Last year ended with a second quarter of price moderation for Sydney’s unit market. The median unit price corrected a further 0.4 per cent to $736,879 in the December quarter of 2017. The annual rate of growth has slowed to a 15-month low of 1.7 per cent.

The double-digit annual growth rate experienced from September 2013 through to September 2015 has created affordability constraints for entry-level buyers.

To achieve the Australian dream it has pushed many to compromise on location or property type to find a lower price-point.

Buying your dream property when it comes up for auction is tempting, but it may be more prudent to sell your own home first, depending largely on the state of the market.


There is a glimmer of hope for entry-level home-hunters: there are units in Sydney that have sold for less than $400,000.

This threshold is close to the first homebuyer loan financed in NSW last year, at an average of $365,000 according to the ABS, plus a 10 per cent deposit, considering 20 per cent is a struggle for many entry-level buyers.

To achieve the Australian dream it has pushed many to compromise on location or property type to find a lower price-point.

Last year, only 4.2 per cent of units sold for under $400,000 in Greater Sydney. The outlook was brighter in 2007 with half of the units transacted for $400,000 or less.


Certain regions provide buyers with greater prospects than others. To find a unit below $400,000 you may have to search the fringes of Greater Sydney.

The Central Coast had 27.9 per cent of units sold below this threshold price in 2017, 26.3 per cent in the Blue Mountains, 22.2 per cent in the South West, 8.5 per cent in the West and 4.9 per cent in Canterbury Bankstown.

At the suburb level, Mount Druitt had the highest proportion of unit transactions under $400,000, with a staggering 65.6 per cent selling below this price-point last year. Ettalong Beach offered unit hunters the next best choice with 63.4 per cent of units sold for under $400,000.



Units below this threshold accounted for 39.6 per cent of transactions in Penrith and 38.8 per cent in Kingswood. In Jamisontown, 38.6 per cent of units sold for less than $400,000, followed by Fairfield at 36.1 per cent.

It may feel like trying to find a needle in a haystack when searching for a unit below $400,000. As the annual pace of unit price movement slows and adjusts over the quarter it could create further opportunities for buyers to enter the market.

A granular look at the 2017 transactions illustrates that it is possible to buy a unit under $400,000. The length of time that a competitively priced unit lingers on the market, and whether it is in an area you desire, are different questions entirely.

SOURCE:www.domain.com.au