27 Aug Regional Areas Outperforming Sydney In Property Price Increases
According to Knight Frank’s Residential Property Report regional locations around the Sydney area are outpacing Sydney itself in terms of property prices.
In particular the Blue Mountains, Central Coast and Wollongong areas are the regions that are outperforming Sydney.
Michelle Ciesielski, the Director of residential research at Knight Frank, says that although requiring a longer commute for those working in Sydney, the peripheral areas have much to offer.
“In most instances these satellite towns also offer a reasonable proximity to Sydney by road and rail whilst being amongst a scenic or coastal lifestyle when the working day is over,” she states.
The Numbers Tell All
The greater Sydney region’s residential property price growth was at 12.2% up to the first quarter of 2016. Compare that figure to the three regional areas that outpaced Sydney; The Blue Mountain area touted a whopping 17.8% increase, and the two trailing regions were Central Coast at 15% and Wollongong at 13.6%.
There has been elevated growth in infrastructure in the corridors around Sydney and this coupled with a population increase have helped to lead to the growth in property prices.
The Central Coast Possibly the Next Blue Mountains for Property Price Growth
Todd Hunter of wHeregroup explains the appeal of the Central Coast and why he thinks that it may be the next hot investment location or a place to call your home.
“Being commutable to Sydney is a huge bonus, but employment is now gaining momentum in the region itself making it a lifestyle choice by many to live and work in the area. And value for money in housing, makes it a no brainer for many,” He says.
Affordability the Main Component of the Surge in Property Price Growth
Ms Ciesielski explains the reasoning behind the growth surge.
“Residential markets located on the periphery of capital cities respond to heated property prices by providing a more affordable option for those priced-out of the more traditional metropolitan markets.”
For example, homes in the Blue Mountains can be found sub $600,000. Domain Group chief economist Andrew Wilson says that this affordability drives homeowners to place less priority on having a short commute time.
“It’s a decision between affording to live in Sydney or drive two hours to work and people are choosing the commute,” he states.
And, in much the same way, New York City has sprawled out in the USA, Dr. Wilson says,
“The suburban sprawl of Sydney has caught up and sooner rather than later we’ll consider Wollongong as a part of Sydney,”