As we move into the Winter months it is becoming increasingly evident that there is a long and winding road ahead in the Sydney property market. Headwinds are being felt in two key areas. Firstly developers are struggling to get finance to settle development sites across Sydney.
The major banks have pretty much vacated this funding space and finance that was obtained through Mezzanine funders and overseas investors is starting to dry up. The upshot will be that many very good high yielding development sites will come back on the market at a discount to prices previous paid by developers.
A great article by Christina Zhou in the Sydney Morning Herald, “Underquoting accepted as the new norm”
, discusses the issue we have been flagging for the past 12 months.
The impact of underquoting was evident with a brief for an Eastern Suburbs investment property. At an inspection for a 2 bedroom art deco apartment near Edgecliff
, the well know agency franchise had published a price guide of above $650,000. Knowing the market for similar apartments had been trading in the $750,000 to $800,000 range this seemed worth checking out. Continue reading
FOMO or Fear of Missing Out is driving buyers to the Sydney residential property market. It is understandable after seeing property prices in the $500,000 to $1.2m price brackets gain around 17%
in the past year. Our obsession with residential property means many buyers will jump in for fear of missing another 10% capital appreciation. A word of caution, be careful when the insiders are looking to sell.
Harry Triguboff and his company Meriton Apartments, the nation’s largest home builder
, have developed, built and sold more apartments in the Sydney basin than any other player. Continue reading
Sydney auction clearance rates topped 80% last weekend signalling a strong start to the Spring buying season. It’s not unusual to see a build up of buyer demand over the Winter months and September often unleashes a frenzy of buyer activity. It is interesting to note that suburbs in the north-west and inner west recorded spectacular clearance rates over 90%
With low interest rates likely to remain the norm for the foreseeable future, it looks like Spring has come early for many property sellers.
“By Shane Clinton”
After a 15.4% rise in Sydney property prices
in the year to June it’s little wonder that commentators including the Central Bank are keeping an eye on Sydney property. No one wants to see a speculative property bubble in Sydney property prices. However while the imbalance between supply and demand remains, Sydney property prices will continue to be robust in the foreseeable future. Continue reading
Another great morning for Sydney. Check out this magnificent waterfront property!
Buyer Agents, Investors, First Home Buyers and Home Owners are out inspecting properties, its another frenetic Spring Saturday! The statistics for the Sydney property market remain remarkable. Auction clearance rates hover around a bullish 85.9%
, 1 in 6 properties bought off-the-plan are Chinese purchasers
and of the total stock sold, 12.5% is purchased by foreign investors.
The Sydney property market is booming
. Ok so tell me something I don’t already know.
What is the hottest area in Sydney. Well if we look at the number of cranes dotting the skyline and development applications lodged with Rockdale City Council , Wolli Creek is the boom area
. It’s proximity to the city, 15 minutes by rail and serviced by its own station, close to freeway infrastructure and minutes to the airport, the only question is why did it take so long.
There is plenty of money to be made in the Wolli Creek Property Gold rush and it’s got a long way to go.
Sydney buyer agents might well be in disagreement about the start of a Sydney property boom but with clearance rates still around 80%
maybe it’s already upon us.
Lets look at the key drivers for a property boom. The Federal election outcome is looking increasingly certain for the pro-business Liberal Party. Mortgage lending rates are at historic lows, how about 4.74% 3-year fixed!
Property buyers have jumped into the market prior to the Spring selling season making it a “hot” Winter
. And finally stock shortages remain across many sectors with investors and owner occupiers in tight competition.
If indeed this is the start of something big then hold onto your hats as we approach the Spring time sales.
“By Shane Clinton”