Housing prices are on track to rise 4 per cent a month over the next six months in chronically undersupplied areas of Sydney, defying the surge in listings that has taken some heat out of the market in the NSW capital.
Demand most strongly outpaces supply in Pittwater, Warringah and Sutherland, while prices will also keep rising in Newcastle, Gosford, Port Stephens and the Snowy Mountains, where listings remained low relative to demand, data provider and consultancy Suburbtrends says.
In ACT Weston Creek, Tuggeranong and Woden Valley also face escalating prices.
“Most of these markets appear to have surged past their peak rate of growth during the last quarter, but the underlying strong demand and limited supply would likely keep them growing, albeit at a slightly reduced rate in 2022,” Suburbtrends director Kent Lardner said.
“Growth rates for these areas are expected to range between 1 per cent per month to a high of 4 per cent per month for the next quarter or two.”
ANZ has predicted Sydney dwelling prices to rise by 6 per cent this year, a sharp slowdown from last year’s 23.5 per cent growth. But the figures are a clear reminder that even as this happens some areas will continue to draw many buyers and trigger competitions for homes.
House prices in the Warringah area, which covers Frenchs Forest, Freshwater, Belrose, Narrabeen and Collaroy, are expected to climb between 3 per cent and 4 per cent each month over the next three months.
Similar growth is forecast in Woden Valley, which encompasses Curtin, Garran, Hughes, Chiefly and Lyons.
Newcastle is poised to see up to 2 per cent growth each month over the next quarter or two, while Gosford house prices are on track to post up to 3 per cent monthly gain.
“The recent surge in listings was not enough to satisfy demand in these areas,” said Rich Harvey, chief executive and founder of Propertybuyer, a Sydney-based buyer’s agency.
“House listings have been tight for so long in areas such as Freshwater, Avalon and Newport on the northern beaches, where stock had fallen by around 40 per cent.
“With such a strong demand, I’m not surprised if we see another 5 per cent to 7 per cent price growth in these areas this year.”