Where to buy a house in Sydney for less than $800,000

Sydney’s western suburban region is now the only place left where you can buy a house for less than $800,000, new analysis has revealed.

However, with the number of suburbs at that price point in that region having shrunk to just nine, the window of opportunity for buyers is closing fast.

The majority of Sydney suburbs – 83 per cent, or 267 of the 321 on Domain’s database – have a median house price of at least $1 million.

Domain chief of research and economics Dr Nicola Powell says suburbs in that bracket are now an endangered species.

“We will get to the point at some time where all of the suburbs in Sydney will have a median house price of $1 million, and it’s likely to coincide with when we see Sydney [as a whole] smash the $2 million mark,” Powell says.

“With the [Sydney] median house price sitting at $1.645 million, it’s realistic to see a dwindling pool of affordable suburbs, and fewer and fewer of them sub-$1 million.”

Soren Sadeghpour of Stockton Grange says that price is one of the major factors driving people to property in the western suburbs.

$809,950 - $859,950

5 Araluen Avenue, St Marys NSW 2760

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“I’m sure everyone would go to Double Bay if they had the money, but they’ll probably be forced out [to western Sydney] because they have a certain budget they have to stick to,” he says.

“The challenge that Sydney has is containment of its geography due to the geographical boundaries of the landscape, the ocean and the Blue Mountains. This is where densification is needed for Sydney’s housing market overall to help drive that affordability outcome.

“Although, remember that when you’re talking about a suburb’s median, it means that homes are being sold around that price point, but there are also homes being sold at a lower price than that [suburb median].”

Kingswood median house prices

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10/61-63 Stafford Street, Kingswood NSW 2747

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In Kingswood, about 43 kilometres from the Sydney CBD, the median house price is $726,500, which can find you a townhouse or a villa, but not a free-standing house, says local real estate agent Daniel Palermo of One Agency Caddens – St Marys.

“A house would be around $800,000 to $950,000,” he says.

“With a $750,000 budget, you can find a three-bedroom townhouse under 10 years old, so a fairly newish style townhouse. Three bedrooms, two bathrooms, a single garage.”

In the past five years, Kingswood’s prices have jumped by 34.5 per cent, which Palermo attributes to new commercial developments in the neighbouring suburbs that border Kingswood.

“The main upgrades I’ve seen are towards a shopping centre at Caddens and upgrades to Nepean Hospital,” he says.

The majority of the buyer demographic in Kingswood is comprised of first-home buyers taking advantage of the cheaper property prices and investors, Palermo adds.

Mount Druitt median house prices

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56 Janet Street, Mount Druitt NSW 2770

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The median house price in Mount Druitt is $790,500, well below Sydney’s $1.6 million median.

Despite being 35 kilometres from the CBD, Mount Druitt is on the path to cracking a $1 million median in the future, Sadeghpour says.

“With the new zoning that’s coming in, or that started to come in, it will happen eventually,” he says. “We’re still a long way away from a million median price, but it will slowly inch its way up.”

In the past five years, more and more people have moved to Mount Druitt due to its more affordable prices, and the growing demand has pushed the prices up by 39.1 per cent, Sadeghpou says.

“It’s definitely a place that is going to experience a lot of growth in the coming years,” he says. “I’ve been telling people – I don’t know if they believe me – that Mount Druitt could be considered the next Parramatta in the next 10 years.”

Anyone looking to buy in Mount Druitt with a budget of $790,500 will most likely find a townhouse rather than a house, Sadeghpou says.

“If you want to secure a house, you’re going to probably start at $850,000 for something decent to move in, ready to go. If you want something extremely run down, I’m sure you can find it [with a $790,500 budget].”

Tregear median house prices

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38 Erebus Crescent, Tregear NSW 2770

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Tregear is 39 kilometres from the CBD and has a median house price of $750,000. 

At that price, “you’re finding a rundown house, and if the house is in good condition, they’re $830,000 to $850,000”, says local agent Ali Awad of Laing+Simmons Mount Druitt & Rooty Hill.

Houses that sell for around $750,000 “require at least $50,000 to $80,000 in repairs”, he adds.

The lower prices in Tregear have led to an influx of first-time buyers and owner-occupiers to the area as they search for affordability, Awad says.

“They’re purchasing at that [lower] price and then just making it their dream home, in essence, to put their foot in the door,” he says.

“So they are buying property in Tregear [to] live there for about four to five years. Then, they’ll sell and use the equity to move to a better area.

“[Tregear] is pretty close to Mount Druitt. It’s very close to St Mary’s, where all the developments are happening. It’s got potential, but it’s always limited by a bit of a stigma [of low socioeconomic housing], which is kind of going away.

“Properties are selling within the first few weeks on the market.”