Multiple suburbs across Sydney have been identified as areas that are potential ‘safe-havens’
that should be well insulated against the fallout from the COVID-19 crisis.
Ripehouse Advisory recently put together a whitepaper entitled, COVID-19 V Australian Property Report that assessed a number of areas that should maintain their values over the coming months.
The top 10 list of suburbs in NSW includes Avalon Beach, Wheeler Heights, North Curl Curl, Bayview, Beaconsfield, Wollstonecraft, Croydon Park, Waterloo, Petersham, and Dulwich Hill.
More than 145 national property experts participated in the study, including Real Estate Institute of NSW (REINSW) president Leanne Pilkington, property lecturer Peter Koulizos, economist Dr Maria Yanotto, and buyers agent Jay Anderson.
The rest of the country did not fare as well as NSW, with the ACT having 10 suburbs; Western Australia and the Northern Territory both having six; South Australia, Victoria and Queensland each had just one suburb on the list.
Ripehouse Advisory’s CEO Jacob Field said criteria used to identify the suburbs that would be most likely to be insulated from a COVID-19 impact included those that had highly diverse economies, a mixture of property types and price points, diverse employment mixes, low vacancy rates and steady rents, and low new housing supply in the approval pipelines.
“We have noticed a distinct bias towards more established, diverse middle and inner-ring suburbs,” he said.
“Diversity lowers risk. Lower risk helps provide a floor to value in times of uncertainty.”
Mr Field also made the point that both interstate and international migration had been reduced to zero as the nation’s borders closed, while many states did the same.
“It is one of the last things that will be switched back on again, and even if the numbers (of infections) get low we’ve still got to keep interstate and international migration low.”
This would significantly impact sales of new builds, in particular, Mr Field said.
“When you take population growth down to low or zero, you rely on births and deaths and nothing else,” he said.
“There is not a huge amount of new builds in the pipeline in NSW so that low supply will help insulate the market.”
Other NSW suburbs that have been considered safe havens include Ashfield, Bilgola Plateau, Camperdown, Crows Nest, Fairlight, Forestville, Greenwich, Hurlstone Park, Kenthurst, Kirribilli, Lane Cove, Leichhardt, Lewisham, McMahons Point, Mona Vale, Neutral Bay, Newtown, North Balgowlah, North Curl Curl, Potts Point, and St Leonards.
Complete and original article written by Amanda Sheppeard published in The Daily Telegraph: COVID-19: NSW suburbs lead national list of safe haven property locations