Young families defying recession to lead revival
Article from: The Daily Telegraph
EXCLUSIVE by Simon Benson
March 07, 2009 12:00am
WESTERN Sydney is in the grip of a property mini-boom, with exclusive NSW Treasury figures revealing that young families are defying a national recession.
Data from the Office of State Revenue shows that across all western Sydney suburbs, property sales for the three months to February have soared by up to 20 per cent on last year.
Liverpool, Campbelltown and Fairfield have recorded 12 per cent rises in sales, a six-year high, while Blacktown and Penrith have seen a 20 per cent increase.
A total of 8455 contracts were exchanged on new and existing homes during the three-month period in the Western Suburbs - an increase of more than 1100 over the same period last year.
Less than a year after the region was in the grip of a housing affordability crisis, young families, not investors, are driving a new boom with more than 50 per cent of all sales being first home purchases - with most sold for less than $500,000.
The figures also reveal the total outlay on first-home buyer grants since they were introduced in 2000 has now exceeded $5 billion in NSW alone.
In Fairfield and Liverpool 51 per cent of sales were to first-home buyers, while Campbelltown had 48 per cent of sales.
Economists claim that western Sydney families are now enjoying lower fuel prices, reduced mortgages from lower interest rates and a boost from both state and federal government to the respective first-home buyer grants last year.
They are also the most likely demographic to have benefited from bonus payments from the Federal Government's two stimulus packages.
But the boom is a double-edged sword for the State Government, with the demand for first-home buyer grants costing Treasury $355 million last year.
It is also impacting on state revenues, with the majority of transactions under $500,000 and exempt from stamp duty.
Treasurer Eric Roozendaal confirmed western Sydney was driving a mini-boom in the property market and said it was clear young families were driving growth, not investors or high-end buyers.
"We are seeing major housing growth in western Sydney where the great Australian dream of owning your own home is within reach," he said.
"We are getting more young families into their first homes. Stamp duty concessions and first-home buyer grants mean benefits of up to $41,990 are available for first-home buyers."
First-home buyers snapping up lower-priced inner-city units have also boosted an otherwise flat real estate market.
In suburbs within 10km of the city, units priced at less than $500,000 are selling within a week.
Properties around Kings Cross are fetching the vendor's full asking price.
A studio unit listed for almost $300,000 sold for the full price three days after the first inspection last Saturday.
Western Sydney developer Mark Regent, of Buildev, said demand in the Western Suburbs was "very strong and widespread" with the strongest sales in January since 2003.
"I have not seen a downturn in people's mood. On the contrary I just think people in western Sydney just don't make a lot of noise. They get on with their lives and for many its never been better."
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