68 Wehlow St, Mt Druitt sold for $1,066,000 at auction by Laing + Simmons Mt Druitt. Source: Supplied
MT Druitt’s property market is smashing the million dollar mark, with the suburb recording two residential sales of more than $1 million in less than a month.
Known as an entry-level suburb for families in Sydney, the recent sales are a sign that Mount Druitt is on the move as its big blocks attract interest because of their development potential.
On September 30, a property at 28 Paull St was sold for $1.1million and on Saturday, a home at 68 Wehlow St, Mt Druitt sold for $1,066,000 at auction by Laing + Simmons Mt Druitt.
The Wehlow St home is modest in size, between 50 and 60 years old and currently returning just $300 a week in rent, but 80 people turned up for the auction and nine registered buyers battled for the property.
The house is on 2024sq m of prime land a few hundred metres from the heart of Mt Druitt and close to a train station, hospital and a Westfield shopping centre.
Lang + Simmons sold this home on Wehlow St in July for $780,000. Source: Supplied
Selling agent Basel Nahas, licensee of Lang + Simmons Mt Druitt , said for the house to achieve more than $1 million was a sign of of confidence in the area.
He said Mt Druitt prices were increasing steadily and buyers could not rely on its affordability to continue.
“Prices are going through the roof. By the time you sell something, the next month when you try and use it as a comparable, it looks like it’s worth more,” he said. “Prices increase month by month.”
The median house price in Mount Druitt is $371,000 and in five years, values have increased by 21.6 per cent. In the greater Sydney metropolitan area, the suburb ranks in the bottom 15 per cent for median house prices.
A typical Mt Druitt street with smaller, older homes on large blocks of land. Source: News Limited
Mr Nahas said the Wehlow St property attracted attention from long-term investors because of the large block, equivalent to about two standard blocks, and its location.
“It had development significance to it. It was massive – (Blacktown) council had a draft zone on it to eventually put units on it. The minimum is 3000sq m to build units so it’s an investment.”
Mr Nahas said the investor who bought the property would continue renting it, but may buy homes next door in the future to develop and realise the land’s full potential.
“It’s in a good spot in what will be a high capital growth area and position,” he said.
He said the vendor was extremely happy with the result.
Neighbour Mark Eattell lives in a townhouse opposite the property and was at the auction.
“I was surprised but then again it’s a large block so obviously it will be redeveloped,” he said.
Mr Eattell said he expected unit developments on the street in the future, similar to other parts of Mt Druitt.
Mark Eattell Source: Supplied
Neighbour Kelly Barton said while she doubted the old house was worth much, the buyer got good value based on the land size.
“If it was a smaller block I would have been shocked but for that block, when you divide it and look at the price I think it’s OK for what they (the buyer) got,” she said.
She said the area was popular and Wehlow St residents were prepared to sell to investors and developers if the price was right.
Lang + Simmons sold another home on the street in July for $780,000, smashing the previous suburb record of $569,950, set in May.
Mr Nahas said strong demand in Mt Druitt would eventually impact its affordability but for now houses and units were still the cheapest in Sydney although “too many buyers are buying so there is a shortage of properties.”
Units prices, which had averaged around $220,000-$230,000, had increased by about $60,000, he said, and prices were likely to rise again next year with no signs of stabilising.
“Mt Druitt is a good suburb… for it to have all its amenities with good rentals and vacancy rate and the M7 and M4 – it all plays a big role,” he said.