses they want. This has also pushed up housing prices in these areas.
Kuser (Cameron Kusher), an analyst at CoreLogic, said buyers in much of Sydney had no sense of urgency.
"buyers have so many houses to choose from, so they don`t have to worry," he said. "the seller needs to adjust the price."
Cornisbee (Nerida Conisbee), chief economist at Realestate.com.au, said a number of new apartments had been launched in some urban areas, including those around Parramatta, where housing and rents were likely to fall over time and record-breaking.
`it `s good news for buyers and tenants who want to get a good price, `she said.` but it`s not good news for those who are looking for an investment and want a huge return, `she said.
McKay (Cassie Mackie) said she decided to buy a new apartment in the The Burcham development area next to Kingsford because she saw another wave of price increases.
"the whole area is changing," she said. "there are good living facilities and close proximity to the city centre. There will be more room for growth in the future. "
Best investment in urban: Grays Point (,), Oatley (,), Bronte (,), Kingsford (,), Annandale ()
The most risky investment in the city is: Rosehill (apartment,), Werrington (,), Beecroft (apartment,), Oxley Park (,), Ermington (apartment)
