NSW Opinions -Sydney

Went to a friends auction who was offered $920k prior to the auctoin for a house on a 590sqm block.

I told her to take but she did not and took it to auction and it stalled at $870k..and with further negotiations it went to $880k.

The market is definitely cooling..I told her if she wants to see a high 8 in front she better get moving...I reckon in another 18mths - 2 years...it will be more like 650k for the same house.

 

which suburb @sash.

 

You never know but I doubt it.

Look at http://www.realestate.com.au/property-house-nsw-pendle+hill-120500777.
This is he closest to ours but better in many ways. It has 1 more bath. About 150 sqm more (total size 870sqm). Closer to the station.Better fittings. Much better GF with driveway all the way.
They had their auction on the 12th of Sept. Almost a month ago. Now asking for over 1.1 mil. I will be keen to learn what it eventually sells for.
We accepted 1.07 mil prior to auction. Another example that the market is slowing down.

 

@devank
Toony had a DA approved sloppy 800sqm block recently sell for 1.1mill...Yours was a much better property albeit without the DA.

 

No one knows what's going to happen next, so it's not worth pretending we do. However, being entirely cynical...

• The boom will continue for a lot longer than the bears expect.
• The bust will be worse than the bulls believe possible.
• Prices tend to overshoot on both the way up and the way down. So if the market has reached its peak, you could expect small falls.
• If property rises by 20% a year then volatility is such that it could fall by a similar magnitude in the same time frame.
• The market is illiquid, it generally moves slowly, and asking prices are often optimistic. It's also somewhat opaque as asking and selling prices aren't always published. We won't know whether we've made the right call for a few years.

If you want a more personal opinion, I'd say that taking a leveraged bet that property will rise ahead of inflation when the return is less than the holding costs probably isn't going to end well.

 

Buy low sell high that's what ma Pappy always told me.

 

Regents Park....the trouble is buyers have much more choice now..

 

The market in Sydney at present really depends on where you are and what type of property you are selling.

I attended an auction a couple of weeks ago in Melrose Park for a property that sold 2.25 Mil.

The market in Sydney is nothing like WA or QLD. What you have to understand is the reason why Perth went up in the first place was purely due to mining boom and nothing else. And thats the reason why it is going down now (and unless if the price of iron ore goes up) it will probably be a decade or more before Perth goes anywhere near where it was. The same is true for QLD to some degree.

Sydney and Melbourne on the other hand are entirely different for two reasons. Foreign investors want to live in Sydney and Melbourne (or view them as safe investments) and the economy is much more diversified as opposed to being reliant on one thing.

I would not compare the signs of WA and QLD with Sydney and Melbourne. Entirely different markets and entirely different reasons for them to move.

 

Hi all

3 weeks ago decided to sell our home...had too. Met 5 agents in 3 days... Most said not as crazy as before but buyers still around.

Attended open houses n auctions in Blacktown. Most still selling...less buyers but still selling.

Had our first open house last weekend, 10-12 parties through... It's now under offer before 2 open house... Our similar closest comparable house also under offer after 1st open house..

So still buyers around n it's not too bad here.

Regards

 

Mirvac had their land release down south west recently. 600 registered buyers who all stumped up $1000 for the privilege of getting their name in a barrel for a draw of 100 to purchase 60 blocks . See no buyers at all.

 

What are peoples thoughts on the North west (especially with the train line). The area has obviously shot up in prices heaps with all the talk of new infrastructure/development. Of course the area is diverse too from Castle Hill all the way to Schofields, riverstone lol. How will the boom/busy/slow down relate to properties along this belt where a lot of developments are underway?

 

The NW rail (now known as Sydney Metro NW) has impacted and will continue to impact, as is the case normally with infrastructure of this nature. Considering this is an Aussie first with Australia's longest rail tunnel and first automated driver-less train system, it's certainly exciting news for residents of this part of Sydney. See a couple of recent happy snaps from a sneak peek at the Castle Hill station this weekend- it's such a huge project!

Prices have increased (in some Hills suburbs) at almost twice the overall Sydney median during the same 12mth period (30% against 15% for Sydney metro) however part of this is obviously due to the proposed (and ongoing under contention!) re-zoning and increased land usage/dvpt potential of those pockets in the inner rings of the station surrounds. Having said this, it is a large area and one that stretches from Cherrybrook to Cudgegong Rd Station (just past Rouse Hill but not linked to Schofields/Riverstone, as this is a separate line) with variations between suburbs. It is still possible to pick up a freestanding house in the sub $1m median house alongside the line but I anticipate this will become more challenging, despite the media sentiment that the wheels are falling off the boom. Sydney is a huge and diverse market and therefore cannot be summised neatly into a generalisation regarding falling/plateauing prices.

Who knows what will happen? However, given the scope and weight of this rail project, I believe prices will hold steady and may well experience a further mini-boom closer to operation date. Time will tell....

 

@Jacque What do you rekon about Bella Vista? Are prices still strong in Bella Vista due to NWRL?

 

Absolutely teg499 though I would hasten to add that those properties with likely problems/compromised positions/ambitiously over-priced vendors will experience a cooling off as stock levels are increasing. We are seeing more listings than this time compared to last year, which slightly advantages the buyer as they can afford to be a little more picky. Anything walking distance to the new lines is still highly sought-after, and even more so if in a quiet location on decent land.

 

Good to know Jacque. I think houses in Matthew Pearce public school catchment is a good part of Bella Vista because of the school and should hold their value. BV is a nice area. Will be good once the railway is completed.

 

Sydney has one of the best housing markets in the world but the boom was never going to last forever. The factors that make Sydney so great have not changed, in fact they are improving. Infrastructure is happening, population is increasing faster than supply, unemployment is low, interest rates are low. Sydney is extremely resilient which is why I laugh when people come out talking dooms day for one of the best housing markets in the world for pretty much no reason.

 

Thanks for taking the time to reply Jacque, very interesting. There is just so much happening here. (Around the Kellyville/Rouse Hill area especially) in terms of development. I can't say they're all pretty though! Mini Mcmansions on 300sqm or even less land now.
Prices are insane too
Example : http://www.realestate.com.au/property-house-nsw-rouse+hill-120431953

 

Agree, what's classified as decent land now? I thought it was about 450sqm at the very least till very recently! but now they're advertising lot sizes as small as 250-300 and calling them houses!