Surry Hills Touted as Top Investment Spot Amid Cautious Outlook on Perth

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In a surprising twist in the real estate narrative, inner Sydney’s Surry Hills has emerged as the prime hotspot for property investment, according to the latest Price Predictor Index from Hotspotting. This analysis flags the suburb as the leader among areas expected to witness substantial growth in home values. However, the report concurrently advises a cautious approach towards the market in Perth, which is showing signs of deceleration.

Aidan Devine, reporting on these findings, highlights Surry Hills’ position at the pinnacle of the list due to a significant uptick in transaction volumes—a reliable precursor to price increases. “Surry Hills was the suburb with the sharpest pick up in transactions, with experts revealing it followed a trend of rising unit demand,” Devine notes, indicating a renewed interest in inner-city living as businesses revert to in-office work.

Hotspotting Director Terry Ryder elaborates on the trend, explaining the relationship between sales activity and price movements. “History shows that there is a correlation between sales volumes and price movements: the number of sales changes first and then prices react – with a time lag,” Ryder states. This pattern suggests that investors have the opportunity to capitalize on emerging trends before prices fully adjust.

Contrastingly, the outlook for Perth appears less optimistic. Despite recent gains, emerging data suggests the city’s market is cooling. “Sales volumes in the city were not only falling but it was taking longer for properties to sell and homes at the top end of the Perth market were beginning to fall,” Ryder warns, advising investors to tread carefully.

In discussing the nationwide trend, Tim Graham, general manager of Hotspotting, identifies Surry Hills as a standout. “We believe the top supercharged suburb in the nation is currently Surry Hills in (inner) Sydney,” says Graham. He notes the increasing demand for apartments in the area, reflecting a broader national interest in more affordable, smaller-scale living options.

Lloyd Edge, a buyer’s agent and investor, echoes this sentiment, pointing to a shift back towards units and townhouses in the wake of rising housing costs. “Following the pandemic there was less demand for townhouses and units, but as housing in general has got more expensive the market for smaller properties is coming back,” Edge observes.

This nuanced view of the Australian real estate landscape offers a compelling narrative for potential investors, balancing the potential for growth in dynamic markets like Surry Hills against the caution warranted in places like Perth. As the property market continues to evolve post-pandemic, these insights provide crucial guidance for navigating the complexities of real estate investment.

Reference:

https://www.realestate.com.au/news/unlikely-suburb-now-best-place-to-buy-in-australia/