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Property
Published in Western Sydney Business Access | Parramatta Times | Blacktown News | www.westernpropertyguide.com.au
Blacktown tops investment buying
Demand for buyer’s agents soars
INVESTMENT | DALLAS SHERRINGHAM
BLACKTOWN local government area has surprisingly been rated the best region for investors buying houses and units in the Greater Sydney Region.
A leading real estate internet sales site placed the houses in the Blacktown LGA top of the tree in a recent survey of the 50 most popular investment property regions.
In 2021, a total of 482 investment houses have sold in the 2148 postcode representing a 10-year growth rate in median house prices of 109%.
Th e rental yield was 2.9% this year and the rental demand annual growth averaged 3.3% over the 10-year period.
Th e Kellyville region covering the 2158 postcode was fourth on the list with 413 investment houses purchased, representing an annual growth rate over the 10-year period of 111.4%.
Penrith and Liverpool were close behind placing sixth and seventh in the number of sales.
In Penrith, units were the most popular type of investor property with 333 sold this year, representing a growth rate of 94.3%.
Liverpool units were the most popular investment properties in the 2170 postcode area with a 65% increase over the period and 302 sales this year.
Blacktown units also featured in the top 10 list of suburbs att racting investors with 250 sales in 2021, a 10-year increase of 79.5%.
Riverstone 239 house sales, Harrington Park 235, Cranebrook 225 and St Clair 231 were all in the top 15 and rose in value between 101% and 105% over the decade.
At the other end of the scale, Kingswood, North Richmond and Cabramatt a were 45th, 47th and 48th and were less popular with investors. Moorebank was 50th with 118 house sales.
However, it had a 98% growth rate over the period which means it is still a very sold area for investing.
Leading real estate agent John McGrath said:” We’ve never had a year quite like this one’.
“Investor activity has been increasing every month since the start of 2021, while fi rst home buying began declining in February and continued to do so for three consecutive months,” Mr McGrath said in the Real Estate Conversation.
Activity dropping off a bit
“In January, investor loans represented 23% of the total loans market–a record low. Th ey have since gone up to 28%. Th is is below the long-term average since 2002 of 36%.
“Conversely, fi rst home buyer loans in January represented 25% of the market and this has now gone down to 21%. Th is is still above the long-term average of 16%, so activity might be dropping off a bit but it still remains high.
“Th is is great news for sellers of sub$1.5m houses and units. Any lost demand from fi rst home buyers is being more than off set by new activity from investors and this will keep prices growing for now.”
Mr McGrath said this was important because the unit market was most at risk of feeling the eff ects of negative population growth if demand from local fi rst home buyers and investors ran out before the international border opens. He said was expected by the Federal Government in mid-2022.
“Although the COVID boom has been going since last year, investors are only now gett ing in on the action. Th ey’ve sat on the sidelines mainly due to the rental moratoriums and uncertainty. No one wants to make big fi nancial decisions when their job might be at risk.“
“However, the general economic outlook for the country is much bett er now, despite what is happening in Sydney with the Delta variant now. Most investors now know whether they have job security or not, so the path has been cleared to invest if they can.
“Th e investment landscape looks great,” he said.
Australian home values lift ed 12.4% across the combined capital cities in FY21, and a remarkable 17.7% across the combined regions.
Th e average national weekly rent went up 6.6% in FY21 according to CoreLogic, which was the fastest pace since 2009. Growth was best in the regions at 11.3% vs 5% in the capitals.
Sources: McGrath RE report, www.realestate.com.au
Jacque Parker. BUYING | PIA LENARDUZZI
THE COVID lockdown may have crippled bujsinesses in Western Sydney, but local buyer’s agents say they have never been busier, with demand for their services increasing throughout the pandemic.
Latest data from CoreLogic shows that property values rose by 1.5% for the month of August. Th is rise was higher than average, but the slowest monthly rise since January.
“Lockdowns are having a clear impact on consumer sentiment, however to date the restrictions have resulted in falling advertised listings and, to a lesser extent, fewer home sales, with less impact on price growth momentum,” CoreLogic’s Research Director, Tim Lawless said.
“It’s likely the ongoing shortage of properties available for purchase is central to the upwards pressure on housing.”
Jacque Parker, Director of House Search Australia, said buyer’s agents are making it easier for prospective buyers in COVID hotspots to secure homes in a market where stock is limited.
“Th is latest lockdown hasn’t had a huge impact on the market, given there is still strong demand,” Ms Parker said.
“Not as many vendors are listing, which is the biggest change that we’ve noticed.
“We are defi nitely giving our clients the edge, particularly those that live in local government areas (LGA) of concern, where their movement is limited.
“We can get out and inspect a property on their behalf, which is saving them a lot of time and helping them secure their home off -market or at online auctions.”
According to Domain, Sydney auction clearance rates in August remained above 80%, compared to 61% this time last year.
“In Western Sydney, particularly the Hills District, a free-standing house with decent land size is still important to buyers, as well good school catchment areas and proximity to transport,” Ms Parker said.
“Th ere are still opportunities for fi rst home buyers to get into the market, but for free standing houses under the $1million mark, we’re seeing people searching further afi eld out of Sydney and considering other areas, including the Blue Mountains and Central Coast.”
