Sydney's rapidly rising property prices are tipped to slow in 2022, with buyers facing less competition as more homes hit the market.
Most buyers have an area in mind for their next purchase, whether guided by proximity to family, friends or good schools, affordability or the best appreciation potential. But with hundreds of suburbs to choose from it can also help to get a little inspiration from further afield.
From some of Sydney's best-known suburbs to underrated gems, these are the ones expert buyers and sellers have their eyes on for the year ahead.
North
The runaway prices seen on the northern beaches last year have come to an end, according to buyer's agent Peter Kelaher, but the managing director of PK Property is still expecting strong interest in the region, as demand for lifestyle locations – off the back of the rise in remote working – continues.
Mr Kelaher is keeping a close eye on the beachside suburbs stretching from Fairlight to Curl Curl, which he expects could see house prices rise at least another 3 to 5 per cent this year, despite the region's already phenomenal growth – the northern beaches house median was up 46 per cent over the year to September, on Domain figures.
Units in these suburbs would also do well, he predicted, with many priced out of the housing market by the rapid price gains.
“[The] area is just holding its own, and it always does, it's quite a good area to invest in and get into …and I think we now need to be talking about buying in areas that are going to hold themselves in a [market] downturn or stabilisation,” Mr Kelaher said.
Back from the beach, he also had his eye on Elanora Heights, Narraweena and Beacon Hill, where he estimated prices had come back about 5 per cent as more homes hit the market late last year – predominantly in the $2 million to $2.2 million range – enabling better buying for house hunters. However, prices would only pull back so far before fewer homes started hitting the market and prices rose again.
“There's going to be more opportunity [for buyers], particularly for B- and C-grade properties, but A-grade will always be competitive,” he added.
On the north shore, Greenwich and Crows Nest were the respective top picks of BresicWhitney head of sales Thomas McGlynn and Starr Partners chief executive Douglas Driscoll.
While Greenwich was popular with locals, it was often overlooked by out-of-area buyers despite providing many of the same lifestyle opportunities for better value than some of its contemporaries like Hunters Hill and Mosman, Mr McGlynn said.
“I would say [Greenwich is] one to watch, especially because [of the demand for] prestige property and from what I can see at the moment if there is one category that will continue to have good growth it's that,” Mr McGlynn added.
Crows Nest was similarly overlooked, Mr Driscoll said of the suburb he himself has called home for the past couple of years. While often seen “as one of the poorer relations” to other parts of the north shore, it had a more vibrant cafe and dining scene than other pockets and was increasingly attracting young families drawn to the area's comparative affordability.
The metro station under construction and the suburb's proximity to North Sydney, which has undergone a “bit of a renaissance” in recent years, were also key drawcards.
South
Arncliffe, Bexley and Banksia in the city's south are suburbs to watch in 2022, according Michelle May, of Michelle May Buyers Agents, as buyers priced out of the inner west look further afield.
The suburbs are now drawing a younger demographic, as first-home buyers and upsizers look for more affordable alternatives to the inner west that still have good public transport links to the city.
“Inner westies are being pushed further out, as the eastern suburbs buyers are being pushed further into the inner west,” Ms May said.
While all three suburbs had seen good growth over the past year, they still have room for more due to their comparative affordability, Ms May said. Arncliffe, for comparison, recorded a median house price of $1.35 million in the year to September, while nearby Marrickville's median hit $1.7 million.
“If you've got $1.5 million you can still buy a house, which isn't possible in much of the inner west unless you want to live on Parramatta Road,” she said.
The region was also a pick of buyer's agent Lloyd Edge, managing director of Aus Property Professionals, though he is looking to the likes of neighbouring Kogarah and Rockdale – less than 20 minutes from the city by train. They had always been a bit underrated, he said, adding that the hospital and proximity to the beach were also key drawcards.
East
Edge also had the beachside suburbs of Maroubra and Coogee on his radar for 2022. While expensive, with respective house medians of $2.41 million and $3.5 million, he felt that both – but Maroubra in particular – offered better value for money than other waterfront suburbs in the east, and would continue to draw upsizers from neighbouring suburbs.
Nearby Kingsford and Kensington were also likely to be popular, for both upsizers and first-home buyers looking to units with good proximity to the city, beach and parks. The south-east was also seeing increased interest due to the light rail line, he added, and this would likely grow as more people returned to the office.
Closer to the city, Rosebery and Waterloo could represent good buying for those looking for apartments, Ms May said, but warned buyers would need to be selective and do their due diligence checking a building's strata history.
“There may be some good opportunities now there is a lot more supply there. I think they will become more desirable with the new train line station and [nearby] Green Square becoming more of a real suburb as opposed to a ghost town with just high rise.”
West
Stanmore in the inner west was the other top pick for Mr McGlynn, who said it was often overlooked for the likes of neighbouring Annandale – the second most searched suburb in Australia last year.
“It's only on the other side of Parramatta Road from Annandale, you get freestanding homes and semis, all of which have similar or greater proportions than more popular suburbs like Annandale or Balmain,” he said.
While Stanmore has already seen significant price growth – with the median up about 31.7 per cent over the year to September – it still had more to go, Mr McGlynn said, noting the suburb record sat at less than $4.3 million, compared to Annandale's $8.7 million.
Nearby Lewisham, Summer Hill and Dulwich Hill were also ones to watch, according to Mr Edge, but he noted his top picks for investors would be suburbs like Ingleburn and Glenfield in the south-west, as they offered higher rental yields and low vacancy rates.
Meanwhile, Camden, in the city's far south-west, was another top pick for Mr Driscoll. It had been seeing increased interest as more people moved to the outer suburbs in search of more space during the pandemic, and he expected this trend to grow.
The suburb has a rich history, heritage charm and has seen more tasteful development than other pockets of the south-west, where cookie-cutter developments have sprung up over the years, he said. Buyers could also still get a lot of land out there for a decent price.
“The vast majority of Sydney's future growth will be in the south-west… somewhere like Camden at the moment might look like a bit of an outpost, but it won't be in the future.”
**Source: Domain- Kate Burke