Western Sydney has turned into a battleground on auction day. Listings are at record lows and demand is rising alongside prices. It’s caused buyers to compete for every square foot where in some cases thousands of buyers have shown up for just a dozen listings.
While Greater Sydney dwelling values have risen 5.8% over last year, some areas in Western Sydney, like Fairfield, have grown by as much as 11.2%. This has been attributed to affordability pressures pushing more buyers away from the inner suburbs.
Both first home buyers and investors are attracted to the relative affordability and price growth of these suburbs.
Leonay was the top performing suburb with enquiries rising 152%, followed by Emu Plains and Glen Alpine at 103% and 98% respectively. St Marys had an average of 159 enquiries per listing, driven by the completion of the Western Sydney Airport.
This demand will continue for the foreseeable future as population projections add nearly 59,000 residents into Western Sydney each year until 2041. Under this assumption, it would require 25,636 new homes annually, but so far there are only 5,484 dwellings currently under construction. 82,000 sit in the development pipeline.
Without a lift in construction this trend will continue, placing upward pressure on prices.
In April, 74 houses were available in Glenmore Park and 4,321 buyers were interested, according to PropTrack data. That’s 58.4 interested buyers for each listing meaning homes are spending an average of just 24 days on the market
Things are even more competitive in Jamisontown where homes sell in 23 days with just seven dwellings on the market. Penrith had 2,200 buyers with just 28 houses in the last month.
What does this mean for you? It means that Sydney continues to be a hyper-competitive market that is difficult to traverse alone.
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