Sunday, 24 March 2013

Home buyers are bound for Sydney's Botany Bay

Home buyers are bound for Sydney's Botany Bay

Real Estate
A recent report names Botany Bay as Sydney's best suburb to buy a house in the year ahead / File
AUSTRALIANS are once again bound for Botany Bay - 243 years after Captain Cook stepped ashore, shook the sand out of his stockings and straightened his powdered wig.
But on this occasion they will move there of their own free will, with a recent report naming Botany as Sydney's best suburb in which to buy a house in the year ahead.
The research, by PRD Nationwide, followed news Sydney's property market was on track for a full recovery.

It pinpointed the hottest suburbs to buy houses, units and vacant land in 2013, based on pricing, infrastructure and property trends.

Research analyst Oded Reuveni Etzioni said Sydney had one of the most resilient residential property markets in Australia.

"The greater Sydney area recorded annual growth in house and unit median price (in 2012) despite a fall in activity and, in particular, an increase in demand for properties toward the bottom end of the market," he said.

"(We expect) small increases in price in 2013 as buyers' cash positions improve. Low interest rates coupled with stable or rising rents will bring more upgraders and investors into the market."
The report found Botany, with a median house price of $842,500, was best placed to perform strongly, while Merrylands and Glenwood also warranted a mention.

"The Botany area is experiencing improving shipping-related infrastructure and a strong residential construction activity," Mr Oded Reuveni Etzioni said

"The suburb's location near Botany Bay and Sydney Airport and its proximity to well-known beaches is attracting residents who seek to balance employment opportunities with lifestyle."
Local McGrath agent Billy Couldwell said people who lived in Botany loved the community feel, while the emergence of cafes and bars further increased demand.

"It is gentrifying and becoming a lot more residential," he said. "It's affordable compared to nearby suburbs and around 50 per cent of the buyers in the area are being priced out of Coogee, Randwick and Maroubra. Anywhere from the $800,000 to $1 million bracket is very strong."
Queen St, in particular, is very popular, with one house snapped up for $910,000 by South Sydney NRL player Jason Clark.

For units, the southern suburb of Mortdale - about 7km from the CBD and with a median price of $415,000 - has emerged as the most likely performer, ahead of the perennial favourite Newtown.
"Mortdale is an established suburb located in the St George region and supported by a regular train service to the city," Mr Reuveni Etzioni said.

The news was welcomed by Paula Parsons, who this week bought a one-bedroom unit in Mortdale as an investment.

She bought the property on Jersey Rd for $325,000 and hopes to get at least $320 a week in rent - a yield of 5 per cent.

"We got a fair price. We live at Oatley, right next door to Mortdale," Ms Parsons said.
"Oatley is very expensive and we actually really like Mortdale too, so it's a win-win."s
The timing was perfect for Ms Parsons, who postponed plans to buy a year earlier and wound up with a better deal.

"I think I got a fair price for what it is," she said. "It's in a really good location, just 700 metres from Mortdale station and also close to Penshurst Station."

Vacant land is a rare commodity in Sydney these days and the PRD Nationwide report names Edmondson Park and North Penrith as hotspots. Initial land in these areas has been snapped up, while thousands have reportedly viewed sites ahead of future releases.

"Edmondson Park has a potential for 6,000 new dwellings," said Mr Reuveni-Etzioni. "Its location in Sydney's south west growth centre ensures that shopping and employment hubs are already designed to support the growing population. A new train station is expected to open in 2016, serviced by the Airport and East Hills and South Lines."

Kellie Unwin, the first purchaser at the Allam Homes Talana Rise development at Edmondson Park, found the site to be perfect for her planned upgrade from a villa to a house.

"I chose to live in Edmondson Park for the central location to the M5, M7 and Hume Highway, as well as the upcoming rail link and town centre," she said. "The surrounding area is already well established with family friendly recreational facilities, schools and a shopping complex just five minutes away."

The top performing suburbs of 2012 were Redfern (inner-east) for houses and Balgowlah (northern beaches) for units, with growth of 13.2 and 13.3 per cent respectively.