Only one Sydney suburb has a median house price below $500k

By Leith van Onselen

Another report has been released highlighting the absurdity of the Sydney housing market, with just one suburb having a median house price below $500,000 – Willmot 50 kilometres west of Sydney’s CBD. From Domain:

It’s the end of an affordability era. After a five-year boom Sydney has just one suburb left with a median house price under $500,000.
The lone hold-out is Willmot, a small triangular suburb 50 kilometres west of Sydney’s CBD.

There are just 632 houses located in the suburb, which was established in the early 1970s and named for the first president of the Blacktown Shire Council, Thomas Willmot. The majority of the suburb’s homes are owned by investors.

It has been this feverish investor activity that has led to the disappearance of Sydney’s sub-$500,000 suburbs. At the start of the year there were four and five years ago there were more than 150…

The suburb’s median household income is $886 – $600 less than the median for NSW. Census data shows a quarter of households are paying above 30 per cent of their income in rent, compared with 12.9 per cent statewide…

I am constantly amazed that young Sydneysiders aren’t rioting in the streets with pitchforks against the deliberate government policies that have helped cause this mess and robbed them of a housing future.

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Comments

  1. Rioting! HA!! They’re not poor – they’re just temporarily embarrassed millionaires.

    • poor bstds,
      Imagine living in a sub $1 mill suburb, when you’re likely earning more than the $50k per yr?

    • I see that Bidwill makes the list………

      I graduated from Armidale Teachers College in 1980, young dumb and ready to do my bit to help make the world a better place for all. But into the teeth of a mean recession, we were unbonded graduates, meaning we had to wait for our names to come to the top of a waiting list before being offered a job.

      Meanwhile this happened;

      http://www.abc.net.au/news/2014-02-07/bidwill-a-suburb-in-crisis/5240962

      “Bidwill makes headlines with riots

      Bidwill gained notoriety in October 1981 after widespread media coverage of the so-called Bidwill riots.

      The Daily Telegraph’s headline read: “Savage Night of Violence: 1,000 Kids in Wild Rampage”.

      The newspaper reported that “1,000 boys and girls from rival schools fought a bloody, no-holds-barred battle that held a Sydney suburb in terror.”

      Sheesh, wild feral young ‘uns on the rampage……….more;

      “The western Sydney suburb of Bidwill has gone from a community where most residents worked, to one where more than 90 per cent are living on Centrelink payments”

      Guess where my first teaching job offer in 1982 was – you guessed it Bidwill, as district relief teacher servicing Bidwill and other schools in the area, told them to shove their offer up their collective arses. Best decision I ever made before retraining as a ‘Software Engineer’…..sounds so much better.

      90% on centrelink – hey but the damn bogans are making a motza on their homes.

      Cashed up bogans on centrelink – the worst type possible.

  2. Stewie GriffinMEMBER

    Young Australians are like North Koreans believing they’re living in a workers paradise – with no memory or knowledge of life “Before” unaffordability is the only reality they’ve ever known.

    • ResearchtimeMEMBER

      Like London, Paris, Tokyo, New York… Sydney is migrating into the big time.

      Even if there is a crash elsewhere, Sydney will tip, but housing unaffordability will rise simply because peoples ability to borrow debt will diminish.

      There needs to be an extra layer of analysis here. This is a long-term shift. We are a growing country. Will we have a correction??? Undoubtedly! … but it won’t be as deep or beneficial to locals as many hope for. Certainly 99.9% of people this website. In fact I make a prediction which will be 100% accurate, this next crash will exacerbate housing unaffordability. Not cure it.

      You are looking at the wrong data sets.

  3. Well they need somewhere for all the poor labor voters to live dont they.
    Certainly the new Chinese landlords of Australia dont want to have to look at them.

  4. Agreed. Why would they riot? This is a sign that everyone in Sydney is a millionaire, or will be when their parents snuff it. Congrats to Bubble Stevens and his magic money machine.

  5. SupernovaMEMBER

    Was reminded over the weekend of Irish property not long ago valued at 1,500,000 (Euros) is now 200,000 and a bank is offering 7,000 for the occupant to vacate the property….but cannot happen in Auz.

  6. They are like little scientologists. Not that gen x mouth breathers are much better. It’s cool to be dumb. With gen y it’s cool to think you are smart but actually be dumb. Pure unbridled Darwinism. It will be interesting to see what the next generation will be like, 50% white 50% non white. I wonder if they’ll have any self respect. They might want it but it will probably be still banned.

      • Gold – my old HD holden station used to go like the clappers off the mark with a bit of ‘choke’.

        Never mind you took your life into your own hands when going through a corner too fast.

        The HD part stood for ‘Highly Dangerous’

        I try to never pine for the good old days

      • http://www.abc.net.au/news/2014-02-07/bidwill-a-suburb-in-crisis/5240962

        Bottle shops are now the ‘Community Centre Hub’……fucking LOL….while the locals are ‘renting’ Real Estate Gold Mines.

        “No supermarket in renovated shopping centre

        The Bidwill Shopping Centre has undergone a $3 million renovation, but there is no supermarket: the owners have not been able to find a tenant for years. There is just one shop: a takeaway shop.

        “Growing up in Bidwill that shopping centre was a bit of a hub, there was the big supermarket,” Ms Carr recalls.

        “It was still a poor place, everybody bought Black and Gold then, but there was a newsagent and the doctor and the chemist and takeaway shop.

        “It was kind of fun. You’d go there after school and before school and get hot chips. But now it’s a shell.”

        The Bidwill Hotel’s drive-in bottle shop fills the gap for life’s essentials, including bread, milk, eggs and nappies, all alongside wine, beer, spirits and stands of lollies.

        The owner and publican declines the ABC’s request for an interview but allows a short visit without the glare of our television camera.

        Uniting Church deacon John Dasey says it is not ideal that parents have to drag the kids to a bottle shop, and it is also expensive.

        “That’s not saying anything against the bottle shop, just the reality that they can only carry limited stock and naturally it’s more expensive,” he said.

        “It’s very much a compromised position.”

      • @Bob Sickle
        The old HD had a bottle opener under the glove box, it was a punch out in the dash sheet metal, just to the left under the glove box, very handy in the old non screw top days

      • Yep remember well.

        On those long road trips the front seat passenger was also the designated ‘bottle opener upper’ – and when the stubby was finished, out the window it went.

        Although for safety precautions the designated driver was only allowed 6 beers

    • Makes me wanna puke….

      I believe my old mate Seamen Stains has been active in the lounge room and the bedrooms. Ahoy there matey !

      The only way to improve that dump is with a can of kerosene and a bic cigarette lighter !

    • Hunter80MEMBER

      Tim Ross or some other mid-century modernist lover might buy it for hipster cred?

  7. stagmalMEMBER

    100% Owen, noticed this as well. so many of my fellow millenials are so publicly and vocally so liberal and supportive of progressivism, equal rights and being a moralistic and good person, but in their PRIVATE lives, it all comes apart: they are absolutely deplorable. snarly, two-faced, catty and hateful. they use their education as an excuse to be indifferent or closed-off to any kind of views that oppose their own. it’s a dichotomy that has fascinated and appalled me in equal measure. They’re busy with keeping up appearances, but do not practice the type of “acceptance” and support they like to project.

    millenials are the “air” generation; air of morality without being moral, air of tolerance without actually being tolerant, air of intelligence without actually knowing anything or having any keen insights that wasnt dripfed to them by their university lecturers. it’s all about creating the impression that you’re a good and well-rounded human being, not actually being one.

    • Very well put. Oh well they goin down. Theyre getting nearly as old as gen x now. Tick tock.

    • I feel sorry for Millennials who have to put up with this sort of condescending attitude from their parents and bosses.

      Remember that home ownership among millennials is way lower than the average. Their debt levels are also way lower and they are more entrepreneurial. They will be picking up the pieces (and the cheap homes) when this falls apart.

      • stagmalMEMBER

        too right, their insistence on backing the ponzi has meant the house price has partially been a beast of their own creation.

        p.s i am a millenial.

      • Apart from the millennial tradesmen and their ute’s buying up the new estates in the outburbs with the money they ripped off old from old folk (they’re all rich you know) for moving their electric cooker 10cm to the left (my mother got stung $300 for this by a 12 year old electrician, I tried to trace him down but they know all the tricks) .. Or the privately educated millennials getting a deposit from their granny/parents and doing their best to pay the highest price ever in a suburban auction. This lot are in bed with the likes of Joe Hockey and scrotum Morrison.
        Millennial riots are not going to happen, they are so disconnected from one another that all you have left that should want to protest house prices and job opportunity are those that are most in need but incapable of organising anything much like our growing cohort of ferals or left-over unemployed bogans.

    • Not far from Bidwill.

      If ever the good lord was gunna give the world one hellova enema, he will be putting the tube directly into Bidwill

  8. You buried the lead.
    “The majority of the suburb’s homes are owned by investors.”

    How long before a majority of homes in a majority of suburbs are owned by investors?

  9. Ronin8317MEMBER

    After the Domain article, the number of <$500K suburb will be 0 next month. I expect a horde of speculators buying up everything in sight because it's "cheap" this weekend.

    • There are just 632 houses located in the suburb, which was established in the early 1970s and named for the first president of the Blacktown Shire Council, Thomas Willmot. The majority of the suburb’s homes are owned by investors.

      So just a matter of time before Wilmot joins the $1M club. Yay!

    • AlbyManglesMEMBER

      the displacement of Australians out of Sydney and Melbourne is an absolute disgrace and shows what a shithole this once liveable country has become

    • SoMPLSBoyMEMBER

      “…a recolonization.”
      Precisely Dan.
      All the former colonial powers (UK and European) are deploying one final, desperate, colonial ‘play’ to ensure the ROI for their politicians and trusted ‘advisers’ is superior even if it leads to self-destruction. The aftermath ( which will not be pretty) will just have to be faced by those unlucky enough to inherit the predicament.
      The UK & Eurozone are undergoing astonishingly rapid change via immigration and it is the same in Straya.

      What ‘was’ just a generation ago for each of these locations will never return as many falsely assume as the changes are permanent. In our case, as China struggles to produce enough food for her people while systematically destroying their environment, we’ll remain a popular destination for a long time to come. It’s a bonus for the Chinese that we’re so easily bought with fiat currency and are so accommodating as we don’t have Anti-money laundering (AML) legislation on real property.

      The preposterous absence of AML is proof positive that ‘we’ have consented to be colonized too and there is no going ‘back.
      http://www.bbc.com/news/business-40678191

      • I wonder if these old money types will survive. The alt right has fizzed out, thanks largely to these old money types preventing any actual sovereignty from occurring, now they have absolutely no credibility and the left will probably be in for a long time. What a bunch of idiots.

    • There’s been a few tall building completed in Parramatta since 2015, and more under construction. I’m sure its population has increased substantially since those 2015 figures (but might not be quite enough to fill all of those new buildings).

  10. reusachtigeMEMBER

    I just don’t get why you would think there’s any need to riot. Booming house prices are a much loved part of the Aussie way and we should be celebrating with copious relations (and are, I assure you). Thank you for helping to encourage Lower teh interest rates as it has fixed thing!

  11. QuentinMEMBER

    Well domainfax now running a story about growth ‘slowing’ in July. Was around 3% growth in June now a mere 2.1%…. or 25.2% annualised! Plus heading into Spring fomo season.

    The RBA quite simply, must hike.

    • Is it RBA or our immigration settings? I’d argue the latter, but obviously if you swing a blunt instrument hard enough it will work; but will also sink the economy into a deep recession.

      • QuentinMEMBER

        Both really. Immigration is a driver but the lowest interest rates in Oz history is certainly an enabler.

        But as the RBA is the only institution to show any inclination to end the madness (most govt policies actually make it worse) then that is the horse I’m backing!

      • House prices cratering in the likes of Darwin, falling in Perth, stagnant in some other cities. Not sure it is the answer for the ‘globalisation’ of Sydney and Melbourne.

      • Its both. Where you have a tight housing market prices will rise to the limit of people’s ability to pay, and rate cuts enable that to go higher. Where the market isn’t tight (i.e supply exceeds demand) people aren’t forced to extend themselves to outbid others, so rate cuts have little effect.

        Other factor revealed by the census is that the latest cohorts of migrants aren’t dispersing across the country as previous waves did, preferring to congregate together in big cities with others of the same community.

      • QuentinMEMBER

        You can discuss what is causing it all you want. It is ultimitely a hybrid of a basket of factors.

        But if Sydney still runs (as it has done in July) at 2% capital growth a month from already nosebleed levels the RBA is completely ignorant if it doesn’t hike. It must. This is rampant inflation…

      • We can agree there is strong price growth and multitude of factors, yes including low rates. However, interest rates are a very blunt tool and the broader Aus economy/property markets don’t need higher rates right now.

  12. Funny all this talk about migration. Canada had migrants too, so did the Gold Coast, ah? In fact, some years ago California’s internal migration was so high that they worked out it would empty out the rest of the U.S.???
    That didn’t stop their house markets cratering, did it?

    • Australia is v heavily urbanised to e.g. US. What you’ve got is essentially a funnelling of people/wealth into limited land areas in Sydney and Melbourne. Don’t need to be Einstein to see what that will do for land prices in these cities 🙂

      • So what about Miami, Los Angeles, Las Vegas, New York, Dublin, Dubai, Perth, Darwin. Tokyo ? Not enough urbanization for you? How about Toronto, Vancouver? Still not enough?
        Sorry, Australia is different – we have kangaroos!

  13. DominicMEMBER

    “Only one Sydney suburb has a median house price below $500k.”

    Mmmm …. smells like an opportunity to me!