NSW Discounting in inner west Sydney

Hi, my hubby and I are keeping a close eye on inner west market and this one we have been following as it was in the media back when the property sun was shining on Sydney and now it looks like these people have lost 2-300K on this flip depending on build cost. Hubby estimates build cost is anywhere from 6-800K..

To be fair I dont like the design but nevertheless they have thrown a lot of money at this one and shows the perils of flipping and also waiting to long to sell. There were offers of 2.2 & 2.3 late last year...

Back when Sydney was bullish... 2.7mn listing

https://www.news.com.au/finance/rea...n/news-story/5359a80ab79f5885c4b0795c5d3aebc4

Now in reality of 2018, Vendors will accept anything over 1.95m apparently...

20 May Street Lilyfield NSW 2040 - House for Sale #128201178 - realestate.com.au

 

That's a pretty good example of what's happening I would say.

$2.7m was way over though...it should always have been priced south of $2.4/5m.

I also think there's a little bit of trepidation in Lilyfield/Rozelle due to the proposed Westconnex spaghetti junction.

I mean take a look at St Peters. You would not be happy if you purchased there a few years ago. The Govt has single handedly devalued the properties in that area. Take Goodsell St for example, which is arguably St Peters' best street. Tunnel will run under it now

 

Not an issue for that area of Lilyfield though.. if anything that area will improve with less traffic flow

Yes St peters / haberfield not good now during construction and wont be better post completion...

 

By the way i don’t have permission to post in Property Economics and update Sash’s thread with many Sydney examples’ sorry!

 

If the tunnel is running under anything more than 15m below you will not know it's their.

 

This time around surprisingly the Inner West and the North Shore have had some of the largest falls in values.

A lot of people thought Sydney was bullet proof this shows otherwise.....

Good post!

 

Yes that's what has surprised me too, how heavy the falls have been in some parts like inner west, and not too bad in others...

It appears that anything secondary ie on Main Street or needs Reno in inner west / or bad design like example above is getting very little interest..

 

Buyers will when they look at Google Maps. Whether or not you can hear anything, noone would opt to buy a property over a tunnel unless it was reflected in the price.

 

The areas which are taking a hammering are surprisingly suburbs like Newtown...Erskineville...St Peters....Leichardt....Balmain.

I reckon it is also starting to filter out to places like Dulwich Hill....Marrickville.

In the East I would be looking at areas like Bondi...Coogee...Vaucluse....Randwick..these areas seriously overshot in terms of value.

Lots of people on this site who thing houses will not fall..they have places in North Ryde...Bondi...Dundas...Parramatta these places will get absolutely hammered. The prestige market in the lower North Shore is in for a very rough ride....

 

could this be an overshoot ( in price during the past 5 yrs) and now normalising?

 

We had a mother of all booms.. see below...

The Mother of All Booms is Coming??

But I don't think we will have a mother of corection like the Limerick Isle.....but it will be quite harsh..especially in Sydney.....

 

what about Melbourne?

and what do you suggest investors with IPs in Sydney do?

 

I think this is a pretty fair assessment of what's happening on the ground.

Australian Property Market Report July 2018 with Median House Price

My personal observation (in the suburbs I know about) are that the drops are not swathes of houses. It's very much on a case by case basis in terms of how much.

For example, Newtown is a suburb I know down to the street level. I'm not seeing any seismic shifts in price en masse so far. You may find examples of houses that would have fetched 10% more 1.5 years ago but you'll also find a lot of examples (now) of houses that would have sold for roughly the same amount. Sellers' personal circumstances must have something to do with it.

 

Melbournes correction will be exactly the same as Sydney.

Worse train from Brisbane may not leave the station maybe crawl.

No one has a crystal ball

 

Melbourne's market continued to lead Australian house prices lower last week


Melbourne's market continued to lead Australian house prices lower last week

 

Westpac Economist: interest rates on hold; credit tightening
House prices in Melbourne expected to fall by 10 per cent


Category: | Herald Sun

 

Investors in both Sydney and Melbourne should have assessed their positions by now.

It is too late for Sydney....and Inner Melbourne.

Investors need to be out of Outer Melbourne by next year,..as I suspect that market will also stagnate a little but not to the degree of Sydney because of population growth and affordability.

I plan to sell down 2-3 out of 10 in Melbourne/Geelong..... ....not yet though......

 

Melbourne has a floor so long as there are immigrants coming there....but only for the stock in the 250-650k.

Brisbane is on an upward trend.....agree no one has a crystal ball...but if you have the experience you can get pretty close to the peak and trough...6-12 months either way. I called bottom around 2015..it was 2016..one year later......let see where bottom for Sydney is I reckon is it somewhere 2021-2022....

 

@sash
Why sell if you can hold?
if selling why not now then later?

I hearing about Melbourne land syndicates not able to settle the multi blocks and getting desperate, these are mostly freshly minted high leveraged types (many real-estate agents/brokers as well) who were in just for the gambling hit relying on the greater fool to offload.

 

Thanks