WHY THE WEST IS BEST FOR NEW HOME BUYERS
REAL ESTATE SPECIAL
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