NSW Sydney is absolutely insane!

Yep spot on....subtle signs are there....will be interesting to see what it looks like in mid 2018!

 

We checked out properties on the upper north shore over the weekend (e.g. Wahroonga, Turramurra, Pymble areas). Although property prices (houses, not apartments) are still high the sellers are agreeing to either a tiny discount or selling at "market" rate to achieve a quick sale. A number of houses have had their initial price guides adjusted (e.g. 2.1m to 2.05m or 1.8m to 1.75m etc). Word on the street according to other buyers and REAs that there seems to be a small plateau despite excellent auction clearance rates. Mind you the house prices in that area experienced huge growth throughout 2016. Interesting times ahead.
Also, not sure if this is relevant, but the REAs in the area are keen to get a sale especially when compared to REAs in Deception Bay and Kallangur.

 

RPT-Australia's home market boom may be starting to crumble as buyers hold back

 

Not quite sure what you mean by REAs more keen to get a sale in those areas.
I thought all agents keen to get a sale regardless of where, but for sure commission on 2m sale sounds way more attractive than commission on 300k

 

Not if you're on the board and deputy mayor like that wedding guy!

 

We sub lease out of the Century 21 office in Lindfield and can see a lot of the transactions and conversations and almost everything is coming back way higher than the price guides quoted.

If a price guide is adjusted/reduced then I would say that this is more due to unrealistic vendor expectation or the agent over promising a sale.

There are also some crazy sales above the $5mil mark.

Did you check out the sale of the 570sqm block on Reynolds St?

 

I'll check it out. Lindfield ' s property prices are insane. From my Rea sources Lindfield and killara

I'll check out the property on Reynolds street. Thanks for the heads up.

 

Im seeing the same thing in West Pennant Hills and Castle Hill. Properties are routinely getting 300-500K above the price guides...

 

Northern beaches the same. Unless vendors have absolutely unrealistic expectations an throng that goes to auction sells well over the bidding guide

 

@dan2101 are you currently looking in the area? What areas specifically?

I've been looking in the Northern Beaches for a while, mainly around North Narrabeen but things are too hot for my liking. Pretty much priced out at the moment and not willing to entertain those crazily high prices. Not sure if there is a slow down in sight. Some mixed results coming through of late though.

I wasn't at the auction but 11 Margaret Street, Beacon Hill had a price guide of $1,630,000 all the way through the campaign, now advertised as Sold for $1,960,000.

On the flip side, was at the auction 14a Maas Street, Cromer. Lots of people in the crowd, not a single bid and to be honest, I didn't even see anybody holding a bidders card. Whilst the auctioneer was doing his pre-auction speech, one of the agents came up to us to ask if it got passed in, would we be interested. Passed in on a Vendor Bid at $1,750,000, currently listed For Sale at $1,780,000.

Another that went to Auction last weekend 32 Powderworks Road, North Narrabeen. Again, wasn't at the auction but had a price guide of $2,000,000. Now listed for sale at $2,100,000 - $2,200,000.

Another at 62 Taiyul Road is currently listed at $1,600,000. No auction but the agent has called me several times in the last week. Hardly anybody through when we inspected albeit it was raining. Apparently has offers around $1.65m.

 

Hey Euro73,

The interest in the Hills district is unbelievable. Slightly lower entry point compared to the upper north shore and prices are going way above reserve and bidders guide. Home owners in West Pennant Hills are sitting on a goldmine!

 

Hey @schmick23

I will be selling a house at narraweena in 6 months so follow the area quote closely. I know what you mean it's crazy! Hoping it stays that way until we sell then crashes soon after haha. Don't think it will happen though!

At the moment I can't see a slow down as there isn't much for sale and heaps of people looking. Beacon hill is getting crazy prices at the moment. 14a Maas street is an unusual place. Looks a lot better in the photos than real life. I think it's a little overpriced which is why it's been sitting for a while. I'd be tempted to hold off if I were you but it's hard with the beaches there always seems to be high demand so it's a risk.

 

@schmick23 houses on Powderworks road are zoned for dual occupancy so tend to get a higher price. Haven't seen taiyul road but looked at a block of land there about 6 years ago for $540k. Still kicking myself! The blocks are pretty steep from memory though?

 

Its just about all upgraders at the opens and auctions... there has to be a limit to how many of them can spend this amount of money. I just have a feeling there is going to be a modest correction later in the year and into 2018

 

I agree with your view on the correction. There are people (especially young families) I know that are looking to sell their current PPOR (typically townhouses or units) and use the cash reserves and upgrade to a nicer house later this year. Re: houses in West Pennant Hills ... real estate.com.au statistics shows significantly more clicks compared to upper north shore. Good luck. I really hope u get one of those awesome Meadowbank or Binet homes.

 

I reckon just wait just that little bit longer.... vendors are currently not stressed as there are still buyers, but unrealistic sellers have to reset their expectations. But surely the upgrader market needs to run out of steam at sometime?

Btw, I think Pennant Hills is more "bullet proof" than Castle Hill as its a bit further east. Not sure about West Pennant Hills. Lovely big houses in WPH but imo its not quite as good for trains and transport in general compared to Pennant Hills and Castle Hill. It does get M2 buses though, (if you are close enough to the M2 access), and it will get the new rail if you are near the new rail.... btw my parents live off Oakes Rd and that is simply a bad rat run in the morning...

 

Either way, I don't get why people would want to pay so much money for houses out this far. It's purely silly "northern Sydney preference".
If you look at a map of Sydney, West Pennant Hills (median $1.6m) is exactly the same distance to the CBD as Bankstown (median $960k) for example. Nice houses in Bankstown, it's closer to airport, closer to the good eastern beaches, closer to "lifestyle" and activities in all the inner Sydney suburbs. Just an example, but the stigma of north vs south means people are paying stupid amounts just to be on the northern side. M2 buses, NW rail, wow . Look at the public transport on the south side that has been around for decades. The dumb folk paying huge amounts in the North are just catching up on basic 1st world services and infrastructure . Fools and their money.

 

North side is nicer?
I'm in this part of Sydney... leafy big blocks... nearly no crime.... I have a property in the Bankstown area too and that's gone up too. The area has a very different feel to it though.

Cheers I will say... being within CBA is good though... I can recommend CBA as a place to work. And jobs are available. All teams are different though and it depends on who you work with. .

Feel free to meet me in person for a chat?
PM me. I know of roles available

 

See, the southern stigma . Crime ridden hell holes down south, etc.
Northern Sydney has gone totally stupid this cycle. Will be a significant correction there in the bust phase. Livable Sydney - Bankstown ranked 272 West Pennant Hills 292, Castle Hill 312, Cherrybrook 359! . All these fancy expensive suburbs score less on the "liveability" index then the "non cool" southern suburbs. But fools will pay more up north.
Sydney’s most liveable suburbs – Domain Liveable Sydney 2016
Based on 16 factors taken into consideration.
What makes a suburb liveable?

Nah, done CBA 4 times over the years. Enough. Gotten worse over the years. You have not worked for a good place, if you think CBA is still good (was really good up to about 2008). I just work there on occassions cause they still sometimes pay OK (when the Indian outsourcer, or some incompetant long term perm have stuffed projects up). ($850/day contract rates, or approx $191K prorated salary).

 

Harris Park the best in the west! (ranked 63 ).
I could've told you that! It's a great little place to live.