Real estate boom turns Mount Druitt residents into millionaires
It may seem like an unlikely millionaire’s row but Western Sydney suburb Mount Druitt and its surrounding suburbs have become home to a growing number of millionaires due to a surprise real estate boom.
Property sales data showed a spate of local homeowners have been selling their properties for well above the $1 million mark, with some collecting up to $750,000 profit on their resales after just four years of home ownership.
Homeowners were able to secure these high prices because a wave of families were relocating from the inner west, Canterbury-Bankstown area and Liverpool with cash to spend on larger blocks.
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The area was also in the crosshairs of developers, who have been buying blocks to turn into units and townhouses, real estate agents said.
Mt Druitt was appealing for these developers because it was more accessible than other areas to the northwest and southwest where more land was available for new housing estates.
“The zoning is more malleable and developers like that,” McGrath-Blacktown agent Joel Hollings said.
Apart from developers, many of those building new homes in the area were multi-generational families hoping to replace the older houses with five or six-bedroom mansions, he said.
“Every area goes through a rejuvenation eventually and that’s what’s happening here,” Mr Hollings said.
Recent Mt Druitt sales included a nine-bedroom house on Callagher Ave, which changed hands prior to its late July auction for $1.24 million.
A four-bedroom house in neighbouring suburb Rooty Hill sold for $1.1 million, while in Minchinbury just to the south, another four-bedroom house sold for $1.03 million.
Listings in the area included a red brick house in St Marys advertised at $2.8 million-$3 million and a five-bedroom house on 0.75ha in Rooty Hill with a price guide of $5 million to $5.5 million.
Remax agent Billy Markovski is selling the multimillion-dollar Rooty Hill property at 39 Beames Ave and said the price was possible because of a recent change in demographics.
“There’s a completely different community living here that wasn’t here a few years ago,” he said.
“Buyers are coming from suburbs where the blocks are usually 500sqm, but here they’re often around 1000sqm.
“When you’ve got that and all the new infrastructure coming into Western Sydney like a new airport and better roads it’s very appealing (for buyers) and prices are going up.”
Mr Hollings said local homeowners were often shocked to discover their homes were worth more than $1 million. “We had sellers who bought their home 40 years ago when the area was completely different and they got $1 million. They’re obviously really happy. They wouldn’t have got that price a few years ago.”
The high prices are an about turn for a region that was in the national spotlight in 2015 after SBS documentary Struggle Street portrayed it as a hotbed of poverty and drug addiction.