South Sydney property prices expected to continue growing in 2020: HTW residential

South Sydney property prices expected to continue growing in 2020: HTW residential
South Sydney property prices expected to continue growing in 2020: HTW residential

The south, like the rest of Sydney, had a strong end to 2019 after a sluggish start to the year, according to the latest Herron Todd White (HTW) residential report. 

The valuation firm asked their valuers to give an educated outlook on the residential market in their service areas.

"We are expecting property prices to continue to increase in 2020 across all property types and price points. Current levels of stock on the market continue to be below average, although are likely to increase as the year progresses," the valuation firm stated. 

In the Domain Livable Sydney study released in November last year, a number of suburbs in the Sutherland Shire made it into the top 100 suburbs with Jannali (13th) and Sutherland (18th) mixing it with some very well-known prestige harbourside suburbs at the top of the list.

"Median prices in the Sutherland Shire region dropped more than the Sydney average during the decline, however there is already evidence that property prices have rebounded quickly since the federal election last May," the valuation firm said. 

A property at 21 Charles Place, Jannali (pictured below) sold in May 2019 for $1.195 million after 187 days on the market.

The property resold in the same condition in November after just 11 days on the market for an undisclosed price slightly above $1.3 million, representing a 10 percent increase within a six month period.

South Sydney property prices expected to continue growing in 2020: HTW residential

There still appears to be some good opportunities with a number of suburbs along the railway line having a median house price at or below the million dollar mark, according to realestate.com.au data.

Engadine ($900,000), Sutherland ($962,000) and Loftus ($980,000) have median house prices below $1 million, whilst Kirrawee ($1,007,500) and Jannali ($1.010 million) sit just above that mark.

These suburbs already enjoy a railway station with travel times of less than 40 minutes to the CBD during peak times and longer term will benefit from Stages 2 and 3 of the F6 Extension, should they be given the green light by the New South Wales state government.

In the St George area, Riverwood ($879,000), Narwee ($985,000) and Arncliffe ($1.005 million) provide a similar opportunity to purchase near a railway station in this price range.

Adjacent to Sydney Airport and the M5 Motorway and only 11 kilometres from the CBD, Arncliffe provides an affordable alternative to its neighbouring suburbs including Banksia ($1.065 million), Rockdale ($1,080,500), Tempe ($1,117,500) and Bardwell Valley ($1.15 million).

The report notes the Sutherland Shire experienced a spike in new unit development completions over the past 12 to 18 months.

This caused an oversupply of units, particularly along the corridor between Kirrawee and Caringbah, which put downward pressure on both prices and rents.

In September last year, a two-bedroom, two-bathroom unit in a complex at 9 Urunga Parade, Miranda (pictured below) sold for $700,000 after originally being purchased off the plan in April 2017 for $719,040.

South Sydney property prices expected to continue growing in 2020: HTW residential

"Whilst this type of product does still need to be treated with some caution, the drop off in supply of new units currently under construction will allow demand to begin to catch up and we expect prices in this market to begin to improve in 2020 as well," the valuation firm stated. 

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Htw South Sydney

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