Bonjour all,
I’ve been looking for several months for a PPOR (house) around Newtown/Camperdown/Erskinville. Haven’t yet bought anything there because it’s been a bit out of my range. However, it seems to me that in the last 2-3 weeks, houses for sale in this area suddenly seem to be more plentiful and bit more affordable and also, many more properties seem to be for sale with a fixed price, rather than the usual auction deal. Perhaps sellers are realising the days of going way above the reserve price are going, going, gone. Finally, properties appear to be moving a bit more slowly than in the recent past.
All this leads me to conclude that this particular market may be finally slowing down – which is great as far as I’m concerned. Does anyone else think this is the case???
Thanks,
AnastasiaIm thinking along the same lines myself,
Newish (less then 5 yrs old) 2 br units in Bankstown are now VERY easy to get under $300 K some even under $250 K. in a recent real estate mag there was a 2 yr old 2 br unit goin for around $230 K i think!!! this must be below what it sold for originally?
Just my thoughts
Jason [
]Jason,
I have a “friend of a friend” who does a lot of developments in Sydney – he built several blocks of units (about 160 units in total from memory) in Bankstown approx 2 years ago. They sold from 205k off the plan to 249k towards the end…
Your assumption that they may have been more new is probably not far from the mark… []Anastasia: The Sydney market has definetly has started to slow in the last month or so – talk to any agent and they will admit that. I think the freakish run we have had for the last few years has finally started to slow down.
Many people are afraid of rising interest rates, and the talk of an imminent “crash” in real estate values has added further fear to an already over-hyped market…
Auction clearance rates seem to be slowing too…I don’t think the bubble has burst as such, but all the signs are there that the market has eased.
Keep shopping, there are bargains to be had in any climate… []Cheers,
Paul…“The only thing you get from looking backwards is a sore neck…”
From what I understand investors are now driving the Sydney market. First-home buyers have significantly dropped off in the last few months, making the FHOG less and less of an influence. This has to mean the end is nigh!
The Prophet
” this must be below what it sold for originally? “
yeah so much for capital gain?
buy an apartment which loses money from day one and then lose more when you sell it at a loss.On on of the richmastery videos, they had a speaker who is a Sydney developer. He says if you buy apartments with A-grade locations ie. water, views, north facing, desirable, you’ll be OK, but that in a slump, b-grade locations i.e. bankstown will suffer…
Hi all,
A friend of mine is selling in Surry Hills
6 months ago a 2 bedroom unit was touching 400k
Now its how much above 350k
It’s a grey area between 350-400k in the same 20 yr old block.It falls into the inner city unit catorgry but out of the “green square”, Alexandria, Rosberry area that the banks are not happy with.
I guess there is a little nervousness around at the moment
Cheers
G
I know of someone who recently bought a property at auction for $ 700 K yet the lender’s valuer saw fit to only place a value of $ 620 K on the property ‘because he considered that the
purchase price was too high’.This is unheard off as it is pretty well standard practice that a sale at arm’s length (certainly a sale at an auction) that the valuer automatically would adopt the selling price as the value of the property.
So yes it certainly looks as if prices may be in the process of stabilising for a while.
The market collapsing ? At this stage that is much too strong an expression to use.
Pisces133
Hi again,
Have just come home from an auction – I think I want to take back my earlier comments – at least temporarily… An unrenovated but livable-as-is-for-a-while terrace I liked that should have gone for around 530-550K in today’s market but didn’t. (reasoning for predicted price: needed about 100-120K work, similar house next door sold for 545K 2 months ago and fully renovated equivalents in the same street have been going for middle 600Ks) It actually went for 625 – almost 100K above what the owners hoped for originally. This is a typical example of someone paying more for the “renovator’s dream” than they would for the one that’s already been done up down the street. (Despite several would-be bidders in the room stating this quite audibly during the bidding process……pas moi – I’m too polite…).
This city’s willingness to pay top dollar for the chance to have a few months stressing about renovations, builders, council delays etc etc is REALLY starting to make me PEEVED!!Yours truly in frustration,
Anastasiahi anastasia
maybe there was something about the house that made it worth more than just the building itself, i.e. north facing, corner, bit more land, zoning, DA, etc
Keep posting on the subject, it’s really interesting!
watching the sydney market with interest right now…cheers-
miniI am looking at buying in Sydney for a residential terrace or converted warehouse to use for an office downstairs and residence above, since we spend so much time in Syd for the business (saves on accommodation also and should go a long way to eliminating our large tax bill). I was looking at Alexandria, though I preferred Nth Syd/St leon/Crows nest but cant find the right property. Anyone have any views on Alexandria or similar places where we can get the right building right floorplan, one that I can obtain a residential house in mixed zone that can convert back to ordinary res house with excellent cap growth?
Jars,
I know of some “rag traders” who operate out of a 2 level terrace at Chippendale close to Broadway & Broadway shopping centre.
Downstairs is storage & parking, upstairs is office. Seems to work well, close to city and the purchase price in 1990 would be puting a smile on there face now.
Cheers
Geoff
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