NSW Sydney prices falling fast

Yep. This is EXACTLY what many economists are saying and my grandfather, my brother and my sister both in the UK are telling me living expenses through the roof but house prices are still rising steadily. UK inflation is crazy high more than Australia at around 7%+ now.

Their real estate prices are still soaring AND they've increased interest rates 3 more times!!!!!! currently sitting at 1%. So a total of 4 rises already and still cant tame the housing market.

UK house prices still rising. The thing everybody needs to remember is

1) The trillions and trillions and trillions of dollars that got printed suddently doesnt disappear does it? Just because interest rates rise this money is still around.

2) Inflation and diminishing asset prices DOES NOT make sense. Inflation causes assets to rise because the FUNDAMENTAL building blocks of services/materials and basically anything associated to build/fund a house is rising. That does not equal lower house pricing.

3) Supply and Demand. Supply is still extremely low for what is needed for the population. It cant and wont catch up for at least 10+ years the way the building industry is making houses.

4) Rental demand sky high and record low vacancies. Everywhere is pretty much at 1% vacancy or under now. Rents have risen 20%+ in most capital cities and 30%+ in some regional and lifestyle choice suburbs.

Yeah nahhhhh..............Australia house pricing wont see any major correction. Watch this space.

The more I think about it the more I'm certain and confident housing wont drop much at all in Sydney/Melb we may even see a reversal once ppl get accustomed to inevitable rate rises and they know its going back to 2%. At 2%-2.5% that is actually a very HEALTHY economy so everyone should expect it.

Brissy/Adel/Perth will continue rising this year and next.

 

https://m.realestate.com.au/property-apartment-nsw-botany-138629083

Sold for $631k in 2016.

This was advertised for 659k a couple weeks back and is now asking 609k. A unit next door which is is almost identical sold for 570k a couple of weeks back. Judging from comparable sales in the area these both would have fetched 600k+ easily at the beginning of the year.

 

That example is not reflective of todays house prices nor the environment. The last boom before this one eveything went up houses and units and peak of that was in 2016. Then there was a correction between 2017-2018 before most things plateaued off.

This current boom units have nowhere near went up anything like houses. I know plenty of examples where ppl bought units in 2016 and sold recently making a loss.

This example the owner bought at the absolute peak and he is trying to sell now when the unit/apartment market have not really moved at all in this boom. No surprise they are making a loss.

 

i just wanna say for the record, the stock market is no where near tanking, its pulling back, and headed towards the bear market, but its no where near "tanking". not even close to "reccessions percentage yet"

please dont read headlight numbers only.


i guess in another 12 months we can compare if

LAND is better than apartments or its all about LOCATION LOCATION LOCATION !

 

We'll see. Nasdaq at 11800 now. it was over 16,000 not long ago. Dow was almost 37,000 now sitting at 32,000. 1 day of green doesnt mean reversal. Entire share markets are in bear territory. Not only that all other speculative "assets" are tanking too.

Porsche's/Ferrari/Lambo's all recently suffered massive losses on the market in resale. Crypto is down the crapper hard. But yeah we'll see. My fund mates are shorting everything at the moment. But they are still loading up on real estate.

I'll bet my hedges Real Estate far far outperforms shares this year.

 

yearly is so short thinking,

i hedge my best over decades and I am only 35 years old, I don't care what the stock market does this year, I care when I sell.

and Nasdaq is at 11000 today, if it's half it's at 5500 it. That's like back to 2017.. that was only 5 years ago. if you hold for another 5 years you will be back to this point that is assuming you bought it TODAY at 11000,

and if you are a Nasdaq guy means the market is giving a discount, so BUY MORE!

also if you are so sure, feel free to short ! that's the beauty of the stock market

 

Sydney price increasing fast ???
Auction guide 1.69 but updated price is higher

 

Australia ranks second in the world for household debt. The UK ranks 12th.

We don’t have the overhead for increases, they do

 

From my family and friends in Sydney they arent seeing price drops especially in houses under $1.5M. I mentioned before my old man has a massive portfolio and he's looking to buy more right now. He's laughing everytime he hears someone saying Sydney/Melb will drop massively. He may be wrong but something is up when his fellow investors are also buying and there is a pretty large bunch of them.

Ahhh dont we all wish housing was as black and white as this. Housing never relies on a single measurement to determine where the market goes. Its far more difficult and inter-winded than that.

 

Agree. This stat is a good start to begin understanding it though

 

Not that I've driven around Botany in a year or two, other than Foreshore drive

But I know someone who recently sold a factory to a developer as part of a unit development, so if there's more "shiny new" units around lots of people prefer to buy those over older units, and investors often don't want to know because a heap of new units around may mean a higher vacancy....

Maybe the vendor had FOMO in 2016 and overpaid, maybe the building has issues like concrete cancer or it could just be a dud agent also, not saying any of the above is the case though, am just saying there could be many reasons for the reduction

 

It's still and always has been about location. This was my last apartment purchase and sale. Nothing spent in between except for $5k on the deck

Purchased - 31st Jan 2019 - $930k - Sold Apartment 3/66 Oaks Avenue, Dee Why NSW 2099 - Jan 31, 2019 - Homely
Sold - 23 Dec 2021 - $1.57m - 3/66 Oaks Avenue, Dee Why, NSW 2099 - Property Details (realestate.com.au)

 

nice one! 600k in two years... i honestly never seen anything like that.... prices went back to the ~ 1M range. https://www.realestate.com.au/sold/property-unit-nsw-dee+why-139499011

most are "contact agent" - hard to guess prices....

 

Nice gains! Great timing. Did you sell it to upgrade? Or do you think it has peaked?

 

Great example of in and out when necessary and not to get emotionally attached to an IP and that timing is critical. Congrats on the sale!

 

great result, well done. not your typical unit though, great location, small block of only 6, and has a land component/private yard/garden. far cry from the cookie cutter apartments most investors buy.

well done.

 

Mate, your family and friends have got their heads in the sand or simply are ignoring reality.
Sydney in some pockets have come off 10%-15% already with days on market increasing. I'd say there's actually nowhere in Sydney right now with any upward momentum bar maybe pockets out-west.

Corelogic index is starting to show a downward decline but the real time feedback I'm seeing on the ground is showing price drops well in excess of what any lagging indicator is reading. Sydney is on course for an aggregate 8% drop by close of the year if we use Corelogic's index as the yardstick.

 

A bit of both. Thought the market had peaked and was eventually looming for an upgrade

I’ve bought a house on the northern beaches since which probably wasn’t great timing but it’s a knock down rebuild, long term dream home type. It had a 9 month place in lease from a group of near horder a so thought it wasn’t far off top of the market in general we offered 20% under ask and got it for not far off that.

 

It was a strange one. The deck wasn’t on title nor was it exclusive use due to some oldies in the block not wanting to “give up” land. It was private and fenced/gated so essentially exclusive use however not being able to make it official probably cost me $100-$200k. Meant I bought it cheap for the same reason though

 

That’s a pretty inferior property I’d say. Wrong side of pittwater rd

i think it’s probably pulled back to $1.35-$1.4