The Sydney suburbs that will see the biggest uplift in apartment values after interest rate cuts
With interest rate cuts on the horizon, certain Sydney suburbs are poised for the strongest gains in property values.
Research by property data analytics firm, CoreLogic, shows that higher-priced markets, particularly those with a high concentration of investors, tend to be the most responsive to cash rate reductions.
Chatswood and Lane Cove are projected to see a significant uplift of over 16 per cent if the RBA cuts the official cash rate by one percentage point (or four 25 basis point cuts).
The forecasted price growth bodes for those soon to settle at Sterling in Lane Cove North by builder-developer Scion.
Approaching completion, Sterling comprises just 50 one, two and three-bedroom apartments set amid nature but within close proximity to key commercial retail hubs like Chatswood and Macquarie Park.
In Chatswood, another suburb that is benefitting from the extended Sydney Metro, Melbourne-based developer Goldfields is into construction at The Bryson, one of the first developments approved under the new Chatswood CBD Planning and Urban Design Strategy.
The 70 one, two and three-bedroom apartments spread across a 26-level Make Architects-designed building just 550 metres from the Chatswood Metro Station.
The Eastern Suburbs, one of Sydney’s most prestigious residential areas, is expected to see strong growth of nearly 13 per cent if rates drop by one per cent.
Builder-developer TOGA is well placed in Sydney's east with their recently completed Surry Hills Village, their landmark mixed-use development they recently completed.
There are just a handful of apartments and townhouses left in the building at the end of Crown Street. Surry Hills Village also is home to Wunderlich Lane, the newest go-to hospitality precinct in Sydney.
Just up Cleveland Street on Anzac Parade, TOGA is developing The Kensington, strategically located not only opposite a light rail stop giving future residents easy access into the city, but a short walk to the burgeoninig Randwick health precinct, as well as the main campus for UNSW.
TOGA says The Kensington, 142 one, two and three-bedroom apartments above a retail strip, is one of the most connected developments they've ever produced.
Beyond Sydney’s premium inner suburbs, areas outside of Sydney are also expected to boom from rate cuts.
CoreLogic says units in Dural to Wisemans Ferry will be the best performing, with increases of up to 18 per cent, while Campbelltown units could rise by 16 per cent.
"Certain markets will see a bigger boost from rate reductions than others, and it may be because of market characteristics like price point, location and investor interest," CoreLogic's Head of Research, Eliza Owen, says.
"CoreLogic estimates based on previous periods of rate reductions that national dwelling values would increase an average of 6.1 per cent for each one percentage point decline in the cash rate.
"Relatively expensive markets have historically shown stronger responses to reduced cash rate settings. A reduction in the cash rate could spur a recovery trend in the high end of the Sydney and Melbourne housing market, which tend to be the bellwether for broader market recoveries in those cities."
