Property values in Sydney’s booming second CBD have taken a hit — and buyers are jumping at the chance to snap up a home for less.
The latest data shows the median house price in Parramatta dropped by 27.9 per cent in the 12 months to October, falling below the million-dollar mark for the first time in years.
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The suburb’s current median house price is $939,750. In 2015 it was $1 million and two years ago it was $1,302,500, according to CoreLogic records.
Ray White Parramatta Group’s Rowan Thredgold said while prices had picked up slightly in the new year the pullback was due to a lack of stock.
“There has been a very little number of houses sold lately, which is a reflection of people not having the confidence to sell at the moment,” Mr Thredgold told the Parramatta Advertiser.
“Our office is working to a decline of about 10 per cent and this has allowed buyers to comfortably afford a house in the area,” he said.
Buyers who had held tight for 12 months or more were now jumping at new listings, the agent said.
Attracting first-home buyers, the renovated house at 30 Wandsworth St is selling with a $849,000 to $869,000 guide. About 18 months ago, it would have had a price tag in the early $900,000s.
Records reveal the last advertised price for a home in Auburn St was $849,900 but it sold for $780,000.
With the rise of apartment living, detached dwellings make up less than 10 per cent of the housing options in the suburb of Parramatta.
In North Parramatta, 22 per cent of properties are houses. In Merrylands, houses account for half of all homes.
Harcourts Parramatta director Ramez Riad said more buyers were competing for the few houses on the market in the CBD.
He recently sold the house at 52 Thomas St before auction as three groups were making solid offers.
“It is in original condition with a 50-year-old kitchen but it sold for $1.055 million — and the buyers will need to spend at least $200,000 to fix it,” Mr Riad said.
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The property sold to a couple from Mona Vale as an investment. It was their first out west.
“Buyers are coming from everywhere, even the city, and they (owner occupiers) are willing to get on a train to get to work because it is cheaper here,” he said.