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While many Sydney suburbs performed strongly last year, recent findings indicate some are yet to take off.
Onthehouse’s property research arm, Residex, has reported several Sydney suburbs offer potential investment opportunities for buyers in 2014.
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Growth in the top performing suburbs over the past 12 months was significant, with people in Northbridge, for example, having increased their net worth by more than $300,000.
Consulting analyst for Onthehouse and founder of Residex John Edwards said while these 'best performers' were indicators of how a market was going, they were not necessarily the place to rush out and buy in.
“Strong performing suburbs are often areas that have already seen a majority of their growth for this current cycle,” he said.
“On the other hand, the poor performers are probably yet to see significant growth during this cycle and may offer investors very good growth prospects, and homebuyers an opportunity to purchase well from despondent vendors.”
The Onthehouse research also showed that house and land owners in the top performing areas had done better in all respects compared to those who owned units which, given the hype around units, may surprise buyers.
Mr Edwards said that knowing where a suburb was in its growth cycle was the key to identifying the opportunities within that area.
“If you combine the knowledge about a suburb’s growth cycle along with research data [and] suburb information and if you find out what the public considers the best streets are, then good buying decisions should result,” he said.
“For example, the data suggests that North Parramatta has probably seen a majority of its growth, whereas suburbs like Green Valley and Camden South are yet to see their period of strong growth.
“Recent auction activity and the numbers point to a market where the upper end is beginning to slow and the lower cost areas are currently the most sought-after. Based on the data, it would appear lower cost suburbs will see the strongest growth in the next 12 months.”
