SYDNEY house prices will grow about 2 per cent this year, unless you’re lucky enough to live in one of the magnificent seven suburbs in the city’s west.
While much of Sydney will plateau, these areas will see prices soar.
Moody’s Analytics and Core Logic projections show the median home price will grow about 2.2 per cent, but improvements to transport, education and medical facilities will drive prices much higher in key suburbs.
First is Parramatta, where roughly $8 billion in residential and commercial construction projects is under way and billions more is being injected into public infrastructure, including a new University of Western Sydney campus.
McGrath Estate Agents founder John McGrath said prices in Sydney’s “second CBD” are likely to continue rising sharply for the next five years. Prices have already climbed nearly 80 per cent since 2012.
“Parramatta is in serious turbocharge right now. It’s becoming Sydney’s new heart … in terms of public transport, (it’s) being touted as the new Central,” Mr McGrath said.
Plans for a light rail network, the $15 billion WestConnex road project and a proposed high-speed rail line to Badgerys Creek Airport will bring jobs to the area, which will boost demand for local housing and drive up prices, Mr McGrath said.
In nearby Westmead, the $900 million expansion of the local hospital is set to create 7000 new jobs and cement the suburb’s position as the country’s largest medical hub.
Medical workers are already seeking homes in the area, Hotspotting director Terry Ryder said.
“The hospital expansion is pushing up demand, particularly for units,” he said.
He also singled out Rouse Hill, in Sydney’s northwest.
The construction of Sydney Metro Northwest, formerly known as the North West Rail Link, has helped lift the suburb’s median house price by more than $200,000 in the past year.
Mr Ryder said the housing market had performed well in the entire northwest region, but predicted Rouse Hill to be a standout performer in future as it will be the site of a billion-dollar, multifunctional regional centre and other facilities.
PRD Nationwide research shows home prices in Auburn will also increase rapidly as a result of new infrastructure, with more than $500 million in projects committed to the area and a spillover from the Parramatta area.
The housing group’s head of research Dr Asti Mardiasmo also nominated Bexley, Mortdale and Revesby as hot spots.
Prices in these suburbs remained undervalued when compared with the surrounding region and they would be the target for buyers priced out of Sydney’s inner-ring suburbs, she forecast.
LJ Hooker NSW manager Ben Mitchell said one area where you could not pinpoint one suburb but where it would do better than the average was the upper northern beaches. They are hosting a mammoth auction of 25 properties from 12 offices on March 23.
Adrian Simmons and wife Lesley are selling the Church Point home in McCarrs Creek Rd, where they live with their children Isla, 4, and six-month-old Harry, for $1.75 million as part of the event.