Sydney - Differentiators between North West vs South West

Discussion in 'Where to Buy' started by qonyx_sydney, 27th May, 2015.

  1. qonyx_sydney

    qonyx_sydney Newbie

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    I would regard some of the new North West Sydney suburbs (Rouse Hill, Schofields, The Ponds etc) as very similar to new South West Sydney suburbs (Edmondson Park, Leppington, Gregory Hills, Middleton Grange).


    -Both have shiny new master-planned estates with similar facilities (pools, tennis courts, parks, etc)
    -Both have significant Government Infra spend (Roads, Rail projects)
    -Both have similar levels of private retail planned spend (Costco, Town Centres, Ikea, Bunnings, Masters etc)
    -Both have high levels of migrant population
    -Northwest has better localized white collar job opportunities (Norwest business park), however this is counterbalanced with the massive airport infra spend in Southwest (Badgery's Creek)
    -Both are similar distance to Sydney CBD

    So my question, why do Northwest Sydney has higher median valuations when compared with similar property in South west....

    Thoughts.....?
     
  2. beachgurl

    beachgurl Member

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    Because people associate The new Blacktown developments with the Hills district and anything south west is associated with Campbelltown. All about perception.
     
  3. qonyx_sydney

    qonyx_sydney Newbie

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    I'd agree with your comment on perception, however what that suggests is that if the fundamentals are the same then should eventually balance out over a longer time-frame.

    The question again, can perception be the cause of a $160k difference in valuation if the fundamentals are the same?

    The Ponds $833k median
    http://www.realestate.com.au/neighbourhoods/the ponds-2769-nsw

    Edmondson Park $673k median
    http://www.realestate.com.au/neighbourhoods/edmondson park-2174-nsw
     
  4. Nick Valsamis

    Nick Valsamis Vantedge

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    There has been higher demand in the Hills areas for a long time. You could have asked anyone and they would have preferred to live there. But it does look like South West is now the big growth area in the West.

    It's mostly the new land developments and the areas before Campbelltown that are highly desirable.

    Perception and where people want to live. I suspect that you would also see that the average household income is higher in the Hills areas too.
     
  5. qonyx_sydney

    qonyx_sydney Newbie

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    Agree SW Sydney is bounding forward and may catch up.

    Re:Income - Markets within markets - so gotta compare apples with apples

    Just to prove a point. Harrington Park vs Rouse Hill. Massive McMansions on big blocks. The incomes are very similar

    Harrington Park - Average Weekly Income - $2125/weekly
    Median House - $654,000
    http://www.yourinvestmentpropertymag.com.au/top-suburbs/nsw-2567-harrington-park.aspx

    Rouse Hill - Average Weekly Income - $2132/weekly
    Median House - $832,000k
    http://www.yourinvestmentpropertymag.com.au/top-suburbs/nsw-2155-rouse-hill.aspx
     
  6. Nick Valsamis

    Nick Valsamis Vantedge

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    Yes looks like for those areas it is the same, but I was thinking more of as a whole collection of suburbs, when people decide South West or North West.
     
  7. Propertunity

    Propertunity Real Estate Buyers Agent

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    I'm surprised that no-one has mentioned it. The Hillsong effect? (dunno, maybe)
     
  8. roberto

    roberto Member

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    I also think the difference in price is due to perception. The same reason why the same house is more expensive east of Winsord Rd than west of Winsord Rd.

    In my opinion overtime the difference on prices will narrow. For example, since the mortgages are likely to be higher in Rouse Hill than in Harrington Park and both share the same level of income, you could argue than in a correction Rouse Hill pricess will drop more than Harrington Park.
     
  9. ej89

    ej89 Member

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    Don't just look at Harrington Park because that's the luxury estate in Southwest..

    Look at Oran Park, Gledswood Hills, Leppington and Edmondson Park. Look at demographics.. Edmondson Park household income is $1200. Leppington is $1040.. I can't find the incomes for many of these other suburbs but i'm guessing they're lower in comparison to The Ponds ($2471), kellyville ($2251), Stanhope Gardens ($2140) and Bella Vista ($2634)..

    Let's look at geographical location too.. Harrington Park is 64km from Sydney CBD according to google maps..58km to Parramatta..

    Rouse Hill to Parramatta is 20km and 43km to Sydney CBD. It has better (trendier) shops and is closer to some more desirable suburbs e.g. kellyville, bella vista, castle hill..So will be looked at as more desirable I guess..

    The closest major shopping centre to Harrington Park is Macarthur Square, which is nice, but it's still Campbelltown..Closest to Edmondson Park is Livo Westfields..until Edmondson Park shops are built anyway.. I can't find the

    I live not too far from Edmondson Park, and I think it's all just as nice as Northwest.. I just feel once you go past Edmondson Park or even Leppington though you're just so far away from everything.. In saying that, people thought Rouse Hill was too far not too long ago.. I don't know if the airport will have a positive or negative affect on property prices in SW..Only worry I have in SW is that there's sooo much more land that's gonna be subdivided and there's even rezoning of more land to be subdivided whereas NW has a fair bit too but most estates are at least half sold..
     
  10. ej89

    ej89 Member

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    I go to Hillsong mate.. Care to share how a church influences prices of property around it?
     
  11. abdoug

    abdoug Member

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    Traditionally suburbs north of the m4 have been perceived as higher end than those south of the m4. It happened before (i.e. guildford vs northmead, westmead vs. merrylands, bankstown vs epping, etc.)

    Its somewhat happening now too. Super long term, ceteris paribus, the south west has an advantage I reckon, with the new airport coming up. If you're looking for just long term (or mid term), I'd expect the difference to remain somewhat similar.
     
  12. ej89

    ej89 Member

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    If you're smart about your purchasing in new estates you'd try to get into the NW growth centre at SW prices :)
     
  13. qonyx_sydney

    qonyx_sydney Newbie

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    Nice bit of analysis, however the income statistics would be skewed in the developing suburbs of Edmondson, Leppington, Oran Park as development of the land would include old landowners incomes (semi-self-sufficient agricultural) and this would contribute to the lower income average.

    I think if you took the average incomes in the brand spanking new estates that they would be very similar to the NW's average incomes you suggested. (ie. you need decent incomes to support $600-900k mortgages in both locales)

    I guess what i am really trying to figure out - is the South West undervalued or the North West overvalued based on the price differential........
     
  14. wombat777

    wombat777 Member

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    I think that generally the Northwest is more leafy than the South West, which I think is one factor.

    The Hills also has proximity to both Macqaurie Park and Norwest Business Park.
     
  15. egga

    egga Member

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    Could be because the work opportunities in the nor west business park.
     
  16. qonyx_sydney

    qonyx_sydney Newbie

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    already called that out in my opening post, but feel it is counterbalanced by the big $4billion airport spend +associated road infra


    any other thoughts>
     
  17. kamchatsky

    kamchatsky Member

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    That airport is long term, also people do not like living near airport (unless it is close to CBD) due to aircraft noise.

    Also there are still plenty of lands out there for development.

    When NWRL is completed the Hills district will be connected to Norwest, Macquarie Park, Chatswood, St Leonards, North Sydney and City. That is very easy access to a lot of white collar jobs.

    I know people who live at South (Beverly Hills) and commute to Macquarie Park and it took them ages even on train. They eventually moved up north of Sydney.

    SW just does not have many white collar jobs out there.
     
  18. kamchatsky

    kamchatsky Member

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    Hillsong also have South West Campus at Campbelltown .....
     
  19. qonyx_sydney

    qonyx_sydney Newbie

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    Thanks Kamchatsky, i think you hit the nail on the head with a dimension that that i didn't consider. And it is your point around better access to white collar work in the Parramatta, Maquarie Park,St Lennards, North Sydney corridor.......

    I didn't really think about that in my analysis as i was only thinking localized or CBD.

    As such I would likely predict that the valuation gap would remain unless there is an increase in whitecollar or other job opportunities in the south west.
     
  20. ferdinandch

    ferdinandch Member

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    I live in Baulkham Hills, and feel I don't need to lock my car when I drive around, I don't need to set alarm in my house ( I don't have dog), and I don't feel I need to park my car inside garage. Definitely I will do all of those, if I live in SW. I travel a lot to Banksia, Casula and Revesby area, I definitely can say those areas are not for me. I'd say my perception about security, the deciding point.