Western Sydney Property Market: Q3 Update

Interest rate cuts and the relaxation of credit policies have boosted prospects for real estate in Western Sydney. With many developments taking place in locations like Marsden Park Elara investors and buyers are starting to flock back to Western Sydney.

According to property market observers, low-interest rates and relaxation of home loan serviceability criteria are the major reasons for the recent property market upswing in the area. Analysts note that there is an increased number of buyers at open homes and auctions.

Marsden Park Elara

Which are the preferred suburbs?

Western Sydney suburbs such as St Marys, Riverstone, Marsden park Elara, Jordan Springs, Oxley Park, Ropes Crossing, Blacktown, Eastern Creek, Kellyville and Kellyville Ridge have attracted families and investors keen to secure a home or investment. That prices are significantly lower than the price peak a few years ago have also helped.

For instance, on average, a unit in the St Marys will cost $353 per week in terms of mortgage whereas the rent for the period is $328. That means that for an additional $25 you can actually buy the unit. Likewise in Liverpool, the average mortgage amount for a unit is $424 per week while the rent is $380. If you add $44 to your weekly budget you can buy the property.

How’s the rent scenario?

Thanks to increased supply and slow wage growth, rents in the Western Sydney region have come down. Rents saw the biggest annual fall in more than a decade, with a drop of up to a quarter across the suburbs. This was more evident in western and south-western Sydney regions.

The fall in rent was such that nine of the 10 most affordable suburbs for houses and units in Western Sydney witnessed it. According to reports, you could find medians as low as $310 for houses in Willmot and $290 for units in Carramar.

Likewise, the Median rent for a house in Parramatta is $495 PW and for a unit, it is $460 PW. The figures for Jordan Springs are $530 PW and $360 PW respectively.

Why is Western Sydney an attractive option?

Compared to other areas, Western Sydney has strong population growth, access to jobs, and relatively lower levels of unemployment. Areas such as Marsden Park and St Marys are starting to see plenty of new developments. In addition to this most of the suburbs have good transport connections to CBD and other areas around Sydney. All this make Western Sydney a preferred location to live.

Property values – the current scenario

Experts believe that houses have regained almost 1/3 in value and units roughly 1/5 th at present. Low prices are starting to become a thing of the past as the market is now regaining lost ground.

A fall in listings, higher auction clearance rates and a rise in asking prices, all suggest that western Sydney suburbs are about to witness another housing boom.

Conclusion:

The gap between rental and mortgage repayment had narrowed in several Western Sydney locations such as Marsden Park Elara due to price correction and a drop in interest rates. While this had allowed many to buy their dream homes/apartments instead of renting, the prices now are slowly starting to rise.

Even so, it might not be too late to jump on the bandwagon as in some cases the repayments can be cheaper or equal to rentals. And in some cases, by paying marginally higher, you could still own the dream property in one of the Western Sydney suburbs.