WHY THE WEST IS BEST FOR NEW HOME BUY­ERS

REAL ES­TATE SPE­CIAL

Mt Druitt - St Mary's Standard (East) - - FRONT PAGE - Marissa Ge­or­gopou­los

WESTERN Syd­ney has al­ways been known for its af­ford­abil­ity, but as Syd­ney prices rise, mil­lion-dol­lar sales are be­com­ing ever more com­mon.

Where once the psy­cho­log­i­cal seven-fig­ure bar­rier bought you the best nest in the street, this has changed.

Starr Part­ners CEO Doug Driscoll said de­spite Syd­ney’s over­all boom, west houses were out there for less than $1 mil­lion.

“I look at places like Glen­more Park, and think for the type of house and sub­urb you are get­ting, it is crack­ing value. Ersk­ine Park and St Clair are the same kind of ar­eas, which are not too far away,” Mr Driscoll said.

“You can still get de­cent, mod­ern fam­ily homes for $700,000 to $800,000 in some (west) ar­eas. That doesn’t re­ally ex­ist any­where else.”

He said Fair­field, Liver­pool and Macarthur re­gions had be­come pricier but still held value for buy­ers, with homes on de­cent blocks for less than $1 mil­lion.

Aus­tral, Ce­cil Park, Or­chard Hills, Ross­more and Castlereagh have me­dian house prices above $1.2 mil­lion, ac­cord­ing to the latest CoreLogic RP Data fig­ures.

Many places, in­clud­ing Ab­bots­bury, Chip­ping Nor­ton and Ce­cil Hills are sit­ting well above $700,000 and climb­ing fast, with fig­ures jump­ing more than 12 per cent in 12 months.

Blaxland, Lurnea, Lalor Park, Emu Heights and Maray­ong are sub­urbs with me­di­ans around $550,000, while Black­ett, Wha­lan and Tregear are un­der $400,000.

“Par­ra­matta has come into its own and is fast be­com­ing the sec­ond city; I do not think there are many big­ger mar­kets in Syd­ney at the mo­ment,” Mr Driscoll said, adding that buy­ers could no longer get av­er­age, free­stand­ing houses there for $1 mil­lion.

“It is more two-to-three­bed­room units and town­houses go­ing for that price.”

Me­di­ans in Er­m­ing­ton, Mays Hill and Par­ra­matta have reached $950,000 and above. Smith­field has the area’s cheap­est at $610,000.

Mil­lion-dol­lar house sales have be­come the norm across the greater Syd­ney area, with 302 sub­urbs boast­ing seven-fig­ure me­di­ans ac­cord­ing to CoreLogic RP Data fig­ures. This num­ber has dou­bled since 2010, re­flect­ing a me­te­oric rise. CoreLogic head of re­search Tim Law­less notes that only 13 sub­urbs within 10km of the CBD have house val­ues be­low $1 mil­lion.

“Buy­ing close to the CBD has be­come very dif­fi­cult,” Mr Law­less said. “Syd­ney val­ues are up 75 per cent since 2009, so what you could buy 10 years ago for $1 mil­lion was quite dif­fer­ent.”

Dwelling val­ues are up 48 per cent since the last low point in mid-2012.

“It’s a wake-up call for a home­buyer with $600,000 to see what they can ac­tu­ally get,” Mr Law­less said. “A lot of peo­ple have had their per­cep­tion of a mil­lion-dol­lar prop­erty changed.”

Me­dian value growth of 18.4 per cent over the 12 months to July is the high­est sin­gle year surge since 2002, de­spite com­ing off two years of dou­ble digit growth.

“There are no signs the mar­ket is slow­ing down,” Mr Law­less said. “But Spring will be the big test with list­ing num­bers ris­ing and will prob­a­bly be slower than last year.”

Mr Driscoll said the spring selling sea­son would see a rise in the num­ber of homes for sale, less in­vestors buy- ing and the po­ten­tial re­turn of first-home buy­ers.

“I an­tic­i­pate 20 to 25 per cent more up­lift than this time last year, when we were in a very volatile and un­cer­tain mar­ket,” he said.

“We have had eight to nine months of steady rates and the price growth has been com­pressed.”

Some com­men­ta­tors be­lieve the Syd­ney prop­erty mar­ket is in a bub­ble which will see an in­evitable drop, oth­ers be­lieve the mar­ket is now in a sta­bil­is­ing phase.

NSW Premier Mike Baird told Busi­ness In­sider last week: “I’ve been heart­ened that if you look at the most re­cent num­bers in the past cou­ple of weeks, it does seem to be sta­bil­is­ing.

“If it starts to fall, that’s a mat­ter to wait and see but there’s no doubt that it’s cer­tainly sta­bil­is­ing in the past cou­ple of weeks.”

RK PA RE MO EN GL Marie Pitt Place, Glen­more Park. Sold for $1.05 mil­lion. Five bed­room + study house. Three bath­rooms, two car spa­ces, 783 sq m.

Poin­ciana Pde, Greystanes. Sold for $1.045 mil­lion. Four bed­room + study house. Three bath­rooms, two car spa­ces, 556 sq m.

ES AN ST EY GR

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