NSW Sydney Property Hype 2018

{Note - this thread continued from here: NSW - Sydney Property Hype 2017}


Sydney's not booming anymore. Clearance rates only about 59%.

However, from hearing people talk, FHB are out and active and looking. At lunchtime today I heard one colleague is looking to spend 750k for a house in the mid south west, close enough to Parramatta, Bankstown etc as a home to live in however prices where she really would like (near her parents) are around $1mill. She even said she'd like to buy her mum's house but it's not for sale and it's out of her budget anyway and she wouldn't want her mum to give up money if she would be able to get more if it was sold to someone else.

If she wants to buy then there's not too much that can be suggested. She could try going 1 or 2 suburbs (or more) further out, following the train line or alternatively go somewhere like the Blue Mountains. She said she herself wasn't against moving to another city, but her boyfriend wasn't so open to that idea because of work/career.

The conversation even got to to the point where she was thinking about new estates vs. old established suburbs and she was thinking the new suburbs have homes with less maintenance but not much land. Myself and another colleague suggested going old... paint and carpet doesn't cost much to do, and the land is really what is valuable.

In any case, I can suppose she's not an isolated case (my CBA Colleague was always looking around Parramatta area for more than a year). With this in mind, homes in Sydney metro up to about 750k will still have solid demand, at least for a while. The FHBs now have a chance since investors aren't buying.

 

So now Christmas and school holidays are starting to look like a lifetime ago and we all settle back into the work merry-go-round, has Sydney clearance rates started to recover or have they stayed in the high 50's low 60's.

 

I have been looking at suburbs along the Pennant Hills road (from Beecroft to Wahroonga).

Loads of houses still on the market from last year with sellers waiting to see early 2017 prices.

According to RE.com, Normanhurst is now down 5% from peak with average seller discount reaching closer to 10% in some cases.

It would be interesting to see what happens when this year’s inventory starts hitting the market.

 

Agree - above 1.5 million market is starting to bleed though. I wonder for how long people will be willing to hold 1.8 million properties which bring back only $800 per week in rent.

 

What were peoole thinkin' that is like 2.3% return...if that is the case some people will be ko'd

 

That area should benefit from the M1-M2 (North Connex) link... I reckon people haven't been thinking about it. But even tonight I was driving down Pennant Hills Road, this was after 10.30pm but there were still lots of large trucks, one after the other. It would be good to see them off the surface road.

 

Three visions for Sydney's density as 2.4 million more people call it home

"he said the research did reinforce the merit in the Greater Sydney Commission’s plan to restructure Sydney into three interconnected cities comprising the CBD, greater Parramatta, and a new city around the forthcoming western sydney airport."

“In Sydney’s case that approach comes through very strongly with the modelling we’ve done,” he said."

I know its a long time away but I will still be alive and kicking. Maybe I shouldn't sell any of my western Sydney homes at all will be worth a motsa when I'm retired.

Finally city planners are realising no point having workers commute to the CBD.

 

Syd auction results 70% - still pretty strong

 

is this achievable??
15 Bonney Place, Doonside NSW 2767 - House For Sale | Domain

 

I think that's asking a heck of a lot of money for Doonside.

 

Tell .em they are dreamin...for that price you get a run down place much closer to the city......

 

I have been going to auctions/opens across a few Northshore suburbs etc..

Very interesting observations:

- Prestige properties (over $2 million market) seem to be doing extremely well on auctions. One auction I went to had a price guide of $2 million and it got sold for over $3 million.
- Almost all of interest in the $2million+ properties seems to be coming from Asian buyers (Chinese/Korean bidders)
- Properties in the price range of 1.6million to 1.8million seem to be the worst hit. No buyer depth as it seems like banks have stopped lending local buyers for houses in this price range and foreign buyer is only interested in more expensive mansions.
- Under 1.6 million (mostly unrenovated run down houses) has slowed down but not completely dead.

 

Can you provide the link? Which house was guided 2 and sold for 3..... sounds like predatory advertising

 

Very interesting and quite consistent with what I'm seeing. I'm actually looking at houses in this area and have noted opens to be unusually quiet, especially compared to a year ago. A number of auctions withdrawn quite late as well.

Interested in your third point though? What do you mean by banks have stopped lending to local buyers?

 

What area is this?

 

Lower North is where I've been looking. Naremburn, Crows Nest etc

 

From what I have been hearing, banks aren't readily lending to those with existing market exposure or who are planning to take new big exposure i.e. over 1.5 million loans. They are making things hard by asking extra documentation or generally delaying approvals.

 

Its the same story from Epping Wahroonga as well. Houses just aren't selling unless they are worthy of being taken to auction and a foreign buyer saves the day. Over $2 million properties with some prestige element that would please the rich man who's buying it unseen and someday plans to move to Australia.

 

it's not a bad area, i live across the road. there are much worse places than D-Town.

 

Its not booming because the Govt has stopped chinese buyers and slowed immigration as well as slowed student numbers, we as investirs need more bodies !