When it comes to the real estate market, Sydney has enjoyed steady and unobstructed growth over the last decade. However, there were periods of decline from 2018 until 2019 due to some various factors, such as:
Expensive housing
Credit restrictions
Increasing bank funding costs
Less foreign investment
Oversupply of units in some suburbs
In the latter half of 2019, Sydney was driving the real estate market with properties increasing by 3.6 per cent in September. As a result, Sydney is now seeing home price gains that are driving many investors to seek portfolio opportunities and attract rental demands and value growth because their confidence grows back into the market.
Eventually, it raises the question: “Where are the up-and-coming suburbs in Sydney, and which criteria are needed to locate them?” If you take into consideration the major lifestyle factor of career, community, and connection, it is wise to check out those suburbs within 10km in the city area that are close to transport services, business hubs, and parks and culture.
Here are the top three of investment-grade Sydney suburbs you need to look at this 2020:
Kensington
Distance from CBD: 6km South East
Walk Score: 81 – Very Walkable
Median Household Income: $1498 (weekly)
Total population: 12,776
Located southeast of Sydney’s CBD, Kensington’s proximity to the University of New South Wales, Centennial Park, and Sydney’s CBD make this suburb a grand winner for investors and buyers looking to live near the centre and Sydney’s eastern beaches. With the much-awaited light rail network opening soon, interests in this area are expected to grow exponentially. Ultimately, Kensington is expected to become a “gateway destination” that will surely see an increase in population.
Summer Hill
Distance from CBD: 7km West
Walk Score: 77 – Very Walkable
Median Household Income: $1570 (weekly)
Total population: 6586
Once viewed as an industrial node, this suburb is the inner west’s new hidden gem. This residential suburb that is located west of Sydney’s CBD with Ashfield, Lewisham, and Haberfield suburbs surrounding it, has a mixture of Federation-era homes.
Summer Hill also boasts medium-density apartment blocks located near the railway station and more than one hundred properties being heritage listed. There are character and soul in this charming village environment that has high-standard schools, supermarkets, fruit shops, restaurants, and cafe within walking distance from the railway station.
Newtown
Distance from CBD: 4km South-West
Walk Score: 95 – Walkers Paradise
Median Household Income: $1753 (weekly)
Total population: 14,148
Located four kilometres southwest of Sydney’s CBD, Newtown a diverse, bohemian community that is always bustled with activities day and night. Eateries and hip bars with multicultural menu cater to students of the University of Sydney, locals, and tourists alike. Additionally, The Enmore Theatre hosts live music and comedy show to entertain everyone in the neighbourhood.
There are thrift stores and indie shops located at King Street for shoppers to enjoy. A mural of Martin Luther King and restored Victorian buildings and street art also round up the scene, making this residential suburb perfect for art lovers.
Final words
When looking at property valuations, it is important to remember that location accounts for about 80 per cent of the value of the property and 20 per cent from the property itself. This means that with the appropriate property selection and location assistance, you can find a valuable investment that truly outperforms the averages in growth. If you need further help with investment property valuation in Sydney, contact Valstar Valuations today to see what they can do for you.