NSW Sydney Price Correction 2018 - post examples

hey guys, how long do you think it will be till Sydney bottoms out?

We’re currently renting and looking at buying our ppor soon but I’m just worried the market is going to keep dipping and perhaps we should wait a little longer.

I would have loved to aim to buy another ip but I’m worried about serviceability with the current lending conditions.

 

Great Read. Funniest post on PC this week. Just when you think it’s all too serious, a great post like this brightens your day.
Thank you.

 

You’re right, The idea of looking out on pleasant bush land setting is horrible. Give me a 2 million buck home in Kellyville any day of the week so I can stare at a neighbors wall.

How are bedrooms on a ground floor unhealthy? I feel sorry for all those in single story homes now cause I didn’t realize it was risking their health.

Can we get back to posting actual examples of Sydney price drops now?

 

I'm pretty sure np was just taking the P!55

 

I’m pretty sure they weren’t

 

Yea nah

 

Sarcasm. It’s a gift.

 

The clearance rates and price falls are still accelerating downward, I don't think any economists are forecasting a bottom before 2020. Realistically unless there is a drastic unexpected change in gov/lending policy, I doubt we'll see growth in Syd until much later than that.

 

An intersting one in Pendle Hill. Sold last year in September for 866k.

45 Pendle Way, Pendle Hill, NSW 2145 - Property Details

Added 2 bed granny flat (rough cost 125k) and now sold for 885.

45 Pendle Way, Pendle Hill, NSW 2145 - Property Details

Loss of 100k+stamp duty and other buying costs+holding cost+selling cost

 

I'm really puzzled about this one! Circumstances may have changed hence the sale...

 

Ground floor rooms tend to retain humid air and collect dust, and if you sleep in these bedrooms for years, the chances of getting lung diseases is much higher (google for "ground floor health risk"). Not to mention noise/insects etc. Anyone who tried to buy an apartment would have noticed immediately that ground floor units are the cheapest (and also hardest to sell).

Having said that, I do feel that Asian people are more averse to sleeping on the ground floor, whereas quite a lot of people in Australia simply don't care that much. Some would even prefer to have a bedroom on the ground floor due to the difficulty of climbing stairs. Well, each to his own, I was just stating some facts.

As to single story homes, again, quite a lot of people prefer to live in single-level homes (it's even a selling point in some cases). But the fact is that a classic 4br 2-story home is generally more expensive than a single-level one of similar size. Most people in my circle prefer to have a 2-story home if they can afford one.

 

You know what, I, for one, prefer to have a solid house in Kellyville where I can stare at a neighbor's wall instead of the bush. And one family I know have actually moved to Kellyville this year from the bushland shire, and they, too, like the clean, straight streets in Kellyville, where house prices have dropped a lot.

A bush setting might be pleasant to some people, but to others it can conjure up images of pests/danger(fallen trees)/messy yard(when it rains)/maintenance headache etc.

I'm saying this with a straight face, no sarcasm whatsoever. Different people have different tastes, that's all.

 

More great comedy.
My favourite part is that a single story home sells for less than a 2 storey home if it’s the same size.

But the preference of a Brick Wall view to seeing nature is a close to second.

Btw you didn’t need to tell us what part of the world you come from, it’s fairly obvious from your post.

My experience is that you would prefer brand new painting and furniture rather than musty old antiques.

 

Gut feel, but I think we're getting closish to the bottom now. Though I expect it'll hover around the same price for years to come.

 

Yeah that’s the feeling that I get. I don’t think I can see it drop another 10% without a few interest rate hikes

 

Why is that? what has changed?

We still have

• Close to 360bn PI2IO expiry due in 2019/20/21
• Oversupply of units hitting the markets in next two years
• Current credit tightening likely to continue for next few years
• Fear due to trickle down effect is not yet baked in the cake.
• Rising bond yields, rising funding cost

In Syd/melb I was expecting fall of 15%(from peak) by late 2019 and further 5% by 2020. but we are already close to 10/15% fall in many areas and its still 2018.

The Speed of fall makes me wonder if there is more to it in syd/melb?

 

We all felt the same up here in Darwin....before it dropped another 15 percent....

 

Why? Falls are gaining speed and spreading. There's zero reason to expect they will slow any time soon. Even the RBA is showing their jitters publicly.

 

I will have to tell some of my relos who are near the century and have noted the ones that made that, but now gone, were all doing it wrong and could be around till what ? 120, 30 ? 40 ? if only they lived in a high rise concrete building.

Security comes to mind with ground floor, nothing else.....but in places like Bankstown the thieves carry rope and grapple hooks or climb downpipes, so none are that safe really, in a fire ground may be best spot, jumping from a few stories or more is not good for your bones

Anyway, stop with the vodoo nonsense reasons, that is why traditional Aussies do not care, because they don't buy into superstition or absolute rot !

 

Another $75000 slashed off the price!! Now cheaper than Baulkham Hills median!

West Pennant Hills continues to slide down further and further.

Interestingly, some of the suburb fundamentals have been shifted due to the Northconnex/Cherrybrook train station, both due to open next year.

1) Houses around the Aiken Road or houses with walking distance to Oaks Road M2 interchange traditionally did well (as long as they weren’t too close to M2). That whole pocket has become less desirable due to all the Pennant Hills road noise concentration now at Northconnex entry plus city express bus discontinuing mid next year due to the train station.

2) West Pennant Hills higher side (Around new line, Cherrybrook roads) have picked up as they will benefit from Dural buses redirection and removal of trucks from Pennant Hills road. I think real potential exists in houses around Victoria road as 642x will be redirected to Boundary road and then to Victoria road once the Cherrybrook station comes online next year. It will also benefit parts of Cherrybrook and Pennant Hills which are now cheaper due to Boundary road not having any express bus to city.

3) And the most premium part of West Penno (closer to new station and IBM) will obviously become more premium due to the new train station.

Some of these changing fundamentals are already reflecting in prices (see how Cherrybrook Road is becoming dotted with 1.8+ houses) but some pockets still offer a lot of opportunities as future of buses is still not clear.