NSW Liverpool

I drive past that Skyhaus site and think to myself everytime, by the time that thing is finished I wonder how many people that paid deposits are going to burn when the vals come back short. It's not even half way there. Over 400 units. Imagine the traffic issues as they try enter the Hume Hwy from one or two possible entry points on a Monday morning.

 

Guess what the developer is thinking every time he/she drives past the $ite...?

 

When this thing settles, I'm going to buy a an island in the Caribbean?

 

Lol he's already in the Caribbean with the deposits

 

They have continued to go up and hold for over the last year, I just started getting a bunch of e-mails with OTP offers in last few weeks.

I want a unit there, but decided to wait till they fall in price, but they have been heading north the whole time, houses are heading South, I can only guess it is due to being affordable and still probably cheaper than elsewhere.

PS I know 2 people who very recently committed to units in parra area, very expensive.

 

I have some rentals in Liverpool area - old places - and have been looking to what the future holds for Liverpool.
Right now I can see lots of near future oversupply of new units and and undersupply of older (cheaper) units and houses.
With the government thinking to house 7000 Syrian refugees between Liverpool and Fairfield over the next few years I can forecast some good rent rises and low vacancy rates.
The outlook for the central Liverpool unit (modern slums) is not so good.
Too many punters paying too much for ordinary standard units - nothing "special" to hold value.
Developers have already added their cut of the hype.
There are some better developments just outside the CBD for less $$$ and others further out along the T-way line.
Come the interest rate rises I think there will be a few fire sale bargains.
Be patient...or expect to get burnt with a valuation on completion in 2018.
If you need to do it now then bargain hard.......

Liverpool in 2026 will be fine - new airport, new rail, new roads, more industry, more urban expansion, more residents for SW Sydney.

 

Two reasons I wouldn't buy a unit there.

1: I remember the blood bath in the early 2000's there when the boom came off. That area was just coming up at that time so no where near the supply issues there is now and it was still very bad. Still a fair few red brick houses to knock down in there too so there will be more supply.

2: Quality issues. Doesn't just go for those units but anything being built in Sydney at the moment. There will be special levies galore on these unit blocks in 5-10 years. A relative of mine just had their volume builder completely knock there new house down and start the brick work again it was that bad...

 

100% agree with this. In the next few years i'll be buying up old houses in the surrounding suburbs with 600m2 + for potential development.

 

And to top it off, the site across the road is another 30 story high rise.. from what i have heard....

 

Thanks Biz, I understand your reasoning, I was thinking they would have already drooped off (I am only interested in older walk up blocks) watched them go from 300 to 400 over last 12 months or so, the new units may mean the older ones do not drop so much.

If they come back under 300, I will be looking closely, we will see what happens.

Why did they drop so much last time, do you know ? Too many investors ?

 

Prices dropped across Sydney regardless but a 2 bedroom unit in Liverpool especially is a very cookie cutter product.

If I had to buy anything I would buy a walk up too. Try and look for a block with not too many units and good land content, in 10-20 years there is a good chance a developer will offer to buy the whole block and redevelop it as the areas where those blocks are are now rezoned for higher density.

Those blocks were built by a few Jewish guys back in 60's when Westfields was just a squirt.

 

Where did you hear that?

 

I have read about it in the local and RE told me it was true.. however i believe it is still in the approval process.

 

I believe you are talking about "The Point" corner of Hoxton Park Rd and Hume Highway. These were marketed in 2013 for completion 2015, however it may be one of those cases of the developer pulling the sunset clauses as i have noticed that the signs have been removed and it is now for sale.... if it was a sunset clause (for the financial benefit of the developer) i hope the developer gets taken over the coals in court for this.

Note: the starting prices back in Nov 2013 @ $375k, it is easy to see why someone could assume a sunset clause was pulled, given the current overmarket valuations of $550k for a 2br

Refer
The Point, Liverpool
NewsLocal digital edition

 

I believe you are correct. An agent for Skyhaus told me the same thing.

 

Here is the listing. I don't even want to think about how much more traffic there will be with the 307 apartments from this + 424 from skyhaus.

4-6 Gillespie Street, Liverpool, NSW 2170 - Land/Development for Sale #501857722 - realcommercial.com.au

The nissan dealership is for sale as well.... 431 Macquarie Street, Liverpool, NSW 2170 - Industrial/Warehouse for Sale #501893554 - realcommercial.com.au

 

@RenegadeDom ..do u still think so? now in end of june ?... I see there is still lots of demand from buyers..(during inspections)
Im thinking to buy live in property in liverpool since couple years !..now in cross roads whether to go ahead or hold of...very confusing !!

 

it has fired up again, APRA changes all sorted, interest cut, so people are buying again.

it is one of those things, if Sydney has no drop and they go back to prices of 6 months ago and keep adding 2% a year, then maybe you will wish you jumped, you will only know in the future if you will kick yourself or say thank goodness I did not get in.

 

If you buy do you have the budget for a house rather than a unit? I still think buying a unit in Liverpool is risky.

 

Gotta agree with general sentiment of this thread. 100+ apartments for rent in a suburb of this size is a sure sign of oversupply... and that's not including the new stock about to roll off, which I'd imagine to have been mostly purchased by investors as well.

However, if you're looking to buy as a PPOR because you have commitments in the area, enjoy it's amenities and want to live in a brand spanking new home, then that factors in a whole heap of other considerations...