Weekly News Recap
- Sydney’s Northwest, West, and Southwest Remain Top Choices for First Home Buyers
- New South Wales Appoints First Rental Commissioner, Potentially Leading to Major Housing Market Reforms
- Skyrocketing House Prices in Western Sydney! Several Suburbs Surpass $4 Million Mark!
Sydney’s Northwest, West, and Southwest Remain Top Choices for First Home Buyers
According to the latest quarterly real estate market data from InfoTrack, the top ten areas in Sydney where first home buyers are entering the market have been announced, with some areas making their debut on the list.
Based on data from April to June, Arncliffe in the South region and Waterloo in the Inner City region have made their first appearance on the list and have shown impressive performance in terms of first home buyer sales. Lee Bailie, the Australian Real Estate Director at InfoTrack, stated that the latest data indicates that Sydney’s Northwest, West, and Southwest continue to be popular choices for first home buyers. The 2205 postcode area, including Arncliffe, Turrella, and Wolli Creek, ranked sixth on the list.
The growth in interest in this city area is astonishing, with sales volume in June almost quadrupling that of January. Approximately 94% of the properties listed within this postcode area are priced between $500,000 and $1 million, with properties ranging from $600,000 to $700,000 being the most popular.
Among the highly favored city areas, Waterloo/Zetland ranked tenth.
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New South Wales Appoints First Rental Commissioner, Potentially Leading to Major Housing Market Reforms
According to a report from The Australian, New South Wales has appointed its first-ever Rental Commissioner to regulate housing market reforms and improve the tenant environment, particularly amidst record-high rental vacancy rates and rent increases. The newly appointed Rental Commissioner, Trina Jones, will be responsible for investigating systemic issues in the Sydney rental market, including rental affordability and supply conditions, and formulating policies such as advocating for longer-term lease agreements.
The appointment of Trina Jones was announced by NSW Premier Chris Minns on Monday, who highlighted the systemic issues faced by tenants amidst increasing cost of living. The appointment of a Rental Commissioner is an important first step in addressing these problems. Every person who rents in New South Wales knows the anxiety and challenges of finding suitable housing, especially with rising rents and increasing cost of living. While the long-standing issues in the rental market cannot be resolved overnight, we have taken a starting point and are determined to do more.
It is estimated that approximately 2 million people in New South Wales live in rental properties. The Australian Labor Party, led by Chris Minns, pledged to reform the rental market in the previous state government elections. A discussion paper released by the NSW government last week mentioned the possibility of requiring landlords to justify rent increases exceeding inflation and potentially banning multiple rent increases within a year, along with the creation of a public database for rental increases.
Trina Jones previously served as the CEO of Homelessness NSW and has proposed solutions to address homelessness in the city of Sydney. In her new role, she aims to improve the fairness of the rental market and safeguard tenant rights. She looks forward to working closely with the government, industry stakeholders, tenants, and landlords to address housing issues.
Trina Jones will also engage in consultations with the government and various rental-related parties for policy reforms, including the prohibition of no-grounds evictions, the introduction of portable rental bonds, and facilitating easier pet ownership for tenants. In June, the rental vacancy rates in Sydney showed some improvement. In April this year, the rental vacancy rate in Sydney reached its highest level in a decade. According to a report from PropTrack, the rental vacancy rate in Sydney for June was 1.73%.
Tim McKibbin, CEO of the Real Estate Institute of New South Wales, stated that despite an increase in rental demand, the supply has not significantly increased, making Sydney the most expensive rental market in Australia for tenants. This is a concerning situation, with tight rental vacancy rates and limited rental supply, which has also reduced the attractiveness of residential properties as investments. To address the rental crisis, the supply issue needs to be addressed first.
Skyrocketing House Prices in Western Sydney! Several Suburbs Surpass $4 Million Mark!
House prices in Western Sydney skyrocket to new heights! In some areas, homes worth millions of dollars have become the new norm, with median prices exceeding $4 million in 19 suburbs.
The government has made substantial investments in infrastructure, including the new Western Sydney Airport, Motorway 12, and Sydney Metro West, which have driven a significant surge in property prices across the entire region.
According to exclusive valuation data from PropTrack, Rossmore and Kemps Creek, located near the new airport, are now the most expensive suburbs in Greater Western Sydney. The median house prices in these two suburbs have surpassed $4 million, while nearby suburbs like Bringelly and Orchard Hills have prices exceeding $3 million. PropTrack data also reveals that 13 other suburbs in Greater Western Sydney have median house prices exceeding $2 million.
Angus Moore, an economist at PropTrack, attributes the increased popularity of certain western areas to the improved infrastructure. Despite recent price increases and rising interest rates, these areas remain much more affordable compared to many eastern suburbs, making them highly attractive to buyers. Moore states, “House prices across Western Sydney have remained strong and experienced positive growth.” Over the past few years, the entire western region has seen significant value appreciation.
Terry Ryder, Managing Director of Hotspotting, declares that Western Sydney is now one of Australia’s largest and most robust economies. He explains, “It has been developing in this direction for many years, with the new airport, commercial/industrial precincts, and other surrounding factors providing significant additional impetus. People desire to live closer to their workplaces, which has influenced the residential property market.”
The region already boasts a substantial number of employment and industrial precincts, large warehouses and logistics companies, university campuses, and hospitals. The development of a commercial/industrial precinct around the new Western Sydney Airport is expected, with individual projects valued between $500 million and $1 billion. This further dispels the misconception that “property must be located near the central business district to have value.”
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