While property sales in Sydney continue to slow down, one suburb is bucking the trend and leading experts to dub it as the only growth suburb remaining in the harbour city.
According to the quarterly Price Predictor Index by Hotspotting founder Terry Ryder, activity in the inner west's Drummoyne continues to heat up in spite of the fewer sales recorded in almost every other area in Sydney. In fact, only Drummoyne has "forward momentum" in all of Sydney's 700 suburbs. This may be due to new developments in the area.
According to SQM Research managing director Louis Christopher, more properties are available now in Drummoyne than this time last year despite lower listings.
"In the past 12 months, unit prices are up 16 per cent—a big jump. Two-bedroom units now have a median price of $940,000, with three-bedroom houses with a median price of $1.6 million," said Christopher. "I don't think it's slowing down as listings are tight and the vacancy rate is tight."
But those who want to score a property in Drummoyne have to battle against upsizers with deep pockets, said Domain Group chief economist Andrew Wilson. He expects another five to seven per cent growth in the inner west region over the year.
Sydney now ranks last among eight capital cities due to having just one rising market, compared to Melbourne's 28, Adelaide's 47, and Brisbane's 41 growth suburbs.
"For Sydney, it's exactly what you would expect—the market has run out of puff after about three years as prices can't keep rising at the levels they have. Sydney has lost its mojo," Ryder said.
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