Sydney’s west continues to be a destination point for first home buyers and investors alike as inner city prices have ballooned. Sales volumes have decreased dramatically over the past three years in many western suburbs, which has only added to the significant rise in median house and unit prices we have seen over this period. However, there are still affordable entry points for those willing to go a little further out, while a projected slowdown of the market is already being confirmed by a number of decreases in median home prices across western Sydney. Here are the stats for some of the area’s potential destination points for investors.
Merrylands saw a 9.5 per cent increase in median sale prices for houses in 2017 (from $830,050 to $908,500) and a 33 per cent increase over three years. This shows a continuity of growth over the three years, compared to other areas where growth has ballooned only to have faltered in 2017.
Median sale prices of units in Merrylands have seen a 5.6 per cent increase over the year, from $470,150 to $496,333 and a 22.6 per cent increase over three years. Sale volume of units has decreased dramatically over three years, by -59.9 per cent.
Cabramatta saw a 23.9 per cent increase for median house prices over the past year, from $733,000 to $908,000 and a 51.3 per cent increase over three years. Units have increased 26.2 per cent over three years but only 1.5 per cent in the past year, indicating a dramatic shift in demand for units, despite sale volume this year decreasing by -48.3 per cent.
Bossley Park saw an increase in median sale price for houses in the past year (12.9 per cent) from $766,000 to $865,000 and 43.9 per cent over three years, showing a slight decline over the past year. Units decreased by -16.1 per cent over the past year, despite a massive decline in the number of sales (-71.4 per cent).
In the past year, median sale prices for houses increased 13.2 per cent from $662,500 to $750,000 and increased 39.4 per cent over three years, indicating steady growth over the three years. Sale volume decreased -55.5 per cent over these three years, which no doubt increased demand as shown through the rise in value. The rise in value of units in Blacktown dropped off in 2017, with a rise of only 2.7 per cent in this year a drop in the ocean compared to the 25 per cent increase in median sale price for units over three years.
With a median sale price for houses now at $1,320,000, up 12.1 per cent in 2017 from $1,177,500, Lidcombe is a good option for investors. Unit prices are expected to plateau in the inner suburbs of Sydney in 2018, as supply increases, which was reflected in just a 2.3 per cent increase in the median sale price of units in Lidcombe in 2017 (from $655,000 to $670,000). Sale volume for both types of property decreased significantly over three years, -48.9 per cent for units and 49.4 per cent for houses.
Median sale prices for houses in Bankstown increased 11.5 per cent in 2017, from $902,500 to $1,006,000. This was 11.5 per cent out of a 39.7 per cent increase in three years, demonstrating a slight slowdown growth in 2017.
The median sale price of units dropped of somewhat in 2017, rising by only 4 per cent, from $495,000 to $515,000, compared to a 23.9 per cent increase over three years.
Sale volumes of houses in Glenmore Park dropped by -45.6 per cent over three years, with a -19.4 per cent drop in 2017 accounting for a significant portion of this. This contributed to the 39.4 per cent increase in median sales values for houses over three years, and the 9.9 per cent increase in 2017, from $710,000 to $780,000. The relative affordability of houses in Glenmore Park make it a key destination point for first home buyers and investors alike.
The historical suburb of Penrith remains a strong entry point for first home buyers and investors, with the median sale price of houses at $685,500. This is a 10.6 per cent increase since this time last year, while prices have increased 45.9 per cent over three years. Units have also seen a significant rise of 33.3 per cent over three years in median sales prices.
The sale volume of both houses and units in Penrith has decreased dramatically over three years, with units decreasing -43.2 per cent and houses -56.1 per cent.
On the far edges of Western Sydney, the hilly and green suburb of Glenbrook has seen relatively mild growth compared to other areas of Sydney. In three years the median sale price of houses increased 28.9 per cent, while sale volumes decreased -41.7 per cent. However, in 2017 the median sale price decreased by 2.8 per cent, from $920,551 to $895,100. Units in the area only increased in the median sale price by 2.0 per cent, from $617,500 to $630,000.
For one of the most western suburbs, a high median house price of $895,100 is indicative of the competitive Sydney market but it may be worth watching Glenbrook as a possible investment destination as prices potentially decrease a little further over 2018.
Cranebrook remains highly affordable, with the median sale price for houses increasing 8.2 per cent in 2017 from $610,000 to $660,000. The suburb shows considerable promise as an investment option as median sale prices for houses have increased 37.8 per cent in three years and 37.4 per cent for units. The median sale price for units is now at $520,000 which is up 8.1 per cent since this time last year.