South Sydney Property Review 2024

It has been a long time since I did my last report, sorry guys sometimes life gets in the way. Read on for an infiltered a local snapshot of what prices across different types of property has done and my predictions & where I would be investing into for the best returns. If you read any of my reports in 2022 or 2023 you would know that I am not surprised to see that all the best growth has come from WA recently. I've been pushing that market for a long time.

Locally in South-East Sydney the market has been good, not great, and inconsistent with a few aggressive little growth spurts here and there for property of different types. Most interestingly it has been in line with a backdrop of rate hikes. Right now, houses are generally in line with Sydney’s normal growth curve. My research shows houses which sold between 26/07/2013-26/01/2014 would be worth a just shy of double today. By no means are we ahead of normal growth. Units on the other hand have plenty of catching up to do particularly around the high-density areas. The big three were Meriton’s Eastgardens precinct, Meriton’s Mascot precinct and Green Square. When it comes to the amount of stock remaining to be sold off the plan in these three areas, I would safely guess that it is closer to the end than the start. Prior to Mascot’s big release in 2014-2015 we were getting big crowds at our apartment open homes. This market is slowly regaining momentum, stock is getting absorbed and buyer confidence is creeping in. It takes a while for sentiment to change when it comes to a shell-shocked market. The Gold Coast is a great example, this market crashed by 50% in 2009 and had a huge high-density portion. Houses recovered first and then the apartments. But because a few years went by, when the apartments did recover it all happened at once.

This is happening in Perth and WA right now. Buy low and sell high. Its riskier purchasing a property that you have seen good 5 year growth on, than a house that has not had any.

The market backdrop over the past two years has not been great. Interest rates climbing and a rental crisis. In my mind that only equals more motivation for people to buy property. People want control. First home buyers saving for deposits are not motivated to continue saving for a better house, they are now more motivated just to enter the market as soon as possible before their deposit is worth nothing. I’m seeing much more flexibility in the marketplace with buyers more willing to make smarter choices so their money can work for them. The interest rates should start coming down this year and it will kick off another growth spurt. Sydney is a very predictable market. I could say I expect 10-15% growth in most Sydney markets every single report and be right 75% of the time. The only thing unpredictable was when this ironically still happened last year during the rate rises.

Our area is without a doubt in my mind the best place to live in Sydney. With beautiful beaches, Botany Bay and the best arterial roads taking you anywhere is Sydney you cant go wrong. For this reason I still think its good value for Sydney and will prove to be one of the most stable and reliable markets in the city.

If you are looking to purely invest, focus on opportunities in areas which have not performed or other states which are well overdue for a boom. WA is still the only major capital that stands out in my mind. I put my money on Geraldton early last year and will continue this pattern until future notice. Also looking around Melbourne fringe areas, an area I am less familiar with however it might be emerging as my next pick with the exploding population and absence of significant growth since covid, where lockdowns were the strictest in the country. Sydney is on the up, and with Melbourne famously following Sydney’s fluctuations for so long, I think the recipe is very good. Closer to home I would look into the central coast, and apartments in Sydney CBD and high-rise areas of South Sydney.

Billy Couldwell

0416 713 721