Castle hill selling 23% above

The following 2 properties in sydneys hills district sold today at auction for around 23% over what was expected.

What your thoughts on this? Is the market really heating up that fast? Is confidence really that high?

1st property glenhaven feed back a couple months ago was they would get 1.8m-1.9m
SOLD $2,215,000

2nd property kellyville feed back was they would get around 1.3m
SOLD $1,631,000

Cant get my head around it and wonder what the PC's community's thoughts are on this.

 

Who's feedback and expectations??

Feedback and expectations aren't bible

Let alone if it comes from an agents mouth

 

The estimates are calculated using statistics... and they can be very wrong.

 

Feedback from who?

One needs to do their own research/ Comp analysis.

 

My partner is a agent, property 1 that went for 2.2m was being sold off market, bites they were getting from potential buyers were around 1.8-1.9m went to auction and got 2.2m

We are having a little debate about it lol i wanted to know where she gets the 1.8m & 1.3m figure as i am very sceptial somone payed 23% above market value for both these properties. I did a search on pricefinder and rpdata to try get some info on the properties. Doesnt make sense to me. I attached photos from pricefinder and rp. Thought id get some insight from you guys on this.

 

Markets within markets is my guess, RPdata could be postcode wide, where there could be streets which are more sort after.

Have you tried to find comparables?

 

Yeh not much to compare atm, low stock that could be why, there was these 3 attached.

 

Market is what someone paid for it. That just means the estimate isnt very good.

 

Off-market = a fishing expedition by RE agents (whilst waiting on the contract to be finalised) to determine where to set the reserve or selling price.

 

Automated Vals use complex algorithms which amount to little more than a WFG.

http://globe.six.nsw.gov.au/Propert...ml?type=suburb&postcode=2156&suburb=GLENHAVEN

Going through the stats above, (with no BS filtering admittedly), take https://www.realestate.com.au/sold/property-house-nsw-glenhaven-127476294 a 4/3/3 house on 861 m2 and only a couple of minutes away, sold 14/04/18 for $2M (not peak market), newer than your first example but smaller.

As for 7 Zachary Pl Kellyville, it is zoned R3 Medium density. It was an off market sale, who was the buyer? ie was it the neighbour who now has a medium density site which meets council's requirements for redevelopment?

 

If you flick through the comparables, it's theres a large spread of different types of properties, with a lower quality homes. So an estimate based on sold properties would probably underestimate the probable sales price when the market is fairly hot.

Also this is a upgrader dream home. These people have more resources and are willing to spend the money.

The ad for 31 Cairngorm includes a few photos and floorplan from 2012, for some reason. The reno is a total transformation. Look at that kitchen. They combined the dining, living and kitchen together to make one huge kitchen space with that massive island. Turned the lounge into a tiered media room. The pool is new. All the doorways were enlarged and a lot of internal walls taken out. The balcony and alfresco areas have been extended.

This is the sort of house you walk into and it just blows you away because it looks so much newer and better inside than from outside.

 

Well spotted i did notice the reno, havnt looked at to many comparables yet as i have been at work all day.

 

Not sure on who the buyer was for 7 Zachary Pl Kellyville, i can try find out

 

Both far above what I would expect but we have friends that have sold on a busy road in Kellyville for close to $1.5 after pulling from sale a year ago.

Glenhaven falls into Castle Hill High, it's a nice pocket, lots of OO, little stock, low interest rates. $2m used to buy something special there, maybe not anymore.

 

Its crazy, same property sold in 2012 for $940k

136% increase in less then 8 years or 17% a year.

 

2012 would be the start of the boom. With that sort of renovation, less than doubled on cost. So roughly in line with the wider sydney market.

just shows that a boom is great for renos too.

 

Your maths is wrong

 

Simple and compounding growth rates are not the same thing.

add in the six figure reno? Maybe 8-9% compound increase a year. Which would already be an incredible boom. 2012 would be almost perfect timing for this sydney cycle.

jembuss, you have to realise that you lack a lot of basic knowledge. Keep reading and learning.

 

$940,000 to $2,215,000 in 8 years is a indeed 136% increase.

No 17% a year is not compounded just the average 136% over the 8 year.

No this does not account for renos or money spent on the property in that time.