Sydney appears in top 28 suburbs for investors

Sydney-suburbs-are-among-the-top-28-for-investors-across-Australia_157_6002872_0_14101766_300Sydney suburbs continue to perform exceptionally well for investors in the Australian property market, with NAB Group Economic survey revealing that across all of NSW, the hottest suburbs for investors in 2015-16 are those in Sydney.

The NAB economic survey takes into account the predictions of over 300 real estate agents and property developers to derive a list of the top 28 suburbs across Australia that are tipped to perform strongly in coming years. The report also shows that burgeoning house prices are the biggest obstacle to buying an existing property nationwide, but those looking for hot trends in capital growth need not look any further than Brisbane and Sydney.

Brisbane is expected to displace Sydney over 2015 with capital growth of 5.7 against Sydney’s predicted 4.1 per cent rise, followed by Melbourne (2.7 per cent), Adelaide (2.1 per cent) and Perth (1.8 per cent).

In 2016 NAB Group Economics forecasts 3.8 per cent growth for Brisbane, 2.3 per cent for both Sydney and Melbourne, trailed by just 2.2 per cent and 1 per cent in Adelaide and Perth respectively.

From the NSW pool, Sydney suburbs are predicted to record strong price growth in 2015. The inner west continues to top the property ladder with Glebe, Marrickville, Newtown and Surry Hills all making the list, joined by Manly, Eastwood, Penrith, Ryde and Oran Park. Central Sydney is also expected to continue ballooning in price.

“Our assessment of the market remains that house price growth will continue to moderate because of rising unemployment, sluggish household income growth, affordability concerns, cost of living pressures and high levels of household debt,” said Alan Oster, group chief economist, in a January 21 release.

The survey comes prior to heightened speculation on RBA cuts to interest rates, but Mr Oster predicted a cut of 25 base-points in March and further trims in August, bringing the official cash rate down to 2 per cent. In any case, he said future rate cuts “should support house prices a little more than previously expected.”

Despite slipping behind Brisbane in the overall rankings forecast for the next few years, Sydney remains a persistent contender for NSW investors looking for capital growth opportunities. If you’re looking to expand your portfolio in light of this survey, a local real estate agent will be able to provide more comprehensive advice on each of these suburbs.

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