Key takeaways
Certain suburbs in Sydney and Melbourne have experienced significant increases in property prices, with some exceeding $240,000 over just three months, indicating a strong housing market recovery trend for 2024.
Factors such as improved buyer sentiment, changing interest rate expectations, and anticipated real income increases contribute to the resurgence in property markets. However, economic challenges like decreasing household savings and potential rises in unemployment could impact the sustainability of this growth.
While high-growth suburbs may seem attractive, it’s crucial to prioritize investment-grade properties in the right areas rather than chasing short-term hotspots. Having a strategic property plan tailored to individual goals and circumstances is essential for navigating the market effectively and making informed investment decisions.
There’s a striking surge in property prices in select suburbs of Sydney and Melbourne, with some increases exceeding $240,000 over the short span of three months, recent data from CoreLogic reveals.
This upward trend suggests a significant turning point, indicating a sustained housing market recovery in 2024.
Sydney
In Sydney, the suburb of Longueville stands out, with house prices escalating by $242,189 within just three months.
Eliza Owen from CoreLogic interprets this as a clear sign of burgeoning growth in Sydney’s premium property segments, with implications for the broader market.
Beyond Longueville, other areas in Sydney have shown remarkable growth.
The lower north shore, Central Coast, and inner south-west regions are exemplary, registering price hikes considerably surpassing the city’s average.
Notably, Longueville’s median house price increased by 4.8% to $5.3 million, reflecting a robust demand from wealthy upsizers seeking premium living spaces.
Melbourne
Melbourne’s inner-city suburbs of Carlton North, Abbotsford, and Clifton Hill, along with coastal areas like Sorrento and Portsea, have seen house prices climb by at least 2.8%.
This contrasts sharply with the overall city’s downturn during the same period.
Additionally, areas such as North Melbourne and Carlton, previously underperforming, have shown a strong recovery, particularly in the unit market.
Inner-city units are increasingly sought after, particularly among first-home buyers and city dwellers.
The attraction lies in the value these units present, especially given their relatively stable prices in recent years.
Brisbane
Brisbane’s inner suburb, Kalinga, is also witnessing remarkable growth.
Fueled by demand from interstate buyers, particularly from Sydney and Melbourne, Kalinga’s property market has soared.
Its median house price saw a 10.3% increase, translating to an additional $179,211 in just three months.
This surge reflects the suburb’s appeal, characterized by its larger plots and traditional Queenslander homes.
Underlying Market Drivers
The resurgence in these property markets can be attributed to several factors.
Improved buyer sentiment, a shift in expectations around interest rates, and anticipated increases in real incomes are significant contributors.
However, economic headwinds such as decreasing household savings and a potential rise in unemployment pose challenges to the durability of this market upswing.
A final note for investors
As always, these “short term” high growth suburbs aren’t necessarily the suburbs I would recommend investing in.
That’s because when it comes to property investment, it’s most important to look for an investment-grade property in the ‘right area’ rather than chasing ‘top hotspot’ or growth areas.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
You see…property investing is a process, not an event.
Things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
The fact is, the property you will eventually buy will be the result of a sequence of questions you will need to ask and answer and a series of decisions you’ll need to make before you even start looking at locations.
Long before we talk about a property or the right location with our clients at Metropole, we look at factors including their age, their timeframes, and the desired end results in other words, what do they really want the properties to do – are they looking for cash flow, capital growth, or a combination of both.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.
