AU Auctions take off out west
Property Here - Monday, June 10, 2013
SYDNEY'S severe property supply shortage has spread to the outer western suburbs, where frustrated buyers are paying up to $80,000 above the price guide for average family homes at auction.
Houses in Penrith and surrounding suburbs are going under the hammer as agents convince vendors to cash in on a market where desperate buyers are prepared to do what it takes to put a roof over their heads.
"Five years ago, there were no auctions in Penrith,'' Paul Wallace of Property Central said.
"It was a 'city' thing. In the last two years, we've taken around 125 properties to auction, 60 per cent of which have sold above reserve.''
Two big recent results were in Emu Plains, where one house with a guide of $399,000-plus sold for $480,000, while another at $499,000-plus sold for $530,000.
In both cases, the price was pushed up by competitive bidders.
"The price guide is the most important thing,'' Mr Wallace said.
"If people see value, it generates competition and we see a good end result.''
Ray Fayad, of Laing + Simmons Granville, sold a house at Pendle Hill for $626,000 - more than $50,000 above reserve.
"A year ago I would have put a guide of $530,000 on that property,'' Mr Fayad said.
"In this market, sales and rentals are both strong, rather than just one or the other. First-home buyers and investors want to secure something now, because they think prices will rise again.''
Experts said a general shortage of available stock was pushing prices up.
"There are certainly more buyers and less listings in the west than 12 months ago,'' SQM Research managing director Louis Christopher said.
"In April, there were 8856 houses listed in Sydney's west. The April before, there were 9587,'' he said.
"In August 2008, when the Sydney market was in downturn, there were 16,800 properties listed. That is twice as many as now, with a fraction of the potential buyers.''
Auctioneer Charles Baynie, of Real Success Group, said big government spending on western corridor infrastructure projects, such as widening of the M4 and M2 freeways and the $45 million western Sydney parklands development, was also a factor.
"There's so much happening in the area and people are moving there,'' he said.
David and Dani Coghlan decided to take their South Penrith house to auction. They advertised their property for a June 19 auction and have been "inundated with offers''.
"People are just getting used to auctions out our way; it's not like the inner west or the city. They generate plenty of buzz,'' Mr Coghlan said.
Shane Cook recently bought a house in Emu Plains at auction with his wife, Elaine.
"I had a figure in mind and ended up going above that, but at the end of the day, we needed a house,'' Mr Cook said.
"I was surprised at how much competition there was on the day.''
Read more: http://www.news.com.au/realestate/selling/auctions-take-off-out-west/story-fndbawks-1226661171076#ixzz2WI7RB05b