Property expert, John McGrath shares his top Sydney metro picks for the best opportunities to buy as well as his top regional picks from the Hinterland to and up and down the New South Wales coast!
By John McGrath
John McGrath’s Top Sydney Metro Picks – Best Buying Opportunities
Houses: Alexandria, Balmain, Bondi, Palm Beach, Woollahra
Apartments: Bronte, Drummoyne, Lilyfield, Mosman, Queenscliff
Regional Markets
There are signs of new confidence but buyers are not competing above what they see as fair value. A significant new trend is city investors looking to regional areas for value and strong yields. Some markets are seeing investor activity for the first time in many months. There are more buyers out there and more sales occurring even in markets hit hardest by the GFC, such as Byron Bay.
The bulk of sales activity is occurring at the lower end under $500,000. We’re seeing occasional bursts of activity in higher price brackets but this is the exception rather than the rule.
Local and city investors are active in areas such as Newcastle, Warners Bay, the Central Coast, the Gold Coast, Port Macquarie and the Blue Mountains. Yields of 6-8% (much higher in mining towns) are now common in Australia’s regional areas and better transport links are enabling city investors to explore more affordable markets relatively close to home.
John McGrath’s Top Regional Picks – Best Buying Opportunities
Bowral (Southern Highlands), Charlestown (Newcastle), Hamilton (Newcastle), Kambah (ACT), Katoomba (Blue Mountains), Lighthouse Beach (Port Macquarie), Palm Beach (Gold Coast), Southport (Gold Coast), Terrigal (Central Coast), Towradgi (Wollongong)
Key points and predictions
Market is inconsistent with buyers holding off on decisions due to concerns about overseas economic factors, lacking business confidence at home and federal political instability
The market under $1M in most metro areas is strong, weaker activity in higher price brackets
Buyer enquiry is up but purchasers are very price sensitive and hesitant to commit Positive and sustained economic change overseas will prompt a 3-5 year recovery
Low interest rates might result in more sales this Winter but won’t push prices up
Affordability has improved significantly – the main benefit of a downturn with vast opportunity available for buyers willing to act today
NSW investors represent 44% of the market, as softer prices and strong yields lure many investors away from shares and into property either directly or through their SMSF
City investors are increasingly looking to regional areas for value and strong yields There are positive signs in blue chip regional markets hit hardest by the GFC
