The NSW property market continues to defy the odds. Despite the increase in interest rates, the demand for properties remains remarkably high while the homes available are quite limited.
It’s leading to a situation where we see a surge of eager buyers at open homes, creating a lot of buyer activity in the market, says Simon Cohen, Property Ambassador for H&R Block Australia.
He says the auction clearance rates have been fluctuating between 65-80% lately, which is keeping things quite dynamic.
“As we move towards spring, I’m really curious to see how the stock levels will shape up and how it will impact the overall market sentiment, as well as see if any interest rate pressure does start to affect some homeowners,” Cowell says.
As for what will happen with NSW property prices, like with any market, it’s always a bit of a guessing game. That said, based on current trends and market behaviour, Cowell does have some theories.
“If we see a substantial increase in available properties, it’s likely that prices might soften slightly,” he says.
“However, the Sydney property market has shown its resilience time and again, especially during challenging times like the GFC and Covid. So, I wouldn’t expect any dramatic crashes or major price drops. I believe the market will stabilise, and property prices will maintain their relatively high levels.”
If you are considering buying an investment property in NSW and specifically within Sydney anytime soon, ahead, Cowell shares three suburbs he thinks are worth considering. These, he says, are some of the best places to buy investment property in NSW.
Surry Hills has a lot going for it, making it an attractive investment option, he says.
“Its close proximity to the CBD ensures a highly desirable location for both residents and tenants,” he says. “The vibrant lifestyle it offers is a big draw, and the excellent public transport connections make commuting a breeze.”
Plus, with the consistently high demand for rentals in this area, investors are likely to find this suburb a rewarding choice.
“Balmain exudes a distinct charm that attracts both residents and investors,” Cowell says.
“Being close to the city and having easy access to essential amenities makes it incredibly appealing. The village atmosphere adds to its allure, making it a sought-after location for young families and couples looking for a lively and welcoming community.”
Finally, as housing prices soar in the Eastern Suburbs, the Upper North Shore, particularly Lindfield/Killara, becomes a compelling option.
“Here, buyers can get more value for their money with larger land sizes and access to excellent private schools,” he says. “The approximately 30-minute commute to the CBD adds to its appeal, making it a viable choice for families seeking a balance between suburban tranquillity and city accessibility.”
There you have it, some of the best places to buy investment property in NSW.