The Sydney real estate market is so overheated that potential buyers pay a $ 2,000 fee to view only blocks of land that are 84 km from the city center.
Developers Lendlease and Mirvac are both selling home and land packages, starting at $ 800,000, on the southwestern edge of the city.
And the competition is fierce.
While expensive, simple homes in new master-planned suburbs are slightly more affordable than Sydney’s record price of $ 1,147 million, which is up 11.2 percent in the first four months of 2021, CoreLogic data showed.
But many of these outer house and ground packages in Sydney are more expensive than the $ 869,676 average home price in Melbourne.
The Sydney real estate market is so overheated that potential buyers pay a $ 2,000 fee just to view blocks of land more than 50 miles from the city center. Depicted is the development of Lendlease’s Bingara canyon
Lendlease is selling new homes in Wilton, 52 miles southwest of the city, for between $ 790,000 and $ 1.2 million, in an area that until 2013 was seriously considered the site of Sydney’s second airport.
Like many neighborhoods planned by the master, the new Bingara Gorge suburb has a fake lake.
Lendlease’s Kings Central development in Werrington near Penrith, 50 km west of Sydney, received 2,000 inquiries ahead of its first weekend opening in March, with home and ground packages available for $ 720,000 to $ 950,000.
Interest in both projects is so great that potential buyers will have to pay a fee of $ 2,000 to jump in line to see available blocks, which will be refunded in full if they don’t end up signing a purchase contract.
Ben Christie, head of residential real estate at Lendlease, said buyers were particularly interested in brand new homes that didn’t require renovation or repair.
“We have experienced strong demand for our shares,” he told Daily Mail Australia.
Lendlease is selling new homes in Wilton, 52 miles southwest of the city, for between $ 790,000 and $ 1.2 million, in an area that until 2013 was seriously considered the site of Sydney’s second airport. Depicted is an artist’s impression of a house
“These numbers indicate confidence in both the Australian housing market and our turnkey product, which as a fully completed home is remarkably attractive to many customers.”
Maggie Xu, of the Byton Realty Group, said the demand for house and land parcels in Menangle Park, near Campbelltown, was greater than the availability of blocks.
“I don’t have any available supplies at the moment,” she told Daily Mail Australia.
“We are all waiting for the land developer to release the land.”
Prospective buyers at Mirvac’s The Village development in Menangle will have to pay a $ 1,000 refundable fee just to inspect a piece of land.
But a Mirvac spokeswoman said the refundable payment was common for new housing developments.
“Prospective buyers will pay a $ 1,000 reserve surcharge to secure their purchase appointment on land release days,” she told Daily Mail Australia.
Interest in the development of the Bingara canyon is so strong that potential buyers will have to pay a fee of $ 2,000 to jump in line to see available blocks, which will be refunded in full if they don’t end up signing a purchase contract
Proof that the young people miss a home
SYDNEY: Up 2.8 percent to $ 1,147,352
MELBOURNE: Up 1.4 percent to $ 869,676
BRISBANE: Up 1.8 percent to $ 621,806
ADELAIDE: Up 2.2 percent to $ 526,155
PERTH: Up 0.9 percent to $ 537,020
HOBART: Up 1.1 percent to $ 600,774
DARWIN: Up 2.7 percent to $ 534,332
CANBERRA: Up 2.1 percent to $ 833,080
Source: CoreLogic Home Value Index for April 2021 with regard to median home prices
Those wishing to purchase a lot on the Menangle Road site must complete a form to request an appointment on the realestate.com.au website.
The land along the Nepean River is also near two train stations.
In Sydney, there are still more potential buyers than sellers. A survey by ME Bank found that 38 percent of respondents planned to buy during the next period, compared to 13 percent who planned to sell.
Buyers of first homes are still eager to enter the real estate market despite the hurdles.
“While general sentiment is lower among first-home buyers, our findings show that they are still eager to buy real estate for the next year,” the ME report said.
The ME Quarterly Property Sentiment Report surveyed 1,000 Australians on the property market, including 570 owners, 251 investors and 268 first-time home buyers.
The federal government has also extended the HomeBuilder program through April 2023, where property owners will receive $ 15,000 in grants to build a home worth up to $ 750,000.
Everybody’s Home spokeswoman Kate Colvin said that social housing would have been a better investment in the federal budget, arguing that rising home prices were causing more homelessness.
“Rising house prices are causing more and more people to become homeless, including women and children escaping domestic violence, young people who cannot stay at home and elderly people on low incomes, especially women,” she said.