NSW Sydney Price Correction 2018 - post examples

The south west seems pretty stable at the moment and some areas still showing growth.

Supply is off the charts, new developments everywhere.
Density increasing as well.
Yet prices or demand dont seem to be lowering.

Most FHB seem being pushed out this way where prices can be half those only a few kms north.

 

I agree
$630,000-$750,000 550Sqm-650 blocks.

Not far from trains

SW Sydney may not grow much but i think it will be a very stable few years.


Liverpools apartments are going up daily. The density is sky rocketing.

I think Liverpool over the next 5 years will unrecognizable

 

Liverpool has a few more 30+ level buildings in the works.
It may soon be Uni-town

 

do both of you agree to each other as you make up on the forum?

 

Patience lil gunga dins.....he new l3nding policies are about to cut 5hrough the Sydney market ....2019 looks very bleak

 

Of course sooner or later prices will go down.

When I was posting about falling prices I also posted resales as evidence.
Till then its just speculation and guessing.

Why dont you post some factual argements instead of calling people liars.

 

Property Report for 307/18 Danks Street, Waterloo NSW 2017

2bedroom in waterloo $2.2m.

what correction ?








*this is not a normal 2bedroom*

 

Lets see....its only beginning......this particular apartment might struggle to get even 1.5m in a few years....watch the credit Tsunami.....

 

Great result but I would've fired that agent. Clearly the main aspect that separates this from typical apartments is the outdoor living and view. Couldn't come back on a clear sunny day for pics?

Also a bit silly they didn't spend a few thousand to add a sliding door system to retain the option of a 3rd bedroom. Could've been advertised as a 3, 3, 2 which would put it in a whole new price bracket, searches and potential buyers

 

oh man, the bathroom tiles, is that the new fashion?

I used to work at Waterloo in my previous job. man, $2.2 mil for a 2 bedder apartment.

 

LOL all good - just wasn't sure if you were pointing it out as an example of correction or not

 

Someone has seriously overpaid....they probably paid a lot in deposit so no LMI or val issues.....

 

Sold 2 Sunhill Place, North Ryde NSW 2113 on 24 Mar 2018 - 2014187751 | Domain

This one sold for 1.306mln at auction, attended the auction just to observe so I know the price. I'm pretty sure in 2016 it would have sold north of 1.5mln.

As an example, similar property, Sold 6 Beswick Avenue, North Ryde NSW 2113 on 05 Aug 2016 - 2012980353 | Domain, sold at 1.745mln in 2016.

 

https://www.realestate.com.au/property/24-warwick-st-north-ryde-nsw-2113

This one was for sale for some time, failed auction with the final bid of 2.1mln, vendor wasn't happy. It's off the market now but vendor paid 2.208mln in 2015 and didn't get even that price today.

 

Seems like a lot of areas popular for Asians have gone done now that there are less foreign money in the market.

 

Guys what's the general consensus at the moment, stay away from Sydney?

We missed the boat in Sydney and went to brisbane instead. As we currently live I Sydney we were thinking of buying here soon but the numbers just don't stack up. I was running some numbers on a potential corner block out west today and with adding a gf on there, 660-680k investment was going to return 5.5% yield.
Which sounds pretty crazy when you can do much better interstate with no capital growth in sight for Sydney at the moment.

We're currently renting in Sydney and were going to have to eventually buy out ppor but just doesn't seem smart to jump in right now.

 

It's a two speed market at the moment. Sellers who aren't in a hurry are still getting good prices but there are plenty of people who are panicking and selling at 10-15% below market.

A vast number of listings now include a price range which shows sellers still want good prices but they are willing to negotiate.

A good time to buy PPOR because there's no way you will be paying any less for the same house in 3 years or so but once the market stabilises a bit, you won't find opportunities created by panic.

 

Thanks for the feedback stand tall. It's much appreciated. So you would be of the opinion of 3 year flat market for Sydney? Wasn't into it at the time but didn't we see almost 10 years of a flat market after the 2000 boom?

 

I don't think domestic cycles work anymore. We are sort of part of a global cycle now and if anything Sydney is now following a yearly credit driven cycle where prices flatline at the start of summer among fears of a crash but lending picks up in May/June as banks try to close a strong year and as a result we see a quick frenzy all the way to August September.

Sydney prices have been almost flat in last 12 months. Interest rates haven't gone up that much or starting to come down. Regulators are also realising that big banks aren't even close to as evil as other financial providers such as brokers, financial planners and mutual funds are turning out to be when exposed by banking commission and this would lead to easing of investor loans. Some of the current prices in Sydney are actually providing fairly good value to what people paid in 2016-7 and hence it seems we are all set for normalisation of prices to 2017 levels again where they have fallen.

 

Thats an interesting comparison, the one that sold in 2016 has more development upside due to bigger frontage and land size, however that is still quite a premium price relative to 1.306m. They're reasonably close location wise so it seems that Ryde is slightly more affordable!

Good example of why it might be better to save now during a flat market as you actually get opportunities to find deals while the market is flat or declining, in a strong bull market everything is impossible to purchase without someone FOMO'ing in at a high offer.

Well they paid a lot for a new house, so it seems like its undergone $100 000 of depreciation in 3 years

The person who sold it in 2015 bought it in 2013 for $735k, that house could not have cost more than 600k all costs included, so made a very healthy profit margin.

a 3 year flat market makes a lot of sense, everything will depend on cost of money - i.e. interest rates - globally asset prices are all inflated right now because of such cheap interest rates, now is a dangerous time to be overleveraging, assume the worst and try and shop for a good deal! Don't stop looking, its always good to be searching for deals.