Australia Back to Real Estate News Homepage to RSS for this country

AU Property News

AU Sellers win big out west

Property Here - Tuesday, July 30, 2013

Share to:

MT Druitt has emerged as a new hotspot in the Sydney property market, after a house sold for $780,000 - smashing the previous suburb record of $569,950, set in May.

Long considered an entry point for homeowners, the suburb has emerged as a hotspot for multiple buyer types. The record sale more than doubles the suburb's median price of $355,000 and sets a new benchmark for quality local properties, according to Laing + Simmons Mt Druitt licensee Basle Nahas.

"This house was spectacular,'' he said. "It was built very elegantly and that's why we got such a great price. A lot of buyers wanted it but just couldn't afford it.''

The five-bedroom home at 41 Wehlow St was built just two years ago on a 1012sq m block and boasts two ensuites, a formal lounge and dining room, three car garage and study.

"The record has raised the bar in terms of what vendors can expect for top end properties,'' Mr Nahas said.

"There are typically no sales above $550,000 in Mt Druitt, but the fact that older houses are also going up in price, means a top end market is now a reality.''

Mr Nahas said average houses on decent blocks are going for around $430,000, up from $380,000 12 months ago.

"Every month prices are going up more because there are too many buyers.

"Whenever one sells, the next will sell for a bit more.''

Demand for property is far outstripping supply across the entire greater Sydney area, but Mt Druitt is under three times the pressure. Families want to buy because it is affordable and interest rates are low, while two different types of investor have entered the market, looking for high yields at a low purchase base. Buyer's agent Nathan Birch, of B Invested, has a number of investment properties in Mt Druitt. He believes they offer a rare mix of price growth potential and high rental yield.

"Capital gains are the best in affordable areas,'' he said.

"A $1 million property in Mosman will not double in value any time soon, but if you invested $1 million in multiple Mt Druitt properties, the values would double much quicker. There is more demand for rental properties than what is available, so the returns are good.''

Read more: