Northmead Property Watch Q3 2013
Observing the house and unit sales cycle over the April six month period pointed to a new record for attached and detached dwellings. Closing the April period at $560,000, the median price of a house increase by 6.3 per cent in the 12 months to April 2013, while that of a unit climbed by 4.5 per cent to $392,000.
Further analysis into the house price points highlighted a large concentration of sales in the $500,000 to $599,999 price point. Northmead accounted for most transactions in this price range, with a total of 30 sales. However the highest sale for the period was recorded in 37 Caprera Road, where a property sold for $1,050,000 in November 2012.
The unit price point chart identified the $400,000 to $449,999 as the largest in the Cumberland market, while toward the top end 11 per cent of units transacted for $500,000 plus. Northmead accounted for the highest number of properties in this price bracket, followed by North Parramatta.
A diversity of buyers including first home buyers, investors and upgraders boosted demand for both attached and detached dwellings; first time buyers targeted units in low and mid-range price points, with several purchasing houses as investments as they decide whether to move in or keep as a rental property in the long term.
The house rental market strengthened in the 12 months to July 2013, while rents for units eased. Investors sought units offering a minimum of five per cent gross yield. Data pointed to a decline in advertised rent for a two-bedroom unit (down one per cent to $422 per week) and an increase in the weekly rent of a three bedroom house (up 7.9 per cent for $478 per week). The vacancy rate across the region averaged two per cent, indicating of a tight rental market. That said, signs that rental activity was moderating have been noted in recent months in response to the increase in sales activity.
PRD Research conducted a Days on Market analysis to ascertain the time required to sell a house in the Cumberland Region. The analysis revealed that almost one quarter (23 per cent) of houses remained on the market for a period of 30 days or less, while more than half were sold in a period of 60 days or less. That said, 23 per cent of houses in the first half of 2013 remained on the market for a period of 120 days plus, pointing to price-sensitive buyers and to vendors who were reluctant to meet the market.
There were a limited number of houses on the market, with ten houses in Pendle Hill and nine each in Toongabbie and Wentworthville.