House hunters have been given a once in a decade opportunity to get a better home deal in Sydney’s middle-ring suburbs.
The Daily Telegraph revealed demand from property seekers have fallen in many of the suburbs within a 10-30km radius of the Sydney CBD over the past year.
This has coincide with a high rise in the supply of properties for sale, especially in the high-rise unit market. The result is that home buyers have more properties to choose from and less competition for sales from house hunters that have allowed them to negotiate prices down.
Conditions have not been this favourable for buyers since the GFC started nearly 10 years ago.
The data from realestate.com.au showed home buyers that it’s getting easier to buy a home. We are particularly in a commanding position to negotiate better deals in the suburbs of Mays Hill, near Parramatta, and Sydney Olympic Park.
Listings in both suburbs were in high supply due to rampant home building in the area and attracted the least amount of clicks from Sydney buyers on realestate.com.au.
Values in areas with good transport usually hold up well over time, there are lots of homes available for buyers right now that they don’t have to offer high prices to get the best.
Other areas where housing demand fell over the past year included Canterbury, Holroyd, Bankstown enclave Potts Hill, Olympic Park neighbours Homebush and Mortlake.
Houses remain in greater demand than units in many areas.
Areas within a 10km radius of the CBD, demand was lowest in construction hot spots Wolli Creek and Zetland.
Median unit prices in most of these suburbs failed to grow or fell over the past year.
The biggest fall was in Mortlake, where the median dropped 6 per cent or about $58,000, to hit $897,500, according to CoreLogic.
Holroyd’s median unit price fell 3.5 per cent or $20,000. In Zetland the fall was 2.8 per cent or roughly $25,000 and in Yagoona it was 2.5 per cent or $14,000.
Unit values in Sydney as a whole grew 3 per cent over the same period.
Home buyers should continue to get good home deals for some time due to Sydney’s property market moving from a “frenzy” to “sanity”.
Last year it was nearly impossible to get into the market but right now it is probably one of the best times there’s ever been to buy a home in Sydney.
One of the factors preventing prices from escalating out of control again was increased land availability and growing competition among tradespeople for building work. In recent years it has been extremely difficult to get quality tradespeople to build homes and that pushed up prices.
As recently as a year ago, if you were building a home you’d be paying $2.50 per brick. Now it’s $1.80. It’s the same bricks, same bricklayer. There’s just more tradies around so they have to offer better prices to stay competitive.