It was a mixed bag of results for New South Wales property in 2017. Prices continued their unprecedented run through the March quarter and then the overall market performance splintered across the Sydney region with some areas continuing to do well, while other areas saw a decline in value.
Overall the median home price for the Sydney region is expected to finish the year at around 5 per cent higher from what it was this time last year, however most of that growth was recorded in the March quarter.
After a five-year dream run, prices peaked in July. Then the market went in different directions with the north and far west of Sydney continuing to perform, while prices in Paramatta, the northwest and inner west began to decline. The Sutherland Shire and the city’s east held their gains with steady activity.
The areas that were hardest hit with falling values were also the areas with the most new apartment projects in the pipeline, whereas the areas with low levels of building enjoyed the largest price spikes.
The Best Performances In 2017
McMahons Point recorded the fastest growing price across Australia for the year, up 45 per cent to $3.98 million and their unit price increased by 45.6 per cent to $1.255 million. Nearby suburbs also did well. St Leonards for example was up around 35 per cent.
In Sydney’s west, Kemps Creek was up 34.6 per cent thanks mostly to its close proximity to Badgerys Creek Airport with other suburbs close by also recording strong gains.
Biggest Drops in 2017
North Ryde saw the biggest drop in 2017 with the median unit price down 16.8 per cent. Unit prices in Rydalmere and Ermington also dropped as more units are being constructed in and around these areas.
Some of the impact on unit prices was from weakening investor demand, as bank restrictions on interest only loans started to have an effect.
What does the future hold for 2018?
There are still multiple property investing opportunities across NSW for 2018, but it will depend on your overall plan and property investing goals. It really is a case by case, property by property – and having the right finance in place – process at the moment. So if you need some help navigating the NSW property investing landscape, be sure to give us a call, to give yourself every chance of success in 2018.
