Western Sydney provides most options in the sub $500,000 price range: HTW residential

Western Sydney provides most options in the sub $500,000 price range: HTW residential
Western Sydney provides most options in the sub $500,000 price range: HTW residential

The sub $500,000 price point in the wider Sydney metropolitan has been an ever-diminishing market, according to the latest Herron Todd White (HTW) residential report.

But there is now more opportunity, the valuation firm said. 

It took a look at the various options across the land for investing $500,000.

The report suggests that as values decreased, the number of properties meeting this criteria reduced each year.

In the past two years however, the wider market has contracted and we now have more options in play in this market.

When buying property at this price point, purchasers will still have to sacrifice in some aspect, be it location, commute time, accommodation or the overall condition and features they desire.

"It should come as no surprise that western Sydney provides buyers with the most options in the sub-$500,000 price range, however there are still some options available in most parts of Sydney," the report said.

"Whilst these may be restricted to units, a number of these areas are now seeing the entry point for houses at well below $1 million, something that may not have been conceivable a year or two ago.

"Parramatta provides two major options for buyers with $500,000 or less to spend. You can pick up a semi-modern, one-bedroom, one-bathroom unit or an older two-bedroom, one-bathroom unit." 

A recent example is a one-bedroom unit at 802/138-140 Church Street, Parramatta (pictured below) selling for $488,888 on level eight in the Escen development.

This is a late 2000s built development with common pool, sauna and gym and within close proximity of the CBD and rail.

Western Sydney provides most options in the sub 0,000 price range: HTW residential

"Further west in Penrith, you have the option of a modern two-bedroom, two-bathroom unit or an early 2000s three-bedroom townhouse for sub-$500,000," the report noted.

Given the wider market cooling over the past 12 to 18 months, detached houses in Penrith are now becoming available for sub-$500,000.

These properties are generally in fair condition with irregular blocks or located on busy roads but provide an entry point for buyers wanting a detached dwelling on circa 600 square metres blocks.

With some smart renovations, these houses could prove to be a savvy buy in the long term.

A recent example of this is a neat brick dwelling selling for $480,000 in March.

Set on 556 square metre allotment, the family house at 53 Glebe Place, Penrith (pictured below) comprises three bedrooms, separate kitchen and living areas, and large bathroom.

Externally, the property is neat but is prime for updating internally.

It's only minutes to local schools, trains and public transport. 

Western Sydney provides most options in the sub 0,000 price range: HTW residential

West Ryde is close to the geographical centre of Sydney and doesn’t usually feature in this topic, but with the downturn over the past 12 to 18 months, there are now more opportunities for investors and first home buyers with older one-bedroom units selling for early $400,000s within close proximity of the rail and shops.

Campbelltown provides the most options for the sub-$500,000 market.

"You have the option of three-bedroom detached houses on circa 700 square metre blocks, modern two and one-bedroom units, or a variety of villas and townhouses," the valuation firm suggested. 

A recent example is an older 1960s three-bedroom, one-bathroom dwelling on 691 square metres of land selling for $450,000.

The house had some minor updates throughout and would be perfect for a first home or investment.

"If you are after a modern unit, there have been some recent sales between $420,000 and $500,000 of modern built, two-bedroom, two-bathroom units," the valuation firm stated.

The sub-$500,000 price point is mostly made up of first home buyers and investors.

These participants are generally sensitive to price and interest rate movements.

A number of the major lenders recently reducing their interest rates is likely to have a positive impact on this sector of the market.

Within the new estates in western Sydney, buyers with a budget of up to $500,000 can mostly only find land.

Examples would include a rectangular shaped 350 to 500 square metre parcel in Box Hill in the north-west or Austral in the south-west.

The variance in price will depend on frontage and position within the developing suburbs.

"Given this, we have recently seen some three-bedroom, two- bathroom villas for sale at this price point in Austral and there are units proposed for Box Hill which will fall under $500,000.

"For even better value, buyers can head to North Richmond, where for $475,000 to $500,000 you can acquire a 650 to 700 square metre, rectangular shaped block."

The commute is circa 70 kilometres from the Sydney CBD, but more importantly circa 50 kilometres from both Parramatta CBD and the proposed second airport at Badgerys Creek.

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Western Sydney Htw

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