Add Category![Despite the market softening, suburbs like Penrith remained a sellers' market with low inventory levels and low days on market.](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Despite the market softening, suburbs like Penrith remained a sellers’ market with low inventory levels and low days on market.
Amid rising interest rates and a shrinking amount of houses available to purchase on the market, there are a number of locations expected to grow next year.
Real estate agency Upside Realty has released the ‘State of the Australian Property Market List 2023’ report which looks at the top suburbs set for growth around Australia in 2023.
There are a number of suburbs to watch next year, which are predicted to increase in price by over six per cent.
Botany has been tipped as one of the suburbs set to see a high level of growth in 2023.
Botany topped the list for NSW, with a growth in median house price of $1.885m – 7.1 per cent jump in the past 12 months.
Situated less than 10 kilometres from the CBD and close to the airport, Botany includes boutique bakeries, breweries and good opportunities on decent sized blocks of land.
Blacktown was the second suburb to watch in the state, experiencing a 6.5 per cent growth over the last year with a median house price of $900,000.
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Blacktown has grown by 6.5 per cent over the past year.
Ropes Crossing in the Blacktown LGA had the highest gross rental yield in Sydney in October with a four per cent return.
According to Upside Realty director of sales and operations James Kirkland, Blacktown is a young family suburb with high levels of employment and relatively new homes that are popular for those working in Parramatta.
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“Despite rising interest rates seeing buyers lose confidence this year, we’re predicting a rebound mid next year, and there are still opportunities for buyers in the right places,” Mr Kirkland said.
Ropes Crossing in the Blacktown LGA had the highest gross rental yield in Sydney with a four per cent return.
“For many people who’ve fixed their interest rates, that term ends next year so there’s likely to be stock coming onto the market as those rates put pressure on households.”
Outside of Sydney, there are a number of regional areas positioned for growth.
Port Macquarie topped the list for regional suburbs, with strong interest driven from buyers looking to make a sea change during Covid.
Port Macquarie’s median house price sits at $725,000.
While house prices across the board fell, the township recorded 0.7 per cent growth to a new median of $725,000 – a 20.8 per cent rise for the year.
Prices in Newcastle, the second largest city in NSW soared during the pandemic but the increase in stock this year levelled the field for buyers.
Central Western towns like Orange made the list, with the new regional first home buyers scheme making the suburb an area to watch with the median house price sitting at $700,000.
Median house prices in Newcastle have risen by 0.7 per cent.
Mr Kirkland said Sydneysiders were no longer restricted to the eastern suburbs if they wanted a luxury apartment near the water, with many development projects underway across the state.
“We are already starting to see a ‘regional reverse’ as the regional markets stabilise following the exponential growth we saw during the pandemic with people moving out of capital cities.”
“In many regional areas growth has actually outstripped the cities but the market is starting to return to a bit more of a normal pattern and we’re expected to see opportunities stem from that in the coming year.”
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