Australian property market to rise to record highs this year

Madness. We're a teacher/sparky duo of similar age and were stuck 20k from the city! They're clearly not thinking of the next 30 years

 

Giddy up!!

I always have a laugh when one particular poster (not posting nowadays) in 2018 was saying Bondi was going to crash hard. Mmm hm.

Bondi Rescue's Bobby Yaldwyn sells Bondi’s most expensive semi for $6.5m

 

Yikes. Not sure that is the path id take but each to their own.

 

Sydney auctions: Sale of Darling Point apartment raised $1.7 million for St Vincent's Private Hospital 

 

Wow what a result!

 

I know eh...interesting times my friend.

 

Those with family already here may take up the offer but no way will 100k move here. HK under China will continue to be a high demand place to live and the only ones wanting to come here will be those with links to Australia or those that have poor job prospects in HK.

Also our current increases in anti Chinese racism (let’s not deny it! I still see it regularly but below early COVID levels) will turn many off. To go from a Han majority where other races are seen as ‘help’ and a lower form of life to a country where yourself is target of racism will be a massive adjustment.

 

Long shot and hope not but I reckon if China ever invades Taiwan, there'll be an influx of Taiwanese into Oz, Canada, US, UK etc.

 

@John_BridgeToBricks as a buyers agent in Sydney, how are you seeing the momentum/ buyer frenzy going atm?

In my area of Bondi, 2 bedder units seem to be getting hotter and hotter. Some are ridiculously hot. I'm contemplating selling an IP there in the next 3 months.

Just wondering how you're experiencing things on the ground presently. Getting stronger? Same good strength? Slowing a little? Different stock getting different attention?

TIA

 

Thanks Sackie,

In the last few weeks, I have bought one property in the Northern beaches, two in lower north shore, and one in Seven Hills. Some were off market, so hard to gauge market activity on those.

Overall, I think the market is still hot in the inner and middle rings, but less so further out (though it is all relative).

There are some signs that it is stabilising (I have seen a few properties surprisingly not get their price and pass in), but they are not common.

In Sydney growth was 3.4% in March, and it will be about 2% in April. So I think the market is still growing at an above average tick, but the velocity may have peaked (which I think was Tom Panos' point). Can't see prices going down though.

 

To answer your question: the market is hot, but not getting hotter.

As they say in the commodities market: the cure for high oil prices, is high oil prices.

 

Thanks for your feedback. I have similar suspicions re the current velocity of markets.

 

Article says its the first house they bought together so presumably, they have another at least that they may be planning to move into. Plus, with all the development around, they may have decided this house isn't suitable as a forever family home.

 

They said they had sold their IP last year when the market was down, took ages to sell and then after they sold it the prices shot up and they could of got heaps more for it. Perhaps they have a third property but it didn’t say.

 

Syd won't be 2% this month - It is already over 2.15% and we are only 16 days into the month. Syd is looking like it will smash past mar's 3.4% and will finish very close to 4%. Apr will deliver one of the highest-ever growth Syd has seen in a lifetime. It is tracking twice the growth rate of Mel, Bri, Ade and Perth so far in Apr.

The scale of growth is frighteningly high in Syd and given the momentum, I am 95% confident, it will overtake every other cap city this year to deliver the highest % growth for 2021 Vs all other cap cities by a country mile.

Having said that, Mel house value median was up 8.8% last quarter (as per REIV update today) however Syd is pulling its median at an incredible rate for both house & units market combined.

 

Hi mate, where do you find the data showing 4% growth for Sydney? I've looked into core logic back series data and it should be 2% according to them.

 

CoreLogic Home Value Index - Daily Indices | CoreLogic

The index was 182.67 at the end of last month and is at 184.79 as of yesterday, a difference of 2.12.

CoreLogic Home Property Value Index Monthly Indices - Sydney, Melbourne, Brisbane, Perth, Adelaide, Darwin, Canberra & Hobart

Just for yesterday alone, it grew by 0.26 alone - and it is tracking daily at twice the rate of other cap cities.

At this rate, it will be going up by 4 points (4%) for Apr.

 

(184.79 - 182.67)/182.67 * 100 = 1%

That's the increase so far.

 

Thanks for this - and apologies to John_BridgeTobricks - I have been doing the calcs as 184.79-182.67 = 2.12 and that is % so 2.12%.

My calcs are obviously wrong- so for my own understanding, each price movement on that index does not automatically translate into %? So for yesterday's 0.26 rise in index for Syd essentially works out to a circa 0.13% rise in values?

 

Correct mate, that value is an absolute number, not percentage.