I find this in new estates in Melbourne as well. Smaller blocks equals more blocks and more return for developers.
What are peoples thoughts on house/land price suppression on established surrounding areas? Are buyers going to be saying: why should I buy an established place for $500k when I can spend $600k and get a new house and land package, thereby limiting growth of established areas like Bidwill, Colebee, Hassall Grove, Plumpton, etc.
I'm yet to find any details on how much land will be released and when for development of the area.
Colebee, Hassal Grove and Plumpton are ok. In fact, if you buy land and build a house on it it probably works out to be cheaper than buying a house in Hassall Grove, Plumpton and Colebee (if you find a good builder that doesn't overprice).
Places like Bidwill, Shalvey, Lethbridge Park, Tregear and the others will be in demand for a while I think because of their price but you gotta remember one thing.
Not everyone can afford to pay 100k more to live in a nice new estate and it's hard to get any house and land in that area under 650k now, but to give you an idea of the demand of the new estates, I put a holding fee on a house and land in Riverstone for 584k because I knew the interest rate may be cut 3 days later.. 2 weeks after the rate got cut, the same house and land packages were selling for 100k more. In fact, there have been multiple that have been sold for 700k+ now since then because the land is 20sqm bigger than mine lol I haven't exchanged contracts yet though because their solicitors are being a pain in the backside but hopefully I can wrap it up today..
People who want to buy "cheap" detached houses in Sydney now will obviously be buying in those Bidwill, Tregear etc areas.. problem with that is that there is higher crime rate, and a fair bit of housing commission apartment blocks between houses..I looked there for a PPOR for me and my potential wife to be because it was so cheap 6 months ago and she was excited about the price but then when we got there she was actually scared..I never thought there'd be a day when crappy houses in crappy areas of crime could hit 400k minimum..
Plumpton, Colebee and surrounds are predicted to continually go up..I think their location is good because the new airport is 25 mins away too. I don't think the old houses will stop going up as their land is bigger. Only issue I have with those low socioeconomic areas is that the rent can't go much higher unless centrelink starts paying people more money whereas newer areas will demand good rent because they're new houses with a lot of shops around..