Sydney's bridesmaid suburbs: How APM identified 15 hotspots
Homebush, Petersham, Turramurra and Ryde are among 15 suburbs that will have price growth of about 12% this financial year, according to Domain Group's Australian Property Monitors.
Suburbs that have been in the shadows of higher priced neighbours dominate the list.
House prices should keep growing at between 5% and 7% this financial year, according to APM senior economist Dr Andrew Wilson.
Wilson forecasts the capacity of buyers to keep pushing up prices was reaching its limits, hence suburbs with the most growth this financial year would be the ones that had been overlooked or seen to be more affordable.
"People will start looking at suburbs that represent better value and are more affordable to them," he told Domain.
"It's those suburbs adjacent to the big movers and shakers, the bridesmaid suburbs, that still represent affordability ... and that's why we'll see stronger price growth [in those areas]."
Herron Todd White's head of valuers, Brendon Hulcombe, is a big believer in looking adjacent.
"Faced with affordability challenges, it can pay to look at areas where neighbouring suburbs have experienced strong price growth," he advised in the recent Westpac property report.
"When suburbs share the same infrastructure facilities, notably transport links, there’s a good chance that price growth will ripple outwards," he said.
The Sydney suburbs with 12% growth prospects in 2014-15:
- Homebush
- Petersham
- Eastwood
- Epping
- Marsfield
- North Epping
- Ryde
- Turramurra
- Herbersham
- Lethbridge Park
- North St Marys
- Parramatta
- South Granville
- Tregear
- Whalan
Source: Domain Group's Australian Property Monitors
