Seven bedroom Sydney house sells for less than $400,000 as prices continue to fall across the city

A first-time home buyer with seven children has snapped up a seven-bedroom house for less than $400,000 in Sydney’s west as property prices continue to fall across the city.

The buyer bought the sprawling property in Tregear, a suburb 46 kilometres west of the CBD, at auction on Saturday. 

The new owner plans to completely renovate the run-down and boarded-up house, which has a private backyard and was pitched as having ‘immense potential’.

The auction started with an opening bid of $300,000, before eventually selling for $395,000 – only $15,000 above its reserve price. 

‘I find it’s quite good but it’s rare. If you put it on the market you don’t have too many seven-bedroom houses. It’s going to be popular,’ selling agent Basel Nahas of Laing and Simmons Mount Druitt told Domain.

‘You see some now sell under $400,000. 

‘It’s a popular price range and if the market improves you won’t see that anymore.’ 

The buyer bought the sprawling 607 square metre block with 19.8m frontage at 36 Mawson Road in Tregear, a suburb 46 kilometres west of the CBD, at auction on Saturday

Tregear is among the 50 suburbs in Sydney, where house prices are most likely to decline if Labor wins the May 18 federal election and bans negative gearing, according to a recent research 

Tregear is among the 50 suburbs in Sydney where house prices are most likely to decline if Labor wins the May 18 federal election and bans negative gearing, according to recent research. 

Suburbs like Liverpool, Wiley Park, North Parramatta, and Fairfield are considered the most vulnerable to further falls if negative gearing is abolished.

An analysis by the Real Estate Institute of NSW also indicated inner-city areas like Bondi, Glebe, Redfern, Camperdown, and Newtown would be hard hit. 

All these suburbs have at least half their homes occupied by renters – many at more than 60 per cent – making their prices vulnerable if investors pull out.

The new owner plans to completely renovate the run-down and boarded-up house, which has a private yard and side access for off-street parking for a boat or small truck.

‘The data identifies those suburbs that have a high proportion of rental properties and which have already suffered double digit falls in property values,’ REINSW chief executive Tim McKibbin said.

‘New policies that cause investors to exit will reduce the number of buyers in the market further. This in turn will escalate the losses in value even further.’

Median house prices in Sydney are currently around $780,000, sitting 14.5 per cent lower than in July 2017. 

Property prices are expected to reach 18 to 20 per cent lower than their peaks this year, according to experts.

 

Pictured: The 50 suburbs in Sydney where house prices are most likely to decline if Labor wins the May 18 federal election