Sydney house prices crash

Because 35 minutes under perfect conditions ends up being 1.5 hours in peak hour, each way, so 3 hours of travel to get to and from work. Apartment is a 5 minute walk each way.

Not to mention that 35 minutes is a $60+ cab home from anywhere if you want to go out, apartment is a short stumble or $10 cab. Go out on Friday and Saturday and that's $100 extra that house cost you.

You also have to consider that none or very few of your friends are going to live anywhere near you. I've got a friend who made this choice in Perth, the end result is he never hosts anything because of how far away he is, so always has to travel for any events, he doesn't get invited to last second things because he can't make it in time, the guy has to make an enormous extra effort just to stay involved because he just isn't there "for a quick drink", to walk on at golf courses, to go catch a movie or anything like that, every event he wants to be part of has to be planned in advance.

For a young person, I can repeat the same thing, I have no idea why anyone would voluntarily live that far away when you can get a CBD apartment for comparable. Really it comes down to lifestyle choices and what's important. Apartments are an awesome choice for people who enjoy socialising, nightlife, restaurant eating and don't enjoy public transport/driving to work. They can allow you to live without a car very often or with just one for couples, if you enjoy the reasons to be in the city, they're a great option.

 

Yeah I just looked it up on Google Maps, it's actually just under 45 mins from the city. Maybe you mean 35 mins by train?

45 mins is a fair distance, especially if there's traffic as wogitalia said.

 

Who knows ...

Maybe PC're are all buying in Hobart while talking Brisbane to decrease the completion ....


Cliff

 

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Same here
But only if they're sub $3m

 

Not at all true. I lived in Melton South quite happily and am in my mid-twenties. We commuted by train - 35 mins or so.

In Sydney, we decided to compromise on lifestyle so we could own our own (first) property. We commute an hour and a half here and the properties are far more expensive even that far out.

 

Of course, everyone's experience is different. But all the people I know in their mid-twenties want a yard/dog/space and are happy to not be going out regularly - we have people over instead. I'm very used to having a mortgage/hefty financial and carer obligations though, as well as spend most of my time working, so perhaps not a common perspective.

 

Received an update call today from an agent in the Holroyd area.

Was thinking of selling a unit mid-last year and provided a range $460-$480K.

Now advises I may get $420K and trend is downwards.

 

I doubt you could find anyone here who did not think units were in for a drop after this boom.

 

Not gutsy to call a crash but I'm sure things will come off 10-15% in nominal terms, which is probably 20-30% in real terms over a few years.

If you're levered you can still squeeze out an IRR assuming your cashflow with time. If you're unlevered, it's probably a poor investment for anyone who bought last 12 months.

 

Um, is 3% a crash or just a credit card fee?

 

The GFC or Great Recession as some seem to be calling it didn't give a 10 % drop in Sydney wide prices so I think it's unlikely that cooling at the top of a cycle is likely to give a Sydney wide fall of close to 10 % .

Lower SES suburbs eg 2770 DO drop more than 10 % in all the cycles I've seen or researched so I'd expect that to occur this time around .

Cliff

 

I'll just leave this here. Low volumes, but just for historical purposes after the "world is ending" reports of a few weeks ago.

Source: Confidence returning to a reviving Sydney home auction market

 

One thing to be aware of is that what gets quoted in the media at the moment are monthly figures , however historically we don't have access to that .looking at trends 10-20 years ago , we have access to annual figures .

Monthly figures will show greater volatility . They will show the peak of a boom that goes higher than the annual average , however I think it's inaccurate to start quoting monthly figures show a fall from that peak , because THAT IS NOT AN ACCURATE COMPARISON WITH PAST FIGURES , which will be based on annual figures .

Cliff

 

Yep.

Look at the trend data.

Rolling quarter or longer will tell the true tale.

I'm just glad the media aren't reporting on the "daily indicies" over at Corelogic.

 

Hahaha!

Me too. Kick it to me...............kick it to me.

I'll have a six pack please; actually make that a keg. Better on one title so there's less holding costs.

 

The Sydney market has ended. Just look at the lack of auction results Auction Results Sydney - Property Prices & Sales Results in suburbs beginning with A | propertyDATA.com.au

But really, we know there were record numbers of Auction in November and early December and volumes have not returned to normal. Still, even on the results at hand, it doesn't look like a crash.

469 Total Scheduled Auctions - 79% Clearance Rate

Auction Results Sydney, NSW - Latest Weekend Results

 

How do apartments help socialising?

 

I have friends in a unit that regularly go and socialise (yell) at their neighbours for the loud music.

 

Because nothing going on out there. Boring. Hence less demand

 

I lived there and loved it. I'd prefer to own my own home somewhere "boring" than own nothing at all and pay exorbitant rent in a fashionable area, but each to their own.