Sydney suburbs where buyers can negotiate the best home deals

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Ellen and Michael Oates, with kids Elijah, 2, and newborn Audrey, bought their first property. Picture: Sam Ruttyn

Buyer competition has been heating up this spring but home seekers who want the best chance of squeezing out a better deal on prices should consider unit sales in Sydney’s southwest.

New research has revealed sellers of apartments in regions such as Campbelltown, Liverpool and Fairfield tended to offer the most generous discounts.

They were also more willing to go to the negotiating table because their homes often took longer to sell compared to the Sydney average.

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Apartment sellers in the Campbelltown council area dropped their listed prices by an average 9.4 per cent before selling over the year to June, while in the Fairfield area the drop was 8.4 per cent.

Liverpool apartment vendors slashed their prices 8 per cent before selling, according to the CoreLogic data.

The discounts were even larger in suburbs where there was a high concentration of newly built apartments for sale, which meant buyer demand was spread around.

Buyers in the Campbelltown suburb of Ingleburn managed to negotiate an average of 12 per cent off the listed prices of units, while in Leumeah and Glenfield the average discount was 10 per cent.

Detached house sellers were also more willing to negotiate in Sydney southwest.

Liverpool house sellers were just as generous with discounts on their listed prices as unit sellers, cutting an average 8 per cent off before exchanging.

In the Wollondilly council region, an outer fringe area of Sydney that includes suburbs such as Picton and Thirlmere, vendors cut their listed prices by an average 8.6 per cent before selling.

There is more choice for buyers in Sydney’s southwest.

Realestate.com.au chief economist Nerida Conisbee said competition for properties in Sydney’s far west and southwest was lower because the prices never dipped as low as properties within inner-ring areas.

“Right now buyers are going for the areas where there were big price (falls) over the past two years, including the inner west, eastern suburbs and lower north shore,” she said.

Areas where buyer competition was stiff also had a lack of properties on the market, which meant buyers had to put in generous offers to be able to secure properties ahead of rival home seekers.

“In places like the northern beaches there is hardly anything for sale, but there are a lot of buyers looking and a lot of buyers who want that beach lifestyle,” Ms Conisbee said.

The auction clearance rate in the northern beaches area hit 87 per cent week — usually a sign of red hot market, CoreLogic data showed.

Property prices in Sydney’s east, inner west and northern beaches have been soaring.

On the north shore, 85 per cent of auctions produced a successful result, while the inner city clearance rate was 84 per cent.

In the southwest, the clearance rate was 64 per cent — a figure more in line with the long-term average for Sydney as a whole and indicating a market more evenly matched between buyers and sellers.

PK Buyer’s Agency director Peter Kelaher said spring conditions would offer buyers the best chance at getting a foot onto the property ladder as the market could become even more competitive next year.

“There will be a lot more first home buyers in the market because of the government’s (First Home Buyer Loan Deposit) scheme and there will be more credit available to buyers,” Mr Kelaher said.

The government’s scheme will allow first home buyer to purchase properties with only a 5 per cent deposit and without needing to pay lender’s mortgage insurance.

“The market is strong market at the moment but it could really go off next year,” Mr Kelaher said.

FIRST HOME BUYERS CAPITALISE

Michael and Ellen Oates felt like the stars were aligning when they started looking for their first home.

They needed extra space after recently having another child and were growing frustrated with paying rent, but it was also good timing for pricing, they said.

Ellen and Michael Oates said they realised it was a good time to buy. Picture: Sam Ruttyn

The couple had been watching sales closely and figured they could get into a well-located suburb for less due to recent price falls. They originally zeroed in on homes in the inner west but switched to the lower north shore after realising it offered more family-friendly options.

It was this flexibility with locations that helped them finally bag a two-bedroom apartment in Roseville for around the $900,000 mark in August, through Mortgage Choice, Ms Oates said. “We still had to look at a lot of different suburbs,” she said. “The hardest part was just finding something suitable for us.”

Ms Oates said they felt good to be owners after a year of looking. “We’re pretty excited.”

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