Sydney Price Correction - post examples - part 2

Discussion in 'Property Market Economics' started by BoatArrival, 11th Nov, 2018.

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  1. BoatArrival

    BoatArrival Well-Known Member

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    {Note from mods - thread continued from here: Sydney Price Correction - post examples}





    Article full of examples of property corrections:

    High rollers suffering from Sydney market plunge

    ...
    Mr Ren, once dubbed the Northern Territory’s only billionaire, was forced to wave goodbye to $500,000 when he sold his Warrawee mansion for the still princely sum of $11 million.

    He had bought the vast home, dubbed the Chilton Hilton, for $11.5 million eight years ago.
    ...
    The grand six-bedroom residence had cost a little more than $6 million in 2011 and after adding in costs such as stamp duty on the purchase and estate agent commissions, Mr Meng’s losses would have been close to $1 million.
    ...
    In pricey Palm Beach, Christian Ainsworth whose family owns pokies giant Aristocrat — lost $400,000 on his beachside retreat.

    He paid $3,425,000 for the four-bedroom Ocean Rd property in 2013 and recently sold it for $3,025,000.

    “The vendor was very happy with the price achieved and the time frame,” BresicWhitney agent Adrian Oddi said. “Remember 50 per cent of Sydney properties have no buyers. The other 50 per cent might have one buyer. That’s the reality.”
    ...
    In nearby Whale Beach, retiring Dow Chemicals chief Andrew Liveris also took a big hit — losing $345,000 on his 110sqm property that slopes down to the ocean.

    Off-the-plan exuberance during the boom times has now begun to explode in the faces of those who looked to cash in.

    Last month online publisher Jackie Maxted lost $200,000 on the resale of a penthouse in the warehouse conversion of the Griffiths Tea building in Surry Hills.
    ...
    Even property experts have found themselves on the wrong side of transactions.

    The Block judge Neale Whitaker lost $170,000 on his stylish Alexandria apartment when selling for $1,535,000 earlier this year.
    ...
    And those who bought fixer-uppers with the intention of selling them on are far from immune to the losses.

    Fitness entrepreneur Jacinta McDonell sold her Clovelly project for a $350,000 loss last month. The Anytime Fitness co-founder never got around to developing the duplex-style Federation that was made up of two two-bedroom apartments.

    She just sold for $3.12 million, having paid $3.47 million a year earlier.

    “The price change was in line with the 10 per cent change we are seeing in the eastern suburbs,” agent David Tyrrell said. “The vendor was OK with the result as we actually feared the final price could have been lower.”

    BresicWhitney director Shannan Whitney said the idea of “list it and they will come” has evolved into a new dynamic: “Now it’s about finding a price that ensures you will engage a reluctant buying market.”
     
    Last edited by a moderator: 13th Nov, 2018
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  2. BoatArrival

    BoatArrival Well-Known Member

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    I think it would be more interesting to post examples of the biggest percentage declines. Because now, entire Sydney seems to have had price correction so it's like shooting fish in a barrel to post examples.
     
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  3. mues

    mues Well-Known Member

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    RE Agents can be weird like that. They often put too much stock in their ability to judge buyers over the phone. I do lots of transactions for work so talking price is pretty dry for me. That means when i talk to agent about houses i often don't sound that engaged. Even when i tell agents i am actively interested in a property, i have seen them sell them and when i see them down the track say "by your tone i didnt think you were actually that interested".
     
  4. sash

    sash Well-Known Member

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    2 years when I posted about the decline in Sydney..it was not like shooting fish.... :p

    Lots very emotional people got upset and would constantly troll and tell me that I was wrong. Now all I hear is crickets from them. Most of them were very highly exposed to the Sydney market.

    Some people have asked if it is time to get into Sydney yet....my response is that the market has at least another year of falls...before levelling out. And even then it will do nothing for another 6-8 years...so no rush.

    The falls in the West are yet to hit...hard...it will happen.....
     
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  5. Bender12

    Bender12 Well-Known Member

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    All markets peak and trough. It doesn't take a genius to predict a fall in prices after 5 continuous years of double digit growth.

    Where were you investing when Sydney had the mother of all booms? What happened to your crystal ball then? It seems the people predicting a crash are the ones that sorely missed out ?

    Has anyone noticed there is huge demand for rental properties at the moment? Not sure about the inner city areas where there is a surplus of apartments but I have had 2 properties go back on rental market and have rented them out on the first open with multiple applications and also rented out for higher than what I got previously.
     
    Last edited: 11th Nov, 2018
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  6. nswvic

    nswvic Member

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  7. Never giveup

    Never giveup Well-Known Member

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    I told her I am interested and went to see her and whatnot anyway another week of cooling off remaining with the winner Offerer.
     
  8. sash

    sash Well-Known Member

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    I already made a lot of money in Sydney...CC...Newcastle....Wollongong...you do seem to be emotional....

    As for rents....they are headed down also....;)
     
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  9. Lacrim

    Lacrim Well-Known Member

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    Where Bender?
     
  10. Whitecat

    Whitecat Well-Known Member

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    Agree
     
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  11. mues

    mues Well-Known Member

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    Where are all the “market within market” people? “Sydney is made up of 1000’s if markets”.

    Yah, but in general they are pretty connected and all cooked together. They go up together and down together. (Outside trophy homes)

    Just like the stock market. Some stocks do better than others in a bear or bull market, but 95% follow the trend within a variation.
     
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  12. berten

    berten Well-Known Member

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    Bummer, but hang in there, you likely dodged a bullet as you'll be in a stronger position the longer you wait. Clearance rates were abysmal again this weekend.
     
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  13. aving1001

    aving1001 Well-Known Member

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  14. icic

    icic Well-Known Member

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    that doesn't look like a 3 mil neighborhood though. The built look like a 800k house. So does the land really worth 2.3 mil ?
     
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  15. PandS

    PandS Well-Known Member

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    sound likes 80s and early 90s and it go on for another decade
     
  16. neK

    neK Well-Known Member

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  17. mues

    mues Well-Known Member

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    thats a haircut!
     
  18. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    It was 1.145 mn in 2016
    as per that suburbs median rise of 6% in late 2017, assuming it peaked at 1.213mn

    So a 905k sale price makes it a
    • loss from peak of 25% + 5% of additional buying/selling/holding cost
    • loss from purchase price of 20% + 5% of additional buying/selling/holding cost

    so a total loss of 25 to 30% in two years depending on how one measures it,
    For a 75 LVR loan we are looking close to a complete wipe out territory and some.
     
    Last edited: 14th Nov, 2018
  19. KinG3o0o

    KinG3o0o Well-Known Member

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    wah griffiths tea, i looked at it when its was selling OTP, though was expensive then but the designed was unique and people fell for it..
     
  20. Thedoc

    Thedoc Active Member

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    @eletronic_exp0430 the most notable getting upset when you called this @sash has gone very very quiet lately....
     
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