Investors and first home buyers hammer real estate markets in Sydney’s west
Media release - 19th September, 2013
Buyers on the move in Liverpool, St Marys and Penrith
- 10 Wagstaff Street, Edensor Park beats reserve price by over $100,000
- Raine & Horne St Marys sold 63 Canberra Street, Oxley Park at auction for $40,000 above reserve
- 58 Mamre Road, St Marys was under contract within 48 hours of listing
- Off the plan properties at 117-119 Victoria Street Werrington are selling for $12,000 more than in June, according to Raine & Horne Penrith
Booming property sales are not restricted to Sydney’s inner ring postcodes, with Raine & Horne Liverpool recently selling at auction an unfinished, four bedroom home, at 10 Wagstaff Street, Edensor Park, for more than $100,000 above its auction reserve price.
“It’s clear the surge in real estate activity has spread to Sydney’s outer ring suburbs, with our offices in Liverpool, St Marys and Penrith reporting that first home buyers and investors are snapping up the shrinking pool of homes for sale,” says Angus Raine, Executive Chairman & CEO of Raine & Horne.
“The auction at 10 Wagstaff Street, for instance, attracted a staggering 34 registered bidders, which is an amazing result, as six or seven serious bidders are usually representative of a very healthy market.”
Listing agent and Co-Principal of Raine & Horne Liverpool, Vince Labbozzetta, said more than 100 people attended the auction of the Edensor Park home, which was a mortgagee-in-possession, underlining the enthusiastic interest in bricks and mortar in western Sydney.
“Beating the reserve by more than $100,000 is a remarkable result when you consider the median price for a four bedroom home in Edensor Park is around $500,000,” says Mr Labbozzetta, who attributes the successful sale to the mobilisation of buyers in the Liverpool region, as a consequence of lower interest rates.
“At the same time, there are not enough homes for sale, so if a property is well-priced, has development or renovation potential, it will attract plenty of attention and secure a decent price,” he says.
In another example of the strength of the auction market in Sydney’s west, Raine & Horne St Marys sold 63 Canberra Street, Oxley Park for $40,000 above reserve.
“This was a well-presented three bedroom home with a double lockup garage, which is located on a generous 860sqm block of land zoned 2c,” says Vince Turner, Principal of Raine & Horne St Marys.
“The market is hotting up because interest rates are low and rental returns are generating healthy gross returns around 5%.
“Properties such as 63 Canberra Street, Oxley Park are attracting first home buyers, investors, self-managed super funds and those looking for good size blocks that can easily house a separate granny flat.”
Mr Turner advises that many properties in St Marys and surrounding suburbs are selling within five days, and often by about $15,000 to $20,000 above expectations.
For example, a three bedroom home at 58 Mamre Road, St Marys was under contract within 48 hours of listing.
“It listed for sale at $335,000 and sold for $350,000 in two days,” says Mr Turner.
At the foot of the Blue Mountains, Raine & Horne Penrith’s Gary Rossetto reports that the market is very strong under $400,000, with new apartments and townhouses jumping in value by about $12,000 in the past three months.
“In August we sold 24 properties, including 12 townhouses off the plan,” says Mr Rossetto, who recently listed a number of three-bedroom townhouses at 117-119 Victoria Street Werrington at $349,000 each.
“We sold similar three bedroom townhouses in the same street off the plan for $337,000 just three months ago.”
“These are still great investments as they’ll rent for $420 to $440 a week, and as they’ll be brand new, it will be possible to claim thousands of dollars in depreciation.”
Older entry-level three bedroom brick veneer homes have also jumped in value by $30,000 since June 2013, with very few now available for less than $400,000, according to Mr Rossetto.
“We have a shortage of these basic homes as the demand from buyers and investors has kicked into a higher gear,” says Mr Rossetto.
“Investors are descending on Penrith in droves as property is still affordable, while they can lock into lower interest rates.
“At the same time, rental yields above 5% gross are possible in Penrith, which are more than enough to cover mortgage repayments.”
For further media information contact:
Angus Raine, CEO, Raine & Horne on 0409 920 697
Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400