Middle ring suburbs in Australia set to boom

An increasing number of price-sensitive home buyers snapping up properties in the middle ring and ignoring prestige areas. Despite strong inner-city sales growth in Sydney and Melbourne, an analysis of days-on-market figures revealed a very different buyer profile emerging.

According to The Australian Financial Review, in Sydney, middle ring suburbs Newington and Croydon are both enjoying an average of less than 50 days on market. Burwood and Ashburton, suburbs in Melbourne, are also in the same situation. All four suburbs are seeing vendor discounting of less than 4%.

On the other hand, premium suburbs like Coogee in Sydney and Brighton in Melbourne are experiencing a greater number of days on market (101 and 90 respectively) and higher vendor discounting (10.2% and 13.5% respectively).

The pattern is repeated in all capital cities.

RP Data research analyst Cameron Kusher said that although buyers still wanted to be close to the city, good transport lines would lure them to more affordable areas.