I was there the day the Sydney property bubble burst

Wow, that's expensive. Can't you get an actual house for around 1.5 million?

 

You can buy a middle ring house for 1.5mill!
And I'd choose that over a 3 Br apartment.

 

No, I meant in Marrickville specifically

 

Interesting...i am really surprised a place like that didn't sell...it looks beautiful in a period style. Any other reasons it didn't? 3mill tag for that much land is not outrageous.

Taking a break from my search in Melbourne's outer north and west, I accompanied a friend to an auction in his area - Hawthorn East 550square so more than half the land with a newish build sold for 3.5mill. I don't know Sydney that well but Merrickville looks even closer to the city than hawthorn? Melbourne still going strong I guess.

In Sydney though, is this the potential pattern of the boom phase stopping? The very expensive places slowing down first, followed by outer ring? Middle class strongholds tend to stay fairly stable I've read on other threads on PC.

 

I suppose if I had in excess of 3 mill to spend on a house, a Marrickville mansion isn't the first place I'd put it. I'd try near a beach.

 

I just did a Domain search... not much at all pops up up to 1.5mill. So while the answer could be yes, your ability to choose would be severely hampered.

General comment. I now see the home on the original post is listed at $2,995,000

 

It's all about cashflow. When you buy for no cashflow and no way to squeeze cashflow, you're going to be in a lot of troublr at turn of markets. But all rookie investors are happy to pay 1-2% yields.

 

These are just sold ones from the last few weeks:
115 Warren Road, Marrickville, NSW 2204 - Property Details
https://www.realestate.com.au/sold/property-house-nsw-marrickville-124623906
2 Charles Street, Marrickville, NSW 2204 - Property Details
27 Calvert Street, Marrickville, NSW 2204 - Property Details
40 Edward Street, Marrickville, NSW 2204 - Property Details

Obviously you won't be getting the biggest houses on the largest blocks in the area but a lot better than a generic apartment in a massive high rise tower

 

Hit the nail on the head

 

Dawn queue: Desperate first-home buyers line up for low price apartments

Maybe the buyers may be on a good purchase once the infrastructure is in place.

 

It is on two reasonably busy roads. Im not sure you would say main road. But almost.

 

Now that I think about it, is it possible that the response/enquiries from investors to the units been pretty weak, hence Mirvac using the "helping FHB" theme to market the units? One would think if there was a line of cashed up investors waiting in line Mirvac would have just done a normal launch or a VIP launch.

 

Could be! And it's also a clever marketing ploy. Smart thinking...

 

Foreign buyers snapping up 20% of new homes, stats show

Foreign buyers are purchasing new housing in New South Wales and Victoria at a rate of $8 billion a year - a figure the equivalent of one in five new homes completed across the two states.

The figures, available for the first time through a freedom of information request, come from state governments which now collect taxes from foreign buyers when the property is settled. The figures reveal the size, source and changes in foreign demand for Australian housing.

According to a new paper by Credit Suisse analysts Hasan Tevfik and Peter Liu, who filed the FOI, the data "implies foreigners are acquiring 25 per cent of newly completed supply in NSW and 16 per cent in Melbourne, or 21 per cent if we combine the two states". The total value of new houses in both states was $39 billion over the relevant 12 months.

Foreign buyers are restricted to only buying new or off-the-plan properties.

Credit Suisse's analysts believe Australian housing is at its peak in the cycle, with Sydney house prices having more than doubled since 2009 and Melbourne prices up 90 per cent. But they are hopeful the demand from China will moderate the severity of any downturn in housing prices.

"Investors could be too cautious. The data revealed by the NSW and Victoria state governments gives us more confidence that Australian housing will enjoy strong demand from abroad for some time to come."

Chinese buyers - defined as those from mainland China, Hong Kong, Macau and Taiwan - accounted for 80 per cent of the properties sold to foreign buyers. This makes sense because, the paper points out, while Australian housing is likely at the peak of its cycle, it's still cheaper than buying an apartment in China's major cities.

"It is hard for many Australians to think of property as a cheap asset, but from a Chinese investor's perspective, there could be plenty of value in Aussie housing," Mr Tevfik and Mr Liu wrote.

"The median price for a two-bedroom apartment in Shanghai is around $900k which is 25 per cent more than the median apartment price in Sydney. Also, the gross rental yield in Shanghai is a paltry 1.5 per cent and is less than half the gross rental yield for the equivalent property in Sydney. Yes, our property is expensive when we compare it to our own history, but it is cheap when compared to Chinese property."

The data, which is broken down month-by-month for a six-month period from July 2016 to January this year, shows that the value of settlements from Chinese buyers rose in November and December, despite the Chinese government having begun to put in place capital controls attempting to limit foreign investment late last year.

Local banks do not offer mortgages to buyers from abroad, so the rise in settlements towards the end of the year shows Chinese buyers were still able to secure the finance to complete transactions despite a clampdown on money leaving China. Further, more stringent Chinese capital controls were put in place in early January, the effect of which is not yet captured by the data released to Credit Suisse.

The average house purchased by a foreign buyer cost $1.04 million, but this figure was heavily skewed by American buyers, who spent around $2.35 million per property on average. Purchasing properties for around half the price, on average, were buyers from Indonesia, New Zealand, and the United Kingdom. Indian nationals spent, on average, just $420,000 on a property.

 

note that they claim the data covers up till january. However they only mention settlements up in Nov/Dec 2016 and make no mention of Jan 2017 settlements doing well, why??

Looks like Credit Suisse still have their party hats on, they must have a lot of skin in the game.

Their american branch was party in the American MBS subprime fiasco...
Deutsche Bank and Credit Suisse agree billion-dollar fines with US authorities

 

Bet you're chuffed, you bought very well in Marrickville IIRC from my Somersoft days.

Yup, one of the few credible ones.

Yup.

 

The politicians do a great job of withholding this information to the general public who are led to believe it's all about supply.

 

Land that big and no mention of subdivision or build your own dream home?

Very likely it's heritage listed given they are trying to talk up when it was built.

Also it's on a main road, so no it has nothing to do with any bubble. It's just too expensive.

 

What did u buy before? I bought at the VIP launch. I got my second preference for a 2 bedder. u are right, the 1 bedders were all gone very quickly I was told by my sales agent. The recent prices at revolution apartments at 955 and 980 for 2 BR were a bit surprising, in a good way.

 

2007? Prices were flat/slight decline from 2004 through to 2007, then the GFC hit, Rudd introduced the $14k FHOG and prices picked up from there, slowed a little in 2011-2013 and then BOOM!