Inner Sydney - A lot more asking prices

Plenty of blue chip areas in Sydney suffered drops during the last Sydney stagnant period particularly in the Eastern Suburbs....but I guess its less noticeable when a property goes from 2m to $1.7m. I don't expect a drop per se, but I suspect there will be a lot of pain even if rates hit just 6%~

 

History is interesting isn't it @Simon L however we're moving so fast and buying environments and markets are so different now (even compared to 2004) sometimes it's difficult to make predictions, based on past events. CG in Randwick, for example (a pretty solid eastern stronghold) has only fallen twice in the last two decades 2004 (2% drop) and 2011 (hardly worth noticing at .6% drop) yet interest rates in both these years were around the 7-7.5% mark. Rates were actually higher in the 2008 period (8.5-9%) yet the suburb still grew. Ultimately it's more than IRs that drive the market and don't forget the buyers with bigger budgets are more than likely equity-rich from the CG they've already made in the past 10-20 years.

Good luck with your search and I hope you find something in your budget soon

 

It's interesting, the inner west has really limited stock at the moment, as @Jacque noted. However despite reports that prices have grown in Sydney this year. For properties that we are monitoring I would say prices are less than June-August last year which I would call the peak.
Will be interesting to see what happens come spring when you would imagine a lot more property will come up for sale.

 

Really ? We went to an auction in Castle Hill this morning for a 4 Bed townhouse with guide of $1.050 - Went for $1.3 mil ! Its an absolute joke !

 

That is just a crazy price for a townhouse....

 

I have been eyeing on outer inner west areas. Noticed quicker email responses from agents compared to few months ago. Also notice houses now are on price point sales or contact agent rather than auction. I have been randomly emailing agents to get an idea of market price. I was suprised last week when I saw the reply from agent that he may consider lower end offer (10% less) when I said the price point was out of my budget. I don't know the price was over inflated, he was testing the market or a bit slower season compared to everything else going on... I will have to wait and see with patience

 

Somebody must be very emotional

 

Not sure @Jenny but are you referring to the freestanding house in the Castel estate? If so then $1.3m isn't surprising here (though a robust result) as these homes are different from the average attached strata dwelling complexes, in that, from my knowledge, I believe they are all freestanding, so much more like houses within a community estate. Being detached, newer than most residences surrounding, well appointed and on larger lots than most CH townhouses (as well as being within easy walking distance of Towers and new station unde construction) this result is far from crazy.

Harcourts quoting here, though a tad on the low side, would have been based on the last recorded sale here which was just shy of $1.1m, however that home was also closer to Old Northern Rd and would have suffered from more main rd noise.

Given a real shortage of quality dwellings in CH and BH right now, especially for homes in preferred locations, the demographics of the area (lots of cashed up downsizers) and a still-healthy market this sale isn't surprising.

If I have the wrong property though, do let us know where as I'd be very curious! I do hope you find something soon however and good luck It's still tough out there for sought-after stock.

 

How's the hunt going Simon?

 

Yes that's the one and whilst I agree with most of what you say I still think 20% over agent 'guide' was a bit misleading - they would have known it was premium to the $1.1 sale & should have had the guide higher than that imo- Or does everyone in Sydney just build in an extra 20%~30% fat when bidding at an auction just in case? Just curious

 

When it was super super hot market that kind of underquoting would be normal. Right now you can get the odd property suggested that would sell for 1.4-1.5m sell for over 1.6m but its generally not as extreme as you saw.

But... I think there was a ~3.2mill sale in Eastwood maybe 4 weeks ago, it was not even a dev block.... that's not a price any property enthusiast would expect for that sort of property in the current environment.

All comes down to the desirability of the property and the bidders...

 

I always do my own analysis on what market value should be. Anyone that gets continually misleaded hasn't done enough work. Price guides to me have little value except maybe indicating what the reserve price might be.

 

Agree 100% with you @Jenny but sadly they're one of the agencies known locally for under-quoting in this area. It may have been misleading but that's the way they choose to operate. $1.1-1.2m sounds fairer and more realistic but I really can't comment on the outcome without having inspected the property. I do know that competition remains healthy for homes in this area however. Keep the hunt up and best of luck in securing something soon

 

Thanks so much, yes I suppose I sound a bit bitter, didn't mean to but I'm new to Sydney (from Bris) so still suffering from 7 digit shock waves We'll just have to go to the next affordable suburb - thinking North Rocks, Baulkham Hills maybe...shiny new suburbs of Ponds and Kellyville too far out Anyway don't want to hijack this thread so I'll go away now

 

So weird knowing that around year 2000 a good house in North Rocks near the shopping centre would sell for 300k... now they'd be ballpark 1.1-1.3m....

 

As much as I like to complain about agents underquoting, I think buyers contribute to this also.

For instance, we were super interested in an apartment in Sydney's east a couple of months ago- price guide $600k. Throughout the campaign, the agent called us regularly to gauge our interest and keep us updated with the price guide- we continued to say low $600's as didn't want to "show all our cards", even though we would have paid up to mid 600's (if not a bit more)- which I think everyone else was doing also. Come auction day, it went for around 700k, which is almost 20% over initial guide... but not that much over what we were "secretly" willing to pay.

 

But your response does reveal you were willing to bid... the agent needed that info...

 

If you need a BA give @Jacque a buzz. Her team recently helped secure an investment property for my mate in the Hills region.