Western Sydney on the verge of further expansion as prices soar
Significant growth is tipped for Western Sydney, driven by low interest rates, new infrastructure and confident consumers, a real estate expert has said.
The mid-February vaccine roll-out announcement has delivered a much-needed confidence boost to Western Sydney’s property market, boosting values by an average of 10 per cent, Raine & Horne’s Peter Ly said.
In fact, open homes are generating an increasing number of interest, with 20 prospective buyers said to have visited each inspection since February. In Liverpool alone properties are receiving up to 400 bids from competing buyers.
“We have plenty of cashed-up empty nesters moving to this region from the Inner West,” Mr Ly, director for Cabramatta, Canley Heights, Hoxton Park and Green Valley, said.
“They have a tidy nest egg to play with and are following their adult children who have moved to Liverpool and surrounding suburbs to take advantage of our real estate affordability.”
Further to this, the price boost has helped owners that purchased in January in Cabramatta and surrounding suburbs pocket an extra $50,000 in capital gains.
In fact, Canley Heights broke the $1 million barrier for the first time in March.
Looking ahead, the agent expects the rate of growth to be impacted by a lack of housing stock.
“The issue now is that most of our properties have been sold and there aren’t enough listings to meet demand,” Mr Ly said.
But it’s not all bad news.
“To avoid missing out, more buyers are starting to consider apartments. This activity should help drive up apartment prices five to eight per cent by the end of 2021,” Mr Ly explained.
“Consequently, vendors considering the sale of a property in Cabramatta, Canley Heights, Hoxton Park and Green Valley will achieve excellent prices and very short days on market.”
Infrastructural boost
New infrastructure – particularly the Western Sydney International (Nancy Bird Walton) Airport and the Sydney Metro railway – is also expected to support the need for increased demand in coming years.
In fact, properties in St Marys, Mount Druitt, Oxley Park and Kingswood have already been selling for $40,000 to $50,000 above expectations, Raine & Horne St Marys agent Tom Turner said.
“Low-interest rates, the hype about the region’s prices, and the impact of the airport are driving demand as buyers have a fear of missing out,” said Mr Turner.
“The airport has been attracting buyer attention for some years now, but there has been a massive injection in our region’s infrastructure such as the Sydney Metro railway. This railway link will make it faster to get a train from St Marys to North Sydney than Parramatta to North Sydney.”
Freight powerhouse Pacific National’s decision to shift its hub Port Botany to St Marys, combined with Amazon’s nearby warehouse, is also seen to boost industry confidence.
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