Sydney - the coming correction 2018-2022

interesting article about recent foreign investor sales and migration trends

Developers say new rules for foreign investors are hurting Australia's property market -- here's what the data says

 

So pretty much the only buyers of Harry's one bedroom shoeboxes are overseas investors. He should roll out the red carpet for them and drop the prices

 

Harry Triguboff and friends complaining seems to be a regular occurence.

I wonder if they'd have more luck selling to locals if they actually built habitable properties, rather than trying to maximise profits.

 

their/his purpose is to make money ? ?

 

Building a desirable property and making money are not mutually exclusive.

 

richest man in australia. private company. not public listed. self made

 

Interesting ..channel 9 reported that there will be an oversupply in Blacktown, Parramatta, Camden, Bankstown, Kogarah/Rockdale areas.

Whilst this was happening there was a undersupply in the North (Willougby) and Eastern suburbs.

Interesting indeed....hearing that prices in Castle Hill and Cherrybrrok has come off a lot.

Here is a recent one on large block which went for under $1.1m....interesting...

6 Chainmail Cres, Castle Hill, NSW 2154 - Property Details

 

There has to be something wrong with that property to go for that price or the price listed is incorrect.
Although I agree prices r reducing, There’s no way you can use that property as an indicator of dropping prices when there is clearly something wrong with the sale price.

 

Yes, there may be a zero missing...

 

Maybe buy seeing more and more of these...that is what happens when a market corrects. Yes boyees and gals Sydney prices do come down...maybe a lot...

 

This on was on my watch list fell off my chair when I saw the price initially.

 

More news on falls....places like Olympic Park are not brainers..matter of time when it shows up on the stats...will get even worse if the banks stop lending for new units....

Falls in apartment prices are accelerating in Sydney’s construction hot spots - realestate.com.au

 

so sydney most hated suburb 5km from the city zetland/waterloo not in there ??

one good news people are still buying at a lower price .. better than low price and no buyers ?

i guess if a product is cheap enough there will always be buyers.

 

CoreLogic released Flipping Property Report recently, where they indicated the number of those who resell with loss within 1 year of purchase (for Jun 2017) is growing. Taking into account that 1st half had a growth and 2nd half of 2017 had a drop... those figures now are higher.

"...the proportion of loss-making flipped sales is expected to rise in 2018 as house prices, especially in Sydney and Melbourne, start to ease and obtaining investor loans becomes harder"

PS. That's gross loss, excluding "the expensive costs associated with buying and selling property including interest payments, stamp duty, conveyancing costs and real estate agent commissions".

 

I havent seen any real evidence of that and I follow those areas reasonably closely. Its definitely reached a plateau for sure .... you certainly arent seeing houses getting top top dollar unless they are fully renovated... A grade stock I mean. Everything else has peaked and sure, maybe some vendors are having to get a little realistic, but not seeing any evidence of prices coming off sizeable amounts ... Cherrybrook Station is well advanced and will open in mid 2019 so I would expect a resurgence of prices then...or at the very least it will put a floor under prices. There's also a selective school there and really good access to motorways. Northconnex will relieve traffic on Pennant Hills Road , so I think Cherrybrook will still be a sought after area and gold up really well even if there is a correction across Sydney.

Interestingly, apartments in Castle Hill are still getting strong prices. I guess the areas where they are, and where new projects are being developed are within such easy walking distance to shops and rail ( to open in 2019) and its very close to Norwest and sort of close to Parramatta ... so at 800-900K they are an attractive option.

I paid 600K for a 2 bedder just 2 years ago with NRAS.... in a small block of 9 units on Cecil Avenue, just 5 minutes from the shops and rail... and I have a rear courtyard . Had it revalued mid last year at 850K and again recently at @900K so its definitely still a healthy enough market... but yes, the froth has definitely come off.

But thats happening everywhere. People cant get as much money... investors arent turning up in droves creating a fear of missing out environment ... so everyone's calming down, being a little pickier.... the A grade stock is holding strong and everything else is softening a touch. Buyers dont have to compromise and pay overs for something that needs a full reno... they can get 100,200K below the asking price and then feel like they can justify the reno.

Its the new estates in SE and NW Sydney full of FHB's rolling out of IO in 2019 and 2020 where the greater concerns should lie , methinks...

 

Why is Zetland hated?
Its also not cheap 2 bedrooms apartments will set you back $1 million.

We lived there for 2 years.
My wife walked to the city to go into work
I drove straight out to get to the west at time working in Milperra.

35-55 Walk to the city depending on which part you are in
20 minutes drive on a good run to Bondi
15 minutes to BJ
15 Minute drive to Maroubra Junction
7 Minutes to UNSW

Its a great master planned suburb. Basket ball courts. Fountain and park. Green spaces more greens spaces and even more next to the old booky stands.

Now there is more shops than when we lived there so happy.days.

You have to like high density. I lived in Russia and love places like London so high dencity is not an issue.
Ironically we move to burbs now.

 

hello neighbour !!!
i also own in zetland.. prices are good and rental is good too.. people queuing up to get in opens last weekend.

i only say that cause the media like to bash "heavily" densed area. as if it is end of the world to sell papers.

cant wait for the gunyama park to finish building.. the prices for apartment gonna shoot up again.
but then again there is so many new builts in fringe area that is associated with victoria park

 

I've seen a few properties in Sydney (and Melbourne), which have been purchased in the last few years, and then put on the market with DA approval for a new residence, and the price jacked up accordingly.

I don't know if this is normal market activity, or, as @AlexV_Sydney is suggesting, down to financing getting more difficult.

As for reductions, house prices tend to be sticky, and sellers are generally unwilling to reduce them. (Of course they'll want a big discount on their next purchase, due to market conditions.) I wonder if that explains some of the discrepancy between what @sash and @euro73 are reporting.

 

It takes a while for prices to adjust...more importantly vendors to adjust...one thing is certain it will happen.

 

I'm definitely seeing longer days on market near me - Greystanes/merrylands area. Plus a few properties at the higher end where the vendors won't reduce their price and they're still sitting on the market. Duplexes struggling to sell too.