NSW Sydney 2022 - Post a Bargain

Hi All

I believe @Whitecat said to start a post a bargain thread for Sydney.

@ParraEels mate you may have a few...

Others please feel free to post.

My view is track this as sentiment goes negative for the Sydney market. Lets see.....

 

I finally received my 'Black Friday' purchases yesterday - does that count?

 

Great idea @Whitecat & @sash,

I will post details of property if their price guide reduces or properties sold below quoted price guide.

It will be a bearish thread discussing/posting data that indicate the downtrend in the Syndey property market, so please don't give us a lecture on the last 10years performance, different markets within Aus, 7 years double etc.

 

That is the whole point ....to get the differing views.

Sydney is definitely on a downward trend....Brisbane, Adelaide, Perth, Darwin have some time to run. But I reckon Brisbane is next to slow...given how fast it has moved

 

Currently auction clearance rate is around 60-65%. Lots of properties (35-40%) passed in and stay on market and eventually compete with newly listed properties and vendors reduce the price range to invite new buyers. Some examples are below.

13/23 Glenvale Cl West Pennant Hills – drop $ 25k – 71 days on market
13 Savoy Court West Pennant Hills – drop $ 300k (from $ 2.3- $ 2.54m to $ 2m) – 99 days on market
74A Adderton Rd Carlingford – drop $ 60 k – (from $1.95m to $ 1.89m) – 119 days on market
60 Bambara Cr Beecroft – drop $ 120k – (from $ 2 - $ 2.1m to $ 1.88m) – 71 days on market
5A Hannah St Beecroft – price guide drop $ 600K, (passed in at auction on 17/11/2021 with vendors bid of $ 3.6m) Current auction guide $ 3m – 146 days on the market

 

Well I have a house in Sydney that I haven't made any money off I'm wondering whether or not I should ditch it and sit tight un till Sydney bottoms out.
But it has quite a good yield and there's transaction costs...
I don't mind it as a long-term hold because I like the position but I'm not sure about whether or not I want to sit there seeing it drop and stay flat for six years.
Hmmmmm.
Tough.
Especially as my capital position isn't fantastic.

 

I don’t put much value on guide prices - they can be a bit like hotel rack prices.

Be very interested if there are sales at less than the purchase price ( without all the “but they would have lost money after considering all these other costs”).

Monitoring a couple of areas for some real signs - both nothing yet, still seems strong.

 

https://www.realestate.com.au/sold/property-house-nsw-carlingford-138193686

Auction price guide $ 1.7m, Passed in at auction $ 1.5m, readvertise $ 1,695,000, Sold $ 1,630,000

$ 70k below the auction guide, Generally last year add 10-20% on the price guide.

 

Not a bad street...but power lines close by...owner was dreamin'.

So the owner took a 4% reduction off the reserve.

Will be interesting to see what places will sell at when rates hit 4%. Maybe will only worth 1.4-1.5m. Which would potentially mean a 12-17% drop. Lets see....

 

7A Queens Road, Asquith, NSW 2077 https://www.realestate.com.au/sold/property-house-nsw-asquith-138257654

Sold for 1.5

The land size is smaller for the suburb
But the initial asking price was above 1.6 m ( 6 months ago would have easily sold for this price )

So the vendor has at least had to reduce their expectations by 6to 7%

 

My question is if you can buy a decent house on the upper Northshore for under 1.5m why would you move to Baukham Hills?

 

Yes Sash
My main reasoning to look at BH was because I was completely priced out of Hornsby.
Which does not look like the case now.
I see the merits at both places , and am happy it looks like the market is looking favourable for now

 

You ain't nutin yet...huge Baby Boomer demographic in Hornsby who will be looking to downsize....that will get interesting...

 

Actually believed that there were no bargains - just the owner wanted more does not mean that is the market value and here are why they were okay to get that sold price:

1. No 4 - not a big deal for many other buyers but it is for those buyers in that area
2. HV power lines - not direct but not that far and on the lowside of the Marsden Rd
3. Not easy to turn right on Marsden Rd esp on peak hours and only one way in and out
4. Block not in good shape so no proper backyard or g/f or dev potential
5. For the sold price and below, only can get on busy roads or properties close to the HV power lines or duplex
6. Not that close to shops like Carlo Court or Village or schools
7. No decent public transport on that location too

oils aint oils but could be someone else treasure

 

Fair assessment on the property, but not so fair on the price.

A lot worst property has sold in Carlingford over the auction price guide (10-20% over).

3 months ago irregular shape of the land, narrow lot, HV line, sewer easement were not an issue and properties were sold unseen.

3-4 months ago agents were not interested in your feedback because buyer were waiting to secure property at any price. So it may appear that the property sold at fair value due to the points you identified. However, no vendor could have sold you at this price 3 months ago.

So the point I am making is that market is normalising . Nuts to normal.

Now vendor need to consider the feedback and very high probability that B grade property clear at auction.

There was a property I forgot the address (i think mimosa ave) that had 161 bids and sold $127K over the reserve.

 

I reckon Brisbane has a while to run yet...stock is so low and there is still a lot of depth in the market. It also still very affordable and off a low base ....hopefully at least another 15%. Propertyology one of the better analysts have predicted 27% this year and 18% next year....time will tell...

 

That would mean a median of over $1m compounded ...can't see that.

I can see the median hit 850k before it slows and comes off.

Median at the moment is 700k...so based on that another 22% growth....obviously some areas will overshoot this at the individual suburb level.

As for Brisbane being affordable....Melbourne is looking like good value again...when you compare suburbs 30-50 klms out....lets see....

 

By HV power lines do you mean this?
Didn’t realise these were a no go

 

HV lines are a big 33kw line. A big electrical easement is located toward Melaleuca Cres approx 150m away.

Electromagnetic waves are liked with blood cancer in kids. If you google it you may find both side of the arguments.

 

is the image attached an example of one?