The number of house transactions in Sydney’s middle metropolitan ring below the $500,000 mark has dropped off significantly in the face of rising property prices, new research has found.
According to PRDnationwide, more than half of the city’s affordable markets within a 20km radius of the city are now located in the Bankstown Local Government Area (LGA).
Bankstown LGA recorded 376 house transactions below $500,000 in the half year to September 2010.
Oded Reuveni Etzioni, PRDnationwide NSW research analyst, said topping the list for most house sales below $500,000 was Yagoona, followed by Auburn and Chester Hill.
“In total 1105 transactions below $500,000 were recorded during the September 2010 half year period,” said Mr Reuveni Etzioni.
Mr Reuveni Etzioni said the number of house transactions below $500,000 had been decreasing dramatically since 2000.
“An affordability comparison between the September 2010 half year and the same period in 2009 reveals an average decrease of 41 per cent in transactions in the Top 10 suburbs below $500,000,” he said.
Mr Reuveni Etzioni said the top 10 suburbs which recorded the highest sales activity below $500,000 were all supported by road transport links to the business centres of Parramatta and Bankstown.
Many of the suburb identified also have direct rail link to the Sydney CBD with an average travel time of 35 minutes to Sydney’s Central Station.
Mr Reuveni Etzioni said movement to higher price brackets had significantly reduced the number of sales below $500,000 but there were still opportunities available.
“Potential gems still exist for the keen investor who has been priced out of metropolitan and coastal areas if they are willing to invest in the middle ring,” he said.
Of the top ten suburbs, Punchbowl experienced the highest growth in the median house price, rising by 17.9 per cent to reach $495,000.