Sydney , is this the top ?

Just sold our Manly unit . Interest experience . When we first started the process we had an expected range and we ended up with 70 K more than our upper expectation , however just at the start of the campaign we saw some units selling at the upper limit or just above expectations , but a couple had those crazy auctions where they sold 2-300 K above expectations . During the auction campaign the agent adjusted the range they were quoting ( based on feedback ) up 50 K . We has our reserve 20 K below the upper level so sold for 40 K above the reserve .

Interesting thing was what happened during the campaign . There doesn't seem to have been an adjustment in buyers expectations that agents are now trying to get their quoted price range within the ball park , rather than 1-200 K below in order to raise competition . Several potential buyers expressed this to the agents and said they thought it would sell well above the quoted range and they were frustrated with missing out so they didn't proceed .

We had buyer 1 who was really interested and spent several hours negotiating changes to the contract on the day before , but she sent an email to the agents indicating she was pulling out the night before the auction .

Auction day , two people turned up for the first time and indicated they were interested in buying but they didn't have the money available for a deposit so they couldn't bid , but would have funds available on Monday .....

Buyer 1 rang up on sat pm and indicated she was interested , but suspected she was the only interested party and didn't wanted to buy in the auction situation . If she'd turned up , she could have picked it up 40 K less than we sold it ... and from understanding at a price she would have been happy to pay .

Despite our experience in property selling an auction is a very stressfull situation and we were really annoyed with her actions and decided we would sell to her unless she to her unless she made an offer significantly above any other bidders , not just 2-5 k above . She stuffed up our weekend .....

Monday morning and the two parties who had turned up made offers , one made the offer that was accepted and one made a cheeky low ball offer 140 K below . Signed and exchanged monday afternoon . 75 % above what we paid in 2011 . What we got can dois pay off two other units in our super , however SWMBO is very keen to renovate our PPOR so as we're going into transition to pension , we might take out enough to do that . She doesn't go on about it , but so far the only improvement we've made to our PPOR is the Man cave / recording studio........

My main observation from this is that I think the market has reached a point where these is a significant resistance to the prices being achieved in the market by the majority of buyers.

In Manly there is hardly anything on the market and unit prices went up 30 % last years ( though I wonder how accurate that is and it might just indicate more upper end units selling ) . From what I understand the two units that sold for 2-300 K above reserve where to cashed up downsizers who had fallen in love with the properties and were competing with similar buyers ,

I made a comment earlier about manly and wondered whether it indicated a blow off top and for me this indicates this is more likely .

Will be interesting to see what happens . In manly there is very little on the market and lots of buyers ( we had lots of people through , really liking the property ) but many seem to be reluctant to commit .

At the beginning we did fantasize about a price 2-300 k above expectations ( I also expect to win powerball whenever I buy a ticket ....) but that needs two highly motivated purchasers which we didn't have

In retrospect I wonder if we might have done better if we had gone with an offers above approach which might have got more buyers involved , but the reality is we're very happy with what we got and it does open up the possibility to renovate our PPOR .

Cliff

 

Congratulations @See Change on an excellent sale of your property.

I hope you are still invested in Sydney and wouldn't stop the hype

 

We still have our PPOR , our weekender at North arm cove ( which is going up as people sell in sydney and buy in lifestyle destinations , one unit in Manly and won't be selling those . Will buy again in the next trough , though don't know when that will be.

Cliff

 

Cliff did you buy land in north arm Cove and build or was there already a house on the land? I was looking at some lands in NAC but they have no dwelling entitlements.

 

Hi SC
thanks for relating the auction journey- I'm selling Bella Vista IP in Jan so closely following market. My read is although there will technically be a peak in Sydney market overall (and indiv. suburb peaks) don't think prices will fall off cliff after peak- interest rates are not moving up any time soon/ lots of foreign buyers still coming into Syd etc

You did gr8- nothing wrong with leaving a bit of juice in orange for next guy...

 

Don't touch those unless you're happy to camp on them . I don't expect you'll ever be able to build on them and don't believe anyone who suggests otherwise....

We bought a house on the water around 4 years ago . It's gone up around 30 % since then , but still below last peak . The previous crash was pretty ruthless in North arm cove . We pain close to half the original asking price on a place that had been on the market for around 4 years, along with most other place we looked at .

When the New Hexham buypass goes in , it will bring the journey to North arm cove to around 1 hr 40 mins .M1 Pacific Motorway extension to Raymond Terrace

When you consider you can buy a waterfront property at north arm cove for around same price you pay for a unit at corlette , which actually takes longer to get to ......( North arm cove , is freeway until about five mins before you get there )

Cliff

 

Wally , I'm not expecting a crash anytime soon , more , the heat coming out of the market and a period of sideways growth .

Cliff

 

Thanks Cliff. Helpful and I will take note on what's said.

 

Hi @See Change

Thanks for the great info. A weekender is definitely part of the plan. Will keep following your trail

 

Intersting. I know someone selling where you sold and they have 18 contracts out

 

I didn't bother tracking how many contracts went out on ours but there were a few .

During the campaign we had three seriously interested buyers who bought elsewhere , including one two days before the auction ...

Cliff