The Kingsgrove region in Sydney’s south west has experienced a surge in enquiries and sales transactions, prompting a significant rise in the median house price.
The latest PRDnationwide Property Watch report for the Kingsgrove area shows the median house price climbed eight per cent in the 12 months to August 2013. According to PRDnationwide, the sharp increase is a consequence of a price war in which keen buyers are battling one another to get their hands on limited stock in the area.
PRDnationwide research analyst Oded Reuveni-Etzioni said that with its access to rail and road infrastructure and abundant retail and recreational facilities, Kingsgrove was becoming a desirable location for homebuyers and young professionals seeking accommodation in middle-ring suburbia.
“A number of buyers are priced out of Sydney’s inner west, which has led to more interest in middle-ring locations,” he said. “However, the demand is exceeding the stock available for purchase and this shortage is promoting a price war situation at auction where feverish bidding has resulted in record prices.”
The suburbs of Beverly Hills and Roselands were standout performers in the Kingsgrove region, with transactions increasing 43 per cent each and the median house price rising by four per cent.
PRDnationwide Kingsgrove principal Frank Mazzotta said the competitive environment was allowing vendors to get top dollar for their assets.
“We are seeing an increase in buyers coming acorss from the inner west and east of Sydney, chasing more value for their money in Kingsgrove and the surrounding suburbs,” he said.
“There’s been a notable surge in interest from Asian buyers due to excellent public transport infrastructure and facilities in the area. The ease of access to rail services and road links into the city is proving to be an attractive point of difference between Kingsgrove and other middle-ring locations.”