Property insiders reveal the best Sydney suburbs to buy a home in 2024

According to property insiders, the dream of buying a house in Sydney is still alive, but you need to know where to look.

Australians have faced rising pressure on the cost of living in recent years and despite thirteen interest rate increases in eighteen months, house prices in Sydney are largely still rising.

But experts have revealed there is still value to be found in the port city with suburbs in the Hills district and the South West, all offering great value for money in 2024.

Other top buys include Dee Why on the northern beaches, Glenmore Park in Sydney's west and Coogee, Kingsford and Kensington in the eastern suburbs.

Nerida Conisbee (pictured), chief economist at real estate agency Ray White, says established homes in the Hills District and south-west Sydney are her top picks for 2024.

Nerida Conisbee, chief economist at real estate agency Ray White, says established homes in the Hills District and south-west Sydney are her top picks for the year ahead.

“It's a lot more expensive to build a new home now, so buying a home that's a few years old in these areas is a smart purchase,” she shared. real estate.com.au.

Mathew Tiller, head of research at LJ Hooker Group, said there will be more listings and a wider range of choices in the early months of the year.

In his view, the hotspots will be suburbs where values ​​have stabilized or fallen over the past year, making them more affordable.

Dee Why on the northern beaches, where apartment prices fell 8.4 per cent in 2023, is a good example, Tiller said.

'Glenmore Park offers families good value, with the median house price falling 2.4 per cent to $1 million; while Raby in Sydney's south-west saw the average decline of 1.8 per cent to $865,000,” he added.

Buyer's agent and author Lloyd Edge said getting the right property at the right price is a good investment, naming Coogee, Kingsford and Kensington as his picks for this year.

Mr Edge said the beachside suburb of Coogee is on the verge of major growth due to infrastructure projects such as the $2.2 billion South-East Light Rail linking the area to the city centre.

Kingsford and Kensington, both close to Coogee, will also benefit from the light rail project, providing a direct link to the CBD and Sydney Harbour.

Laing and Simmons chief executive Leanne Pilkington said many investors were selling Sydney and others were selling their second homes as mortgages rose.

Australians have faced rising pressure on the cost of living in recent years and despite thirteen interest rate increases in eighteen months, house prices in Sydney are largely still rising. The photo shows a house for sale in Kellyville

Inflation is still high at 4.9 percent and the RBA does not expect the consumer price index to return to the top of its 2 to 3 percent target until late 2025 (stock image)

“These trends create potential for first home buyers if they can get their finances in order,” she said.

The most important factor for investors should be infrastructure, such as public transport connections, but also rental yields and vacancy rates in an area.

“However, when you buy a home, you should buy what meets your family's needs in a location that is important to you,” she said.

Elsewhere in Australia, the Reserve Bank's 18-month rate hike, which will take the cash rate to a 12-year high of 4.35 percent, is expected to slow the market in 2024.

Inflation is still high at 4.9 percent and the RBA does not expect the consumer price index to return to the top of the 2 to 3 percent target until late 2025.

But Stephen Halmarick, chief economist at the Commonwealth Bank, Australia's largest home lender, expects inflation to return to the target range by the end of 2024, with rate cuts starting from September.

“Inflation is also slowing in Australia, but at a slower pace than in some other countries,” he said.

The beachside suburb of Coogee is on the cusp of major growth due to infrastructure projects such as the $2.2 billion South-East Light Rail. The line at nearby Randwick is pictured

CoreLogic's Best of the Best report predicts that the housing market would slow in early 2024 but regain momentum if interest rates were cut again.

“Combined with expectations that interest rates may remain high for longer, households are likely to see their budgets come under further pressure and more households may find themselves in acute financial stress,” the report said.

“However, market conditions could improve again towards the end of the year if there is an easing of monetary policy.”

Last year a flower wholesaler bought Australia's most expensive home for $76 million, with panoramic views of the Sydney Harbor Bridge and Opera House, and eight bedrooms, eight bathrooms and six parking spaces.

Australia's cheapest home in 2023 cost just $8,000 in the remote Western Australian town of Kambalda East – a price unlikely to be beaten in 2024.

A flower wholesaler bought Australia's most expensive house (pictured) for $76 million in 2023 – with panoramic views of the Sydney Harbor Bridge and Opera House

A three-bedroom house on George Cowcill Street in Kambalda East in Western Australia sold for just $8,000 in June 2023, making it Australia's cheapest house