This article is from the Australian Property Journal archive
THE outer suburbs of Sydney have recorded the strongest growth in sales activity, according to new research.
According to PRDnationwide, four out of five suburbs, which registered a 80% rise in the volume of house sales, were located within between 40km and 80km to the north of the Sydney CBD.
And Watanobbi, 70km north of Sydney, topped the list recording a whopping 105% growth in the number of house sales between 2008 (43 sales) and 2009 (88 sales). The top five most popular suburbs represented 4.3% of all sales in Sydney.
PRDnationwide managing director Jim Midgley said this is because it is an affordable suburb registering a median house price of $277,500 and is also serviced by rail and highway which has helped drive increased demand in this area.
Midgley said another contributing factor to the steady growth in these regions is the general affordability of housing variations in most locations with a variety of housing options to suit all tastes and budgets.
Research analyst Josh Brown said pointed out that of the five most active suburbs, three have a median price $420,500 or less.
“On the whole, sales activity in the Sydney SD has increased 12% from 45,042 settled transactions in 2008 to 50,601 during 2009.
“This affordability in housing has been a contributing factor to the demand in these areas, attracting first home buyers and those investors seeking future price growth,” Brown added.
In second place was Cabramatta West, which recorded an impressive 90% jump in sales from 31 in 2008 to 59 in 2009. The median house price is now sitting at $376,000.
Blacktown was the top individual performer with 533 house transactions for the 12 month period. This represents a 22% increase in transactions for Blacktown from 2008 where 437 sales were recorded.
Castle Hill has the highest median house price of the top five most active suburbs in the Sydney SD at $713,000.
“Interestingly, Castle Hill was ranked second for the top five suburbs – highlighting that to some extent price does not always have an inverse relationship to sales activity.
“Castle Hill has instead drawn its demand because it is a well serviced suburb with a high degree of amenity located within close proximity to the Sydney CDB (just over 20km direct),”
Brown said it was important to note that four of the most active suburbs are located north west of the Sydney CBD between 22km and 32km direct.
“Demand in these areas is underpinned by good rental growth, affordable housing options and easy access to major road corridors and railway lines,” he concluded.
Australian Property Journal
