NSW is the place to be for house hunters, making up half of the 10 most in-demand suburbs in Australia, according to realestate.com.au data.
The July Property Outlook report shows an increase in demand for certain Sydney suburbs, which are now affordable to more buyers after years of consistent price declines.
Allambie Heights in Sydney’s Northern Beaches is the most in-demand suburb in Australia, according to the report. It has jumped from number five on the list to the top slot since the last report was published in April.
Each property listed for sale in Allambie Heights gets around 2389 visits on realestate.com.au, compared to the NSW median of 704 visits per property.
Buying into the popular Northern Beaches suburb doesn’t come cheap; the median price in the area for all dwelling types is $1.5 million.
Next on the list is Narraweena in NSW where the median price is $1.3 million, followed by Birchgrove in NSW, which rounds out the top five. Properties in this area carry a median price of $1.5 million.
Demand for each suburb is calculated by the number of property views per suburb on realestate.com.au over the past six months, against the average numbers of listings.
The two Northern Beaches suburbs on the list are particularly sought-after by younger buyers, according to realestate.com.au’s chief economist Nerida Conisbee.
“Allambie Heights and Narraweena are more affordable Northern Beaches suburbs,” she says.
“If you look at somewhere like Manly – where the median price is nearly $3 million – Allambie Heights and Narraweena aren’t that near the water but they aren’t too far away, so comparatively they are more affordable”.
Property prices in NSW have declined in recent time, with the median house price in Sydney dropping by 7.7% since April to $900,000.
Buyers have noticed these price falls and are now looking more and more at buying in Sydney as they feel they can now afford to enter the market in the Harbour City.
“NSW dropped off the list during the boom and we saw areas on the coast as more in-demand, but now prices have dropped, these (Sydney) areas are more affordable to more buyers,” says Conisbee.
“These areas that are attractive to younger buyers aren’t traditionally premium suburbs (for NSW), but they are hipster suburbs that are gentrifying,” she says.
“They are also consistently low development areas” Conisbee adds, plus they tend to have the kind of amenities younger buyers want and are at a more accessible price point.
Much like Millswood in SA, which is also in the top 10, these areas are within commuting distance of the Adelaide CBD and are more affordable alternatives to traditional inner-city blue chip suburbs. The Adelaide Hills also offers buyers plenty of amenities such as stunning scenery, conservation parks, and gourmet food and wine retailers.
“There’s been a real shift to the Adelaide Hills because the premier suburbs like Unley just aren’t affordable,” says Conisbee.