Sydney's Eastern Suburbs markets are easing (at least temporarily).

Affordability will eventually hit all markets

 

Next 3 to 6 months will be interesting. Especially for the higher price point markets say over 2.5m .

 

Which parts of the east have you observed this @Sackie ? I have almost zero stock in my suburb

 

Bondi, North Bondi, Rose Bay, Vaucluse, Dover Heights, Bellevue Hill.

I agree stock is very low. What is on the market though would have been snapped up faster 4 months ago . Like I said I'm not seeing price dip yet, just noticed that buyers FOMO is definitely not as strong as March . When more stock comes on, it'll be interesting to see buyer behaviour. I, myself, am going to market in one of those suburbs soon.

 

I was about to say the same. I think it's the high end markets that have definitely slowed (my anecdotal evidence is in regards to large blocks in inner west). Back in March the FOMO was too much that people weren't being picky on anything, and were compromising on street and other factors that weren't favourable, but people are now being more picky.

 

What price falls into the top/high end of the market in the Eastern Suburbs though?

 

Depends who you ask. The gap from units to semis and homes is massive though. I think you can take any stock type, look at comparable sales which sold 4 months ago and compare how long it takes to sell now. What my sense generally is that buyers FOMO is greatly less when compared to March. Will the frenzy pick up again for another sharp jump in values ? No idea.

 

The Inner West hasn't seemed to slow at all. Properties around Concord are selling for (in some cases) 30-40% more than they would have sold for last year - it's absolutely crazy. The agents can't even believe it.

I'm speaking to all the local agents trying to find a property, and a couple of them have 1 or 2 things coming up but all Vendors are waiting until after the lockdown. I was hoping the lockdown would slow things down, but it just seems to be making buyers more desperate to secure something, and with less listings it's pushing prices to ridiculous figures.

 

Hi Sackie and all,
Would like to have your view please.
We are a close-to-be-retired-couple, looking at selling in Bris and move to Eastern Sydney for family reasons (house with land in Coogee/ Clovelly/Randwick). We don't have to move right now but definitely will move so the question is when not if.
We have been tossing between selling & moving now (worrying that Syd price will go up more I will be priced out of the area),
and,
delaying the process (hoping that Brisbane price will still go up more, while Eastern Syd's will not increase much as per your observation).

We know no ones know for sure ... but just wondering what would you do, what is your gut feel please, with your knowledge of both markets ?
Many thanks.

 

Hi.

I m not a Sydney East Expert like Sackie but just my 2 cents. What is your property in Bris worth roughly? Say if your brissy property is worth 1m and the Sydney East one is worth 4mil. And then they grow at the same rate or Brisbane grows a bit faster than Sydney. The gap still widens. Close to retirement, your enjoyment should be a priority as well as your financial position. So if you find a good property in Sydney East whenever, go for it.

 

Mate for me it all comes down to what can you live with or not. Sydney properties could retract enough to make it worthwhile to wait BUT my gut tells me that's more unlikely to happen then some more continued growth then sideways movement. No one can know for sure. If you are wanting to buy your ppor and you can afford to buy it now, that's what I'd be doing. Can you live with being totally priced out in 24 months? That may or may not happen. All depends what you are willing to risk.

My gut is purchase now if you can afford it. Over time, I do not see Sydney prices going backwards drastically and staying there. Historically that's never even come close go happening. Too much demand now and in the future .

 

Thank you for your reply Goodlucktt22. You are right, sometime we don't see the obvious until someone points them out. If sell in Bris now we probably could get a modest house in that area.

 

Thank you Sackie. Your comment has helped a lot, much appreciated. Think we will continue to prepare our house for sale. Will report back any significant progress.

 

Good luck with it.

 

Ok, I can report values in the East are absolutely still insane. Scrap easing in prices. There is very, very little stock on the market and when something gets listed it basically sells for a mega premium. Today at auction a crappy broken down semi with no views, no parking had 8 registered bidders and sold via on line auction for.....oh wait, price quoted was 2.8 to 3.1m .

Sold $3.8m smackeroos!

The place I bought less than 3 months ago I'm being offered off market 300k+ more than I paid for it....

Nuff said.

 

Does macroprudential affect the high end markets? Was Eastern Suburbs affected at all last time?

 

I don't have stats but I know properties say 20mil plus get affected due to sentiment. But everything else had bounced back with a mega vengeance.

 

Which suburb is this property please Sackie ? Thanks.