Starr Partners’ Greater Western Sydney property outlook for 2012

MEDIA RELEASE
December 2011

Starr Partners’ Greater Western Sydney property outlook for 2012

Region separate to central Sydney

The six booming suburbs to buy into

Off-the-plan sales to grow

Next year will continue to see continued infrastructure growth, new developments and 5-6 per cent in rental yields for Greater Western Sydney, according to Douglas Driscoll, market expert and CEO of Starr Partners, Western Sydney’s largest and longest-running real estate franchise. “Investors will continue to head west, lured by affordable property with high returns and higher stock levels,” he says.

Douglas forecasts three trends for Greater Western Sydney.

Sydney is a tale of two cities

Until now Sydney buyers have pooled Greater Western Sydney into the same market as Sydney, Douglas says. “This perception is beginning to change. Greater Western Sydney cannot be regarded as the same economy as inner Sydney or the northern beaches. The development boom, the buyer and seller mentality here – and hence the property data – is very different from the rest of Sydney.

“We are seeing commercial epicentres emerging here – negating the need for residents to commute to the CBD. New suburbs and shopping districts are appearing, businesses are establishing and settling out here, the M2 motorway is expanding, new and expanded train stations are emerging, and so are large masterplanned developments. No other area in Sydney is seeing that amount of change so quickly.

“Investors are realising it – and their presence in the area is growing. Rental yields have averaged 5-6 per cent here, in comparison to Sydney’s inner west where they are 3-5 per cent. This kind of strong rental yield will continue in 2012, assuming the economy will remain stable.”

Hot suburbs to watch

Infrastructure growth and new developments are indicators of good rental yields and capital growth for those areas. Doug lists the following suburbs as ones to look out for:

The Ponds (west of Kellyville): “This is seeing high quality housing development on a large scale, and is tipped to be an upmarket area. In November, the $8.5m landmark Eastern Playing Fields precinct opened. Nearby, Schofield train station has been relocated and expanded,” Doug says. “In addition, my belief is that the north-west rail link will have to happen, further benefitting these areas.”

Schofields and Riverstone: “A significant amount of land has been released here with quality developments; a major part of the M2 is being widened to three lanes; and a planned Woolworths in Schofields is pointing to the growth of these suburbs,” Doug says.

Oran Park and Edmondson Park: “These are large new suburbs. Edmondson Park is conveniently at the junction of the M7 and M5 corridors and will have a new train station linked to the airport and East Hills lines by 2016,” Doug says.

Pemulwuy: “This new suburb has seen significant sales by our new Pemulwuy office. 2010 saw an 11.5% increase in the median house price, and 2011 a 5.6% increase. In October, median house prices were 8% higher than the median house price for the Holroyd area.”

Off-the-plan sales to grow

Off-the-plan sales are already at a high due to the wave of savvy overseas investors. “Often entire developments are purchased off the plan quickly. That’s where local buyers are missing out,” Douglas says. “Investors overseas know it’s a safer investment here and are also comfortable buying off the plan. Often, by the time a development is completed these investors have made tens of thousands of dollars on their purchase price.

Douglas says, “Local investors are likely to soon change their mentality and realise that off the plan is the way of the future in the Greater West. Developments also offer warranties, making the investments as safe as a second-hand property. The challenge is for local buyers to get in there before overseas investors snap up future developments.”

For more information, contact:

Julia Nekich | The Ideas Suite | (02) 9279 3330 | 0410 796 800 | jnekich@theideassuite.com.au;

Douglas Driscoll | Starr Partners | (02) 8824 3133 | 0410 146 119

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About Starr Partners: Starr Partners is the largest and longest-running Sydney-based real estate franchise group. Spanning Greater Western Sydney, the Starr Partners network comprises 24 offices across the Hills District, Hawkesbury, Nepean, Inner West, South West, Outer West and Central Coast. Headed by CEO Douglas Driscoll, the group remains focused on steady expansion in greater metropolitan Sydney, with an emphasis on growth regions.