28 September, 2009

Home shortage drives premium prices in western Sydney

Property listings in some areas of Western Sydney are down by almost 30 per cent, according RH Compass, Raine & Horne's brand new business support management system.

In Bankstown, figures for August show property listings were down by just under 30 per cent when compared against the three month moving average.

Proprietor of Raine & Horne Bankstown, Robert Spitalieri, said listings had "dried up" as vendors waited for a predicted interest rate rise before the end of the year.

"People are holding off on selling their homes despite increased buyer demand, particularly for home units," Mr Spitalieri said.

"Units in particular are selling well and quickly, often within a week or two of listing. We just sold a unit at 6/479 Chapel Road Bankstown for the full asking price of $259,000 within the first week of listing."

Raine & Horne CEO Angus Raine said historically low interest rates were contributing to Western Sydney's property drought as many homeowners were taking the opportunity to consolidate their financial position.

"Lower interest rates are giving people plenty of breathing space," Mr Raine said.

"Rather than looking to take on more mortgage debt, many home owners are taking advantage of cheaper interest rates to pay off high interest debts such as credit cards and personal loans."

"I also think we'll see people putting their property on the market right through until late December this year as activity in the market entices vendors with similar properties to take the plunge, albeit a bit later than the traditional spring selling period."

Raine & Horne Rouse Hill's Cameron Medcalf said a shortage of stock had been the story all year in his suburb.

In August there were 30 percent fewer homes for sale in Rouse Hill compared to the same period last year. Yet he said buyer demand was strong on the back of a growing population and a shortage of rental property.

Further west, demand for rental property in Blacktown is also driving up prices. The latest statistics from RH Compass show the average price for a Blacktown home rose from $280,000 to $330,000 in the 12 months to 30 August 2009.

Raine & Horne Blacktown proprietor Lorraine Young said the rental market was very strong.

"We just sold a two-bedroom unit for $220,000 and in August last year a unit in the same block was sold for $160,000. The unit will rent for $280 a week so our strong rental market is definitely underpinning themarket. We just need more homes to sell."

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas,Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For more media information contact Angus Raine on (02) 9258 5422 or 0409 920 697, or Alana Drivas, Raine & Horne Marketing Communications, on (02) 9258 5448.