Homebuyers forced to go to extremes to get land in Sydney's southwest as report reveals block “shortage”

Homebuyers have been forced to jump through hoops or play a form of Lotto to get blocks in new estates in Sydney’s southwest amid a crippling land shortage and record demand for building sites.

It’s come as land prices soared this year at the fastest pace in 15 years, with a Housing Industry Association report revealing state government failed to green light new lots fast enough to meet record demand.

Housing experts said the southwest has been at the centre of the land crisis due to the promise of a second airport at Badgerys Creek pushing up demand.

MORE: Inside the homes of Aussie Olympic stars

There has also be a trend of home seekers ditching inner city-living for Sydney’s outer ring.

HIA economist Angela Lillicrap said low interest rates and government subsidies such as the HomeBuilder grant pushed demand up even further.

Developers have responded by reintroducing mechanisms such as lot ballots – lotteries where buyers have their name pulled out of a draw for the chance to get a sales appointment.

Other estates have charged buyers fees of up to $2000 for sales appointments, which are refunded if no sale ensues.

Homebuyers forced to go to extremes to get land in Sydney’s southwest as report reveals block “shortage”

Michael and Deanna Parzakonis bought a block of land in the Mirvac estate The Village in Menangle after their name was drawn out of a ballot. Picture: Quentin JonesSource:Supplied

Buyers paying these fees were often required to register for appointments online at a specified time – a system similar to that used for popular concerts or music festivals.

Developers revealed these mechanisms were put in place, in some instances, to prevent buyers from going to extremes to get new lots.

There were multiple reports of buyers camping outside land releases in March and April, including at one estate in Oran Park, where buyers queued up outside the sales office for four nights.

One couple camping at the release told the Sunday Telegraph they still missed out on the chance to buy.

And even with many of the control measures like lotteries in place, land has continued to sell at a lightning pace.

Homebuyers forced to go to extremes to get land in Sydney’s southwest as report reveals block “shortage”

Jake Strachan and Rhiannon Stowers bought land at Gledswood Hills estate The Hermitage, where about 500 people vied for 20-odd blocks. Picture: David SwiftSource:News Corp Australia

Residential builder Sekisui House held a recent land auction and it took just an hour for all the lots to sell out. One buyer at the release in the Gledswood Hills masterplanned community The Hermitage spent more than $1 million on a vacant block.

Sekisui House general manager Craig D’Costa said there was frenzy of buyer activity at the site. “It was quite feverish bidding on the day, the average price was around $750,000,” he said.

The land auction came just days after the Urban Development Institute of Australia released a report also claiming the NSW government had been slow to release land, which was holding up construction and driving up prices.

NSW Treasury itself announced in June that 42,000 homes would need to be built every year over the next four decades – or 1.7 million by 2060 – to meet growing demand.

Southwest Sydney is now earmarked to pick up some of the slack with NSW Planning Minister Rob Stokes revealing new land in the area would be rezoned.

Homebuyers forced to go to extremes to get land in Sydney’s southwest as report reveals block “shortage”

Land prices are increasing.Source:Supplied

About 18,000 homes could be built in Glenfield, Lowes Creek Maryland, Leppington and Wilton, of which 2700 could be ready in three years.

The Hermitage in Gledswood Hills will eventually be home to about 2500 new dwellings.

First home buyers Rhiannon Stowers, 23, and Jake Strachan, 25, bought one of The Hermitage blocks under the hammer.

“It was crazy, we definitely weren’t expecting how much demand there would be,” Ms Stowers said.

The couple are planning to build a five-bedroom house on their newly acquired block.

“We just thought the southwest had a lot more opportunity,” Ms Stowers said. “A lot of Western Sydney and the northwest are just so expensive … a lot of the blocks in those areas are just so small.”

Mr D’Costa said the infrastructure in the southwest was its biggest draw. “The airport is obviously a big trigger point in itself, but what that’s also done is provided stimulus for people to look at the region differently,” he said.

Homebuyers forced to go to extremes to get land in Sydney’s southwest as report reveals block “shortage”

Sydney land prices are by far the most expensive among capitals.Source:Supplied

Michael and Deanna Parzakonis recently bought land in Mirvac estate The Village in Menangle in the outer southwest and said hunting for a block in the southwest was “stressful”.

The couple were entered into a ballot with 300-odd buyers for the chance to get a sales appointment for one of about 30 blocks.

“Your number determines where you are in the pecking order,” Mr Parzakonis said. “We were the 40th pulled out and, luckily, there were other buyers who backed out, so we got a block.

“It’s ridiculous how much demand there is, especially for an area so far out. I’m just relieved it’s over.”

With additional reporting by KIRSTEN CRAZE

Originally published asLand buyers made to play games to get blocks

News Related

OTHER NEWS

NSW COVID inquiry to focus on west Sydney

A NSW parliamentary inquiry into the state’s Delta coronavirus outbreak will resume as more regional areas toggle in and out of lockdown. © Bianca De Marchi/AAP PHOTOS Twelve people have ... Read more »

Four arrested at Rookwood Cemetery as Western Sydney leader calls for fairer approach to funerals

© Provided by ABC News NSW Police say that a number of officers went to Rookwood Cemetery after reports of breaches to the health orders. (Supplied) Community members are calling ... Read more »

Mayor's clever trick to stop people cutting down trees for water view

It’s a long-time Sydney underbelly thing. With the city perched on the rises and drops of sandstone and guttered by harbour and sea, it offers a rich topography that presents ... Read more »

NSW records 1,351 COVID-19 cases and 12 deaths; Lismore and Albury LGAs go back into lockdown

© (ABC News: Rani Hayman) Authorities on site at the Redfern social housing site this morning. Large parts of regional NSW have come out of lockdown today but some will ... Read more »

NSW records 1,351 COVID-19 cases and 12 deaths

© 2021 Getty Images NSW records 1,351 COVID-19 cases and 12 deaths (Photo by Matt Roberts/Getty Images) NSW recorded 1,351 new locally acquired COVID-19 infections in the 24 hours to ... Read more »

Sydney news: COVID outbreak in Redfern social housing towers

© Provided by ABC Business A COVID testing clinic has been set up at Redfern’s public housing blocks. (Supplied) Here’s what you need to know this morning. COVID cluster at Redfern ... Read more »

Sydney NFT business Immutable raises another $82 million in Series B round

Sydney NFT company Immutable has raised $82 million in a Series B funding round, taking its total funding to $105 million. © Stockhead Australia Immutable The capital raising was co-led ... Read more »

Anxious wait on Queensland border as Sydney curfew lifted

© Getty The NSW-Queensland border bubble could be under threat after a school student tested positive to COVID-19. New South Wales border residents are on tenterhooks today after a school ... Read more »

Hotspots urged to aim for higher vax rates

Residents in the coronavirus hotspot areas of southwest and western Sydney are being urged to come out in even greater numbers to be vaccinated, as a curfew on the area ... Read more »

Six bedroom mansion with a glass boat shed for sale in Western Sydney

© Provided by Daily Mail MailOnline logo A luxurious six bedroom mansion that features a huge glass-walled boat shed despite being no where near the water is up for grabs ... Read more »

Sydney could be freed from lockdown a week earlier due to vaccinations

© Provided by Daily Mail MailOnline logo Millions of locked down Sydneysiders could be freed a week earlier than planned if surging vaccination rates continue to climb. Freedom Day is expected ... Read more »

Mum turned away from vaccination hub because she was carrying her baby

© Provided by Daily Mail MailOnline logo A mother who spent half the day waiting at a Sydney vaccination clinic walked away without a jab after being told she couldn’t ... Read more »

Sydney lockdown a 'tale of two cities'

Sydney’s lockdown has been “a tale of two cities”, an economic summit has heard, with people in its west suffering the most and being supported the least. © Dan Himbrechts/AAP ... Read more »

NSW records 1,259 new COVID-19 cases as state hits 80 per cent single dose vaccination target

NSW has become Australia’s first state to vaccinate 80 per cent of people aged over 16 with at least one COVID-19 jab, prompting a surprise easing of restrictions in some ... Read more »

Sex crime in Sydney airport cafe: police

A Sydney Airport cafe worker was twice sexually touched by a 73-year-old man in her place of work, police say. © Dan Himbrechts/AAP PHOTOS A man in his 70s allegedly ... Read more »

NSW records 1259 new cases, 12 deaths

© 2021 Getty Images NSW has recorded 1259 new cases of coronavirus and 12 further deaths, a jump in infections from yesterday. However, the curfew in high-risk Sydney LGAs will ... Read more »

COVID live updates: Ballarat goes into lockdown as Shepparton emerges, Sydney curfews end

Victorian Premier Daniel Andrews has confirmed the regional centre of Ballarat will enter lockdown at 11:59pm tonight, as the lockdown in Shepparton ends. Meanwhile in NSW, Gladys Berejiklian has announced ... Read more »

Photographer finds 'Jurassic Park' in Sydney

© Provided by Daily Mail MailOnline logo A photographer has shared a video of ‘Australia’s Jurassic Park’ after stumbling across a heavily graffitied dam while exploring his neighbourhood.  Andrew, who ... Read more »

Sydney hotspot mayor in 'disagreements' with NSW Premier over easing tough lockdown

© Getty There was a meeting between Berejiklian and 12 Sydney mayors yesterday. The mayor of a coronavirus hotspot in south-western Sydney said there “were disagreements” during a video conference ... Read more »

Iconic Sydney restaurant Golden Century set to be rescued from closure

A rescue plan to save beloved Sydney Chinese restaurant Golden Century from administration has been approved. The dining favourite could soon reopen after creditors voted to accept a rescue plan ... Read more »

COVID live updates: Sydney nursing home Newmarch House on alert after doctor tests positive

A nursing home in Sydney’s west, at the centre of a deadly COVID-19 outbreak last year, is again on high alert. A visiting GP to Newmarch House tested positive for the virus ... Read more »

Pharmacist overwhelmed with COVID vaccine bookings, as parents describe 'nightmare' process

© Provided by ABC Health A Newcastle pharmacist is urging local families to be patient as they desperately try to book their children in for COVID vaccinations. In addition to ... Read more »

Man allegedly assaulted in 'road rage' incident at COVID-19 testing clinic

© Getty A medical officer directs traffic and pedestrians waiting to enter the Ashfield Covid walk and drive-through testing clinic in Sydney’s inner-west earlier this year. A man has suffered ... Read more »

Western Sydney nursing home in lockdown as NSW reaches major vaccine milestone

A western Sydney aged care home where 19 residents died from coronavirus in the peak of the outbreak last year is in lockdown this morning after a fresh scare. Newmarch ... Read more »

Maitland hospital set to open in January with moving process to commence 'before Christmas'

© Provided by ABC Health Maitland’s new $470 million dollar hospital at Metford is on track to open in January 2022, with planning for the transfer of patients and staff ... Read more »

Sydney news: Fugitive back behind bars after 30 years on the run; fresh Newmarch COVID-19 scare

© Provided by ABC Health The man escaped Grafton Correctional Centre by hacking through the bars on his cell window. (ABC North Coast: Samantha Turnbull) Here’s what you need to ... Read more »

Hawaiian Airlines resumes flights to Sydney and Brisbane in December

© Provided by Daily Mail MailOnline logo Hawaiian Airlines is poised to resume flights to Australia – after an 18 month absence due to Covid-19. Flights will restart to Sydney ... Read more »

Dave Layzell pleads for Upper Hunter residents to be released from lockdown

© Provided by ABC NEWS It was a hard-fought win, says Deputy Premier John Barilaro (left), of David Layzell’s Upper Hunter victory. (ABC News: Andrew Whitington ) Upper Hunter MP Dave Layzell ... Read more »

NSW records 1,127 COVID-19 cases, two deaths

© ABC A spike in cases in Sydney’s inner west suburbs prompted the government to set-up pop-up vaccination clinics across the region. NSW recorded 1,127 new locally acquired COVID-19 infections ... Read more »

NSW records 1127 new local COVID-19 cases

NSW has reported 1127 new locally acquired cases of COVID-19 and two deaths, including a man in his 50s and a woman in her 80s. © Dan Himbrechts/AAP PHOTOS NSW’s ... Read more »

Woman, 81, allegedly defrauded of $25,000 in law enforcement scam

A Sydney man is facing multiple fraud charges, accused of cheating an 81-year-old lady out of $25,000. The 36-year-old was arrested after the woman visited a bank in the south-west ... Read more »

Affluent Sydney suburbs on the brink of mortgage defaults

© Nine Modelling by Digital Finance Analytics (DFA) exclusively for 9News shows one in 11 mortgage holders in Dover Heights is at risk of defaulting. They’re the unexpected suburbs on ... Read more »

Widow awaiting sentence for murder of boyfriend facing new charges

© 9News Natasha Beth Darcy is facing fresh charges as she awaits sentencing for murdering her partner Mathew Dunbar. The woman who killed Walcha farmer Mathew Dunbar in order to ... Read more »

Man charged with assaulting three Sydney police officers

© Getty The two women, both from the Transport Command, were taken to Bankstown Hospital for treatment. Three police officers are in hospital after allegedly being kicked and punched in ... Read more »

Mother tells court of tummy tuck gone bad

© Joel Carrett/AAP PHOTOS Brendan Russell allegedly left a woman bleeding heavily and writhing in pain after a tummy tuck. As her two kids got haircuts in a shopping centre ... Read more »

Yass going back into lockdown for two weeks just days after freedom

© Getty Images/iStockphoto Yass Valley is going back into lockdown for another two weeks. The Yass Valley Council area in regional NSW is going back into lockdown for two weeks ... Read more »

Removalists plead guilty after sparking COVID-19 scare in regional NSW

© 9News Removalists Ramsin Adil and Roni Shawka (pictured) and Maryo Shanki have pleaded guilty to breaching coronavirus restrictions. Three Sydney removalists who travelled to regional NSW despite one being ... Read more »

Sydney DV murder accused 'unfit' for trial

A western Sydney man has been found mentally unfit to stand trial for his wife’s murder, amid signs of delusional beliefs including that she “may have been a duplicate”. © ... Read more »

Bankstown mayor DEFENDS beachgoers who crowded onto Sydney beaches

© Provided by Daily Mail MailOnline logo A western Sydney mayor has defended the thousands of beachgoers who flocked to the water over the weekend – but hit out at ... Read more »