Bargain buys: the Sydney suburbs where home buyers can get big discounts ahead of election

Decreased competition for housing in the lead up to the federal election has been creating opportunities for home buyers to get property bargains in some Sydney suburbs. See the list

The lead up to the federal election has created a window of opportunity for homebuyers to get a bargain in some city pockets.

A new study revealed there was an imbalance between buyer demand and the supply of available housing in many areas, with the lower competition for properties helping buyers get better deals.

The Select Property research, which measured every Sydney suburb across 17 metrics, showed the 30 suburbs offering the best prospects of unit and house bargains fell into two broad categories.

They tended to be suburbs more than 25km from the CBD, some of which were popular during the early onset of the Covid pandemic, or those where there was an abundance of newly-built houses or units.

This pair of first homebuyers said they took only two weeks to buy. Picture: Tim Hunter.

The suburbs included Oakville, Vineyard, Londonderry, Eastern Creek and Marsden Park, in the city’s west and northwest, along with high density suburbs Olympic Park, Rhodes and Homebush.

Other further flung suburbs with a high supply of housing relative to demand included Bundeena, south of Cronulla, and Scotland Island, near Palm Beach.

Both had a spike of buyer interest in the early stages of the pandemic as more city workers capitalised on remote working arrangements, but recent demand has soured.

Demand was also lower, relative to supply, in some premium markets such as Double Bay, Willoughby East and Tamarama – albeit with prices still in excess of $3.5m.

It comes as agents reported home seekers have been increasingly sitting on the fence awaiting the outcome of the election and this, coupled with the already cooling market, has sapped buyer demand.

Attendance at auctions has been dropping. Picture: David Swift

There were also reports of a growing fear among buyers that potential interest rate hikes could spur a major market downturn and many were refraining from making offers on properties.

It’s left an open door for the home seekers who have still contested properties and many were securing homes with no or minimal competition.

“Buyers are taking a punt with lower offers and often they’re getting accepted,” said Mortgage Choice’s James Algar.

He added that home seekers who were banking on a flurry of significant bargains during a major market correction later in the year were taking a risky bet.

“There’s no reason to think that’s going to happen,” Mr Algar said. “There are still many people ready to buy, they’re just sitting on the sidelines … there is an opportunity for buyers who move now. A lot of the market is distracted by Ukraine, inflation, the election.”

Auctions have delivered mixed results depending on the Sydney suburbs. Picture: Sam Ruttyn

Select Property Group director of research Jeremy Sheppard said Sydney’s housing market was cooling, but there was no guarantee prices would drop considerably later in the year.

Those who found good deals or value for money now were best off capitalising, rather than trying to wait for a better deal to come along, Mr Sheppard said.

“Timing the market can be nearly impossible,” he said.

Ray White chief economist Nerida Conisbee said federal elections tended to be a good time to be a buyer.

“Markets usually slow as we head into elections,” she said. “People usually don’t want to sell because others are distracted, but those who do sell are more motivated, so buyers get some advantage.”

TWO WEEKS DOES IT FOR FIRST HOMEBUYERS

It took just two weeks and five inspections for young couple Lucy and Lewis to buy their first home in Sydney.

Their experience reflects a turning point in the Sydney property market after almost two years of feverish demand from buyers led to astronomical price growth.

Lucy and Lewis recently purchased an apartment in Kirrawee using the first home loan deposit scheme. Picture: Tim Hunter

The couple spent a fortnight attending inspections before they found their two bedroom apartment in Kirrawee last month.

They said on average there were about seven other groups attending open inspections at any given time and that only two turned up to the unit they bought. Their offer of $760,000 was accepted without a fight.

The pair successfully applied for the First Home Loan Deposit Scheme (FHLDS) before they pounced on a shortlist that fit their criteria.

Their broker, Aidan Hartley from Blue Owl Finance, said the market had changed in recent weeks. “There seems to be a lot of stock and not as many buyers at the moment,” he said.

“Throughout 2021 it was almost impossible to purchase. There were 50 people at auctions and it was very difficult to get hold of any stock … At the moment, we are noticing that committed buyers are finding property a lot quicker.”

30 Suburbs with highest supply, lowest demand (houses): Oakville, Vineyard, Marsden Park, Tennyson Point, Prairiewood, Londonderry, Eastern Creek, Ramsgate, Pitt Town, Freemans Beach, North Turramurra, Rossmore, Northwood, Airds, Edmondson Park, Double Bay, Rhodes, Lane Cove West, Bundeena, Scotland Island, North Wahroonga, St Ives Chase, Willoughby East, Lapstone, Tamarama, South Turramurra, Yennora, Leppington, Voyager Point, Zetland

30 Suburbs with highest supply, lowest demand (units): North Turramurra, Blakehurst, Lidcombe, The Rocks, Sydney Olympic Park, Schofields, Northbridge, Rhodes, Point Piper, Georges Hall, Lilyfield, Homebush West, Bonnyrigg, Cabarita, Chester Hill, Marayong, Holroyd, Berala, Concord West, Caringbah South, Rouse Hill, St Leonards, Tamarama, Harris Park, Pendle Hill, Auburn, Warriewood, Cromer, Girraween, Katoomba