Sydney South West - Oran park & Spring farm

Hi all,

I am eager to get some thoughts on the future for the Narellan & Camden area particularly Oran park & Spring Farm.
The area has seen in excess of 20% each year for the past couple. The price of land climbed steeply with each new release now it's a struggle to purchase land under $400k. Considering the very first lots went for $260.
The area is undergoing many major inferstructure projects including town centre extension, major road works and rail line to Oran Park.
The rise in population due to Sydneys market squeezing buyers out to these areas has had a lot to do with the sudden growth.
Im struggling to find a reason for prices rises to halt any time soon.
I would like to know if people believe there will be a large correction in the market once it does finally slow?

 

They have all been saying there will be, but truth is, who really knows.

It makes sense that if there is rate rises, then things will drop, but it won't just be the SW when there is a pull back.

Everyone talks about West Sydney and airport etc, but if they knew the SW well, they would see how all areas were changing.

Clearly there is demand there, I know a lot of people been going to the SW.

 

My ppor is in Glenmore Park and I work for a civil construction company that does a lot of work in the new developments of western Sydney.

Personally having lived in western Sydney all my life I am actually stunned at the level of land releases and new estates popping up all over the place. My personal opinion of both Oran park and Spring farm is that they are quite far out and I personally wouldn't move there. The airport is still quite a while away so employment is something that needs to be easily accessible but unfortunately those 2 areas are still too far to travel to work for me.

Leppington is also growing with these new land releases, it's going a bit crazy. If there is a correction I wouldn't be surprised, just looking at house prices around where I am I wonder how people are able to afford it.

 

I'm also looking for a property under market value in Spring Farm NSW 2570.
typically 4/2/2 under $700k I guess it is possible since the median price is already more than $700k

Spring Farm Property Market, House Prices & Suburb Profile
what do you guys think of this area ?

 

@Tekoz @Boston george

Are you guyslooking to live? To invest?

I like South West I have to IPs in the area. My last one was in Lurnea Lurnea Property Market, House Prices & Suburb Profile

Its an Area that going through Gentrification at the moment and surrounded by suburbs that are almost All about $1,000,000 Prestons, Moorebank , Casula.
Lurnea is still in the $600,000 price bracket. Has two train stations major shipping malls .

The airport construction will start in Mid late 2018 . The knock on affect in SW Sydney will be huge during construction and when completed will become a Hub the size of which Sydney has yet to see.

 

Lurnea gentrifying? Lol not from what i have seen over the past 35 years. Could be a good place to buy something with development potential but gentrification no...

I like how the shops got torched a few years back and no one has bothered to fix it. Those shops used to sell toilet paper in bulk on the side walk LOL.

 

@Illusivedreams I'm looking for invest first for fw years and then living in it after it has been gentrified better.

Do you see any potential perhaps that you know of ?

 

The owner of the site is ......Im not going to say anything as I don't know them personally.

My understanding site approved for apartments and shops. Has been for years.
Issue is the council wanted a basement car park developer did not.
In so the developer has money to hold until council changes its mind. They have been at it for 3 years.


I will take some photos to show you. Streets of houses (fibro crap) now 2 story semis and town houses. Nice brick modern homes. Semi is more expensive than previous free standing house.

You can argu but look at Prestons to the right Casula To the north and Liverpool and Moorebank to the west.
Simple almost all are now 1 million dollars for a nice house. Lurnes same house is still $600-$700k its just a matter of time prop to it correcting. If it does $200k + profit. It may not but there is no reason for it not to.

Below is the The Milll development 2ks up the road. You can see Liverpool is changing at light speed.Lurnea is a few hundred meters 15minute walk.

 

May I ask how old are you?
In how long would you like to move into the area?

Ethnicity?

This would help in choosing the area?

Would you want an apartment in nice area or want a house in upcoming area ?

 

There is too many apartments already & instead of Lurnea hitting 1 mil, it might be the others coming back, I too like the area for the longer term, but unless already holding there, I would not be starting now.

 

Lurnea just isn't those places. Lurnea is the place new immigrants go because it is cheap. Full of fibro houses and housing commission. Yes there are some newer townhouses, eventually there will be apartments. Yes Liverpool is going to become a "city" but none of this means Lurnea is going to gentrify. It isn't going to become a Redfern in our lifetime.

I almost bought a place there in 2013 pre boom so I do rate it, I just don't agree that it is going to become like nicer areas around it. Also those better areas you refer to used to be a lot better 15-20 years ago... Prices have increased yes but it doesn't mean they are now nicer.

 

@Illusivedreams I'm mid-30 Chinese (Asian) mate , what about you ?
about 10 years initially.

 

The trouble with these sorts of areas is risk. Many newly developed areas do quite well during a boom, but then do disproportionately badly when the market swings back the other way. The problem is new areas tend to be bought out mostly by builders or developers, who purchase far in advance of completion. If demand for investment or housing to live in suddenly drops, they're left holding a lot of land, and will discount heavily to offload it. Being typically big businesses, it's much easier for them to slash costs.

Owner-occupiers and investors who've bought into these fringe suburbs have to compete not only with potential oversupply (when markets recede population growth and investment demand tends to drop sharply) but also with discounting. More people in these new areas also have little or nothing paid off on their loans, so are at high risk of going into negative equity.

In Ireland the majority of the crash happened in these sorts of areas. I'm talking 90%+ drops where some development areas became completely worthless. I am not exaggerating. In my opinion, it's a good idea to be wary of new areas. I'm not saying don't do it, but think very carefully, and consider whether an established area might not offer much better value.

 

That's what I like to hear. I live in prestons.