Blow to home buyers

IN a major blow for first home buyers, property prices in the much talked about West Dapto urban development area could be out of reach of the average Australian family.

With development levies expected to push housing prices up considerably, average properties in the area could be selling for as high as $400,000.

Speaking at a forum organised by the Illawarra Property Council, NSW Department of Planning Regional Director Neil McGaffin said he believed it would be basically impossible to buy a house-and-land package for under $320,000, effectively pricing many local families out of the market.

"When it comes to the levies, it is a clear balance issue," he said.

"People's expectations have certainly changed when they purchase a property these days; they are expecting to have a lot of infrastructure already in place."

Earmarked as the answer to the Illawarra's residential housing needs, the West Dapto development is expected to deliver 19,000 homes, however, Watts Development Consultancy director Vic Watts believes that despite the large numbers of new housing in the area, younger buyers could still be left out in the cold unless something is done to make the whole project more affordable.

"This whole thing about West Dapto being a place for second or third home buyers doesn't wash at all with me," he said.

"We have to get back at looking to provide affordable housing for our children and that is not going to happen with levies the way they are at the moment.

"First home buyers cannot be expected to foot these massive levies. We have to look at coming up with some sort of other system because currently we are pricing the younger generations right out of the market."