NSW Sydney Price Correction 2019 - post examples

Discussion in 'Property Analysis' started by Charch, 1st Jan, 2019.

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  1. D&J

    D&J Well-Known Member

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  2. Oliver Shane

    Oliver Shane Well-Known Member

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    Prob more like 15-20% off peak considering previous sale was only in 2018.
     
  3. Oliver Shane

    Oliver Shane Well-Known Member

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  4. Oliver Shane

    Oliver Shane Well-Known Member

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    Anyone bought around here recently? Will there be the rental demand to soak up another 54 apartments coming online quickly?
     
  5. neK

    neK Well-Known Member

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    Cough Cough tunnel stack cough
     
  6. Lacrim

    Lacrim Well-Known Member

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    Is it close though? Doesn't look overly close.
     
  7. Alex123711

    Alex123711 Well-Known Member

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    What's a tunnel stack?
     
  8. Ben Chifley

    Ben Chifley Well-Known Member

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    An exhaust from a road tunnel.
     
  9. neK

    neK Well-Known Member

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    @Lacrim its 1.8km away.
    @Alex123711 an big chimney that takes ALL the exhausts from the cars in the m5 tunnel and exhausts it out in a SINGLE location....
     
  10. bumskins

    bumskins Well-Known Member

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    New apartments always seem to get rented, people will move out of older ones if it comes down to it.
    It is keeping a lid/negative pressure on the rents for older apartments but.
    Quite a lot of apartments coming online now to digest, but that was after a long stagnant period for construction.
     
  11. Redom

    Redom Mortgage Broker Business Plus Member

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    Pretty sure the tunnel stack won't impact the value of that particular home in Bardwell Park compared to its comparables in the area. If you want a 2km radius from that tunnel stack, i imagine half of Marrickville is hit too!

    Its partly timing.

    Compare the pair. Both of these are on the cheaper 'hillside' of Turrella, where its harder to access the station (walk up a mountain!). One street from each other. Land value is similar, albeit slightly different sizes.

    Sold at bottom in April before the election:
    - ~400sqm block, 880k, rundown home
    - Sold 14 Alexandra Street, Turrella NSW 2205 on 24 Apr 2019 - 2015133853 | Domain

    Sold last weekend, after rate cut & multiple 65%+ clearance weekends:
    - 1.07mill, ~480sqm, rundown home
    - Noting the value of this should be marginally higher than its 880k comparable (early to mid 900s).
    - Sold 17 Edward Street, Turrella NSW 2205 on 22 Jun 2019 - 2015313050 | Domain

    There's at least a 100k premium thats occurred here. Having inspected both...probably 150k.

    So many examples of this across large parts of sydney now. Difference between buying when clearance rates are in low 50s (slow) to mid/high 60s (rising).
     
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  12. Younginvestor2

    Younginvestor2 Well-Known Member

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    Pardon my ignorance about the area.
    But just by land size the latter block is 20% bigger. So my calculation says , based on the land value alone of the price of the former, the latter should be worth $1.056m
    That’s a WHOPPING $14000 premium after rate cut & multiple 65%+ clearance weekends.
    @Redom , have you considered a career move into journalism? Even my journalist friend is nowhere as good as sensationalism
     
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  13. pvfv

    pvfv Well-Known Member

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    Is property more attractive now definitely Yes but the property’s mentioned above are not really comparable even to the very basic buyer. More bathrooms more land brick value and many more are at play here. Infact I think the 1.07m seems a bargain looking at 890k achieved when things are bad with auction rates.
     
  14. Oliver Shane

    Oliver Shane Well-Known Member

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    Yes still big discounting around... clearance rate changing from 50’s to 60% and back to 50’s doesn’t change much.

    Volumes still 30% lower
     
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  15. marty998

    marty998 Well-Known Member

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    Those brickpit units are a bloody eyesore you can see from all parts of the Shire. The whole thing should be torn down.

    If they had put up 200 instead of 800 I don't think anyone would have minded. As it is, I haven't heard a single complementary comment made about that whole development ever.
     
  16. Triton

    Triton Well-Known Member

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    Thats not how land valuation works
     
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  17. Oliver Shane

    Oliver Shane Well-Known Member

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    Yep, will be interesting to see how much further prices will have to drop to soak all 800 apartments up.
     
  18. Empire

    Empire Well-Known Member

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    A lot of apartments nearly complete around Macquarie Park. Interesting to see how prices & rents play out over the coming months.
     
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  19. Oliver Shane

    Oliver Shane Well-Known Member

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    Yep peak oversupply will hit in about September... currently all the developers are holding back 30-40% of completed stock from sales market to maintain valuation so that ppl settle (don’t walk away from 10% deposit) but they will all have to go somewhere down the track.
     
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  20. Redom

    Redom Mortgage Broker Business Plus Member

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    This place just sold today for 1.22m too. For those that know this market and particular area, its noticeable price.

    Sold 22 Hannam Street, Turrella NSW 2205 on 28 Jun 2019 - 2014703396 | Domain

    It’s one of those ugly sales that have been on the market for 6 months + and couldn’t trade given lack of buyers who had a lot of choice. Basically the ‘low ball’ type Sydney place that’s been lingering around. Cool one to watch, as its been for sale with vendors that waited the downturn out and had offers during the low period.

    Probably could have got 1.05m in December auction near the bottom of the market (although there were no bids at its auction starting here). If owner was forced to sell, that’s what they would’ve got roughly. Mainly due to its frontage being on a loud main road, and just general feel/layout of the place not attracting demand in a dead market.

    Owners patience paid off, got another ~150-200k premium by waiting (peak or near peak price level again on this particular home).

    In inner (ish) rings, the last 6 week story is: big lack of stock, lots of buyers who want to get in urgently, prices have moved already. Not the story Sydney wide story as lots of pockets have oversupply.
     
    Last edited: 28th Jun, 2019
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