7 min readWith the worst of the pandemic most likely over, things look like they’re adjusting back to normal. The property market has weathered the storm, and buyers and investors are seeking out their next purchase. Here’s a quick rundown of a few up and coming Sydney areas we’ve noticed climbing the property ladder.
After the worst economic downturn in almost a century, buyers and investors alike are prepping for a comeback. The Australian housing market has held onto its foundations and maintained a surprising resilience during the pandemic. Although unemployment is still higher than we’d like, consumer confidence is increasing. Despite pessimistic predictions, 2021 is tipped for strong economic recovery, and it’s an excellent time to buy.
With buyer sentiment increasing, low interest rates and post-COVID government incentives pushing for a market resurgence, the influx of buyers has pushed Sydney house prices up. With that being said, lots of interest is channelled towards areas that offer lifestyle benefits, vibrance and are only a stones’ throw away from the city centre.
5 up and coming areas in Sydney 2021
The gentrification in the Inner West of Sydney has flipped what it means to live in this ever-evolving hub. In particular, Petersham has transitioned from being a somewhat rough neighbourhood in the 1970s into a flourishing, family-friendly neighbourhood.
Petersham offers the quirks of a small village and attracts a mixed demographic of young professionals and young families who can live affordably while maintaining a city-living lifestyle near the CBD.
With many young professionals working in the CBD, Petersham’s direct line into the city provides its residents with the convenience of a short commute to work. Petersham’s gentrification and wealth growth have led to a wide selection of childcare facilities and nearby access to popular private schools.
Petersham offers everything a young family needs, from public parks, aquatic centres, trendy and family-friendly cafes and sporting fields.
Between its single and double storey terraces, freestanding homes and selection of Victorian mansions, Petersham offers conveniences, affordability and is a highly liveable suburb packed with charm. Its terraces and freestanding houses offer space, light and a backyard to boot.
Petersham’s average house price is around $1.66 million with units sitting comfortably below $1 million at $770K, while its average weekly house rent is $700. Not too shabby considering it is only 8km away from the CBD. With a unit rental yield of 3.11%, investors are likely to flock to this inner west goldmine.
Bexley is what you might call an ‘underrated’ suburb and offers massive potential for growth. Bexley offers space, access and convenience to those that live there.
In terms of public transport, its closest train stations are in its neighbouring suburbs of Banksia and Bexley North. However, these are only a short drive.
While it lacks a major shopping mall, its main drag along Forest Road offers a range of small businesses, restaurants and supermarkets, with plenty of multicultural cuisine options too. It’s only a quick 10min drive to neighbouring suburbs that provide you with everything you could need shopping-wise, like Westfield Hurstville and Rockdale Plaza.
Bexley offers a range of property types, from anywhere between $500K to $2.5 million. As the post-pandemic recovery continues, low interest rates and government incentives have meant there’s a higher demand for those wanting larger blocks, proximity to the city and an affordable price tag.
Bexley is only 15min from Sydney airport and is attracting young families who want to take advantage of its parks, suburban feel and choice of specialist, private and religious schooling options.
Bexley’s average house price sits around $1.28 million with an attractive rental yield of 2.48%, while average unit prices are $695K. The average house rent is $615 per week – perfect for those wanting to take advantage of affordable living or looking to supplement their income with an investment property.
Padstow Heights, located in Sydney’s south-west, has gained up-and-upcoming status because of its surprising proximity to the CBD. As with any gentrifying suburb, young couples and families are flocking to Padstow Heights because of affordable prices, spacious home sizes, good schooling options, river proximity and low crime rates. It ticks all of the boxes.
While Padstow Heights is a relatively small suburb, it has easy access to large retail outlets in Hurstville and Bankstown. It’s close to the main motorways (both the M2 and M5), and leafy surrounds on Georges River provides residents with the best of nature and convenience of accessibility. Better yet, it’s located only 23km from Sydney’s CBD.
The only downside to Padstow Heights is its lack of access to public transport. The closest train station is in Padstow or Revesby (not within walking distance), making access difficult for those without a car. However, the average house price sits at $968K with a rental yield of 3.04%, with more modest homes selling for around $800K.
Beverly Hills has it all. Packed with young professionals, established families, uni students and retirees, Beverly Hills is currently in high demand for its convenient location to the airport, CBD and the M5 motorway.
Beverly Hills offers fantastic eateries, a family-friendly vibe with low crime rates and excellent schooling options. It’s easy driving distance to the CBD and local train stations, access to public parks, and good shopping. Currently, plans are in development to expand its commercial sector while establishing pedestrian-friendly walkways and more supermarkets. In the meantime, larger retail areas in Hurstville are only a stone’s throw away.
Located only 15km south-west of Sydney’s CBD, Beverly Hills hosts a marvellous selection of multicultural cuisine and entertainment choices. Its range of red-brick bungalows and mid-century homes offer plenty of opportunity for first home buyers, investors and those keen to renovate.
With buyer sentiment increasing, there is high demand in the area, and there’s no surprise why. With the average house price of $1.2 million, a median rental value of $590 per week and a rental yield of 2.54%, you can’t blame buyers for flocking to Beverly Hills to snap up a deal.
What Peakhurst lacks in some areas, it makes up for in others. It’s a comfortable 30min drive to the CBD, making this leafy residential area a welcoming reprieve for those that want access to the city without the hustle and bustle of the inner-city suburbs.
Situated in Sydney’s south, Peakhurst offers affordable rent, house prices and a range of property types to suit anyone’s fancy. Its affordability and larger home sizes are becoming attractive to young families to settle down in this southern suburb.
The one thing that Peakhurst lacks is public transport. CBD workers either have to drive or catch the bus to a train station in a neighbouring suburb. The buses, however, are quite frequent during peak times.
While Peakhurst doesn’t offer a shopping hub, it’s conveniently close to major shopping precincts in Hurstville and Roselands which are only a 10minute drive away. The main strip is known to get a little traffic-heavy during rush hour. However, the noise is drowned out once you hit the residential streets.
Between its public park, multiple decent schools, sporting grounds and aquatic centre Peakhurst is a perfect place to raise a family for an affordable price. Peakhurst’s average house price sits comfortably just over a million dollars at $1.05 million. House rental prices, on the other hand, are $595 per week and rental yield is 2.92%.
Why the surge?
We forecast that the property market is set for a post-pandemic comeback in 2021. These five Sydney suburbs have the potential to thrive when the market stabilises and record strong price growth in the long term.
With government incentives such as the HomeBuilder Scheme and an increase in demand, Sydney house prices are growing and will continue to do so in 2021. We feel these five areas tick all the boxes for those wanting to either get their foot in the property market door or snap up an investment property.
Now has never been a better time to seek a property valuation to assist with your next real estate decision. Having an independent, local property valuer look into factors such as supply and demand, proximity to public transport and surrounding prices will provide you with the certainty of knowing where your property sits within the current market.
Disclaimer: This is a general guide only and is not intended as a substitute for financial advice.