Australian Property News
Inner city leads NSW house price growth
Posted on Tuesday, July 27 2010 at 4:51 PM
New South Wales suburbs close to the CBD are the first to show signs of significant price recovery, new research reveals.
The top 10 suburbs in NSW that recorded the highest price growth in the 12 months to March 2010 have been identified by PRDnationwide research.
PRDnationwide managing director Jim Midgley says seven of NSW's top 10 growth suburbs were located within seven kilometres of the Sydney CBD.
"Topping the list for best price growth was Bondi Junction in Sydney's inner east - registering an astonishing 56.8 per cent increase in median sale price," he says:
| House | 1yr Growth |
Total Sales six months to 31 Mar 10 |
5yr Growth |
Median six months to 31 Mar 10 |
| GLEBE | 36.7% |
30 |
8.0% |
$1,111,000 |
| BALMAIN | 39.7% |
73 |
11.1% |
$1,250,000 |
| BUNDANOON | 40.6% |
31 |
6.0% |
$450,000 |
| KENSINGTON | 41.7% |
23 |
7.4% |
$1,700,000 |
| WILLOUGHBY | 42.0% |
45 |
7.7% |
$1,250,000 |
| WOLLONGONG | 44.6% |
38 |
2.9% |
$563,750 |
| LANE COVE | 45.6% |
46 |
7.9% |
$1,278,000 |
| OBERON | 48.3% |
20 |
12.6% |
$353,000 |
| NORTH BONDI | 52.2% |
39 |
7.7% |
$1,750,000 |
| BONDI JUNCTION | 56.8% |
32 |
8.7% |
$1,380,000 |
PRDnationwide research analyst Dan O'Halloran says North Bondi recorded the second highest price growth of 52.2 per cent.
"Bucking the inner city trend for growth was Oberon, which is located approximately 125 kilometres drive west of Sydney's CBD," he says.
Despite Oberon achieving a 12-month growth rate of 48.3 per cent, the closing median sale price of $353,000 still represents a relatively affordable real estate market.
O'Halloran says an overall trend of strong growth has emerged in Sydney's prestigious suburbs, with seven out of the top 10 recording a median greater than $1 million.
O'Halloran says those who can afford to buy in 2010 must be able to comfortably absorb the interest rate rises and access finance, as the banks remain tight on lending.
"These types of buyers are generally reasonably well off and are focusing on property in a higher price bracket to the first homebuyers of 2009," he says. "This is where the dynamics of the real estate market has changed, and this change in the type of product being purchased has resulted in the dramatic increase in the median sale price of many premium suburbs within New South Wales."
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