Sydney's eastern suburbs promise further price growth
April 22, 2014 / Written by Rich Harvey
Research from Residex shows that even while national property price growth is forecast to slow down throughout the rest of 2014, some hotspots are geared for further rises.
Bellevue Hill and Rose Bay are two such locations, both expected to have average annual growth of 10 per cent or more over the next five years.
"Stable growth never occurs in a linear way," stated John Edwards, founder of Residex.
"Overall, we expect to see a fall in growth by the end of the year, followed by two to three years of minimal to zero growth. Then by 2018, we are expecting to see a return to strong growth rates."
This makes it all the more important for potential property investors to find areas where growth will continue. And according to Mr Edwards, Sydney prestige real estate represents just such an opportunity.
Unlike property in the lower-end of the price scale, luxury real estate in the eastern suburbs isn't subject to the same restrains put in place by affordability concerns. This means that while sales in some parts of Sydney may decrease due to rising prices, the clientele that is looking to live in Bellevue Hill and surrounding areas is less concerned with price.
Besides houses in eastern suburbs like Bellevue Hill and Rose Bay, research also pointed to unit price growth in North Bondi, which is set to see an annual return of 4 to 8 per cent over the next five years.
Investors in the Sydney region would be wise to research these areas if they want to achieve the best possible returns in the future.