Many property investors and buyers start their search for a “smart purchase” by Googling the most affordable suburbs in Sydney.
While scoring a property bargain might be seen as a positive, it’s important to widen the picture and think about value for money and return on investment as well as price.
Affordability vs buying well
Sydney’s most affordable suburbs may deliver low-cost property, but you will need to be aware of what condition a home is in and examine the pros and cons of the location from an investment or lifestyle perspective.
Then there is the topic of capital growth and whether or not you’ll achieve the returns you are hoping for. You don’t want to pay below market price, only to realise the home needs expensive repairs and doesn’t sit in an area with growth potential.
Where to buy in Sydney
If you’re looking for quality homes at an affordable price point that offer capital gain potential, head to Sydney’s North West.
According to the NSW Government’s North West Priority Growth Area Implementation Plan, the goal is for the North West to be a collection of vibrant and liveable neighbourhoods that balance the needs of a growing population with new infrastructure as well as opportunities for employment and recreation.
Suburbs like Norwest and Box Hill have a great deal of investment in terms of new shopping and community centres. An example is Carmel Village; the latest shopping destination in the Hills District, with a wide variety of stores, services and dining options. There are also plenty of good schools to choose from and the suburbs are close to major transport hubs as well as the Hawkesbury River.
The biggest advantage of this part of Sydney is the opportunity to invest in one of the area’s stunning new house and land packages, which will give you a modern, appealing home that is a delight to live in.
The changing face of Sydney’s North West
Once a quiet rural landscape, developer activity and vastly improved infrastructure in and around suburbs like Box Hill and Norwest have seen the area transform into a thriving community of growing families.
With the rapid growth of parklands, schools, shopping centres, restaurants and other entertainment venues, the district is recognised as being one of Sydney’s best for growing families.
Statistics demonstrate just how popular these areas are. In 2022, for example, Box Hill, Gables and North Kellyville were all in realestate.com.au’s top ten suburbs with the greatest 5-year growth, and have all continued to perform strongly. Similarly, Kellyville Ridge and Beaumont Hills were on The Sydney Morning Herald’s March 2023 list of Sydney suburbs experiencing a boom.
For Box Hill, rental prices are up by 22 per cent over the last twelve months. Meanwhile, average prices have settled after a high during the pandemic; which means now is a good time to buy before they start to rise again.
In Norwest, rental prices are up by 7.6 per cent and house prices held relatively steady in 2023, demonstrating the timeless appeal of this postcode.
Why buy new in North West Sydney?
When you’re buying a home or investing in property, it’s better to think in terms of ‘affordable’ and ‘cost-effective’, rather than simply looking for Sydney’s cheapest suburbs.
For example, investing in a piece of land rather than buying an existing home gives you the potential for:
- A brand new, quality home
- No strange quirks or add-ons from the previous owner
- A floor plan that is designed for a modern lifestyle
- A place to live in a welcoming new community, often with plenty of owners in the same demographic as you
- The opportunity to achieve capital growth, even in the short term
The value of land always rises. With house values trend tracking upwards in Sydney (Norwest average values have risen from $1.16 million in 2019 to 1.522 million in early 2024), now is a great time to look for a cost-effective and location-savvy purchase that will definitely feel like it was ‘cheap’ in a few years.