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WOW - Auction results Sydney

Discussion in 'General Property Chat' started by teetotal, 24th Sep, 2016.

  1. teetotal

    teetotal Well-Known Member

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    I am amazed at the auction clearance results today. More than 1100 Auctions were scheduled this week for NSW closing with more than 81% clearance.
    I know some of you will say these clearance rates don't mean anything but usually this is the key to 'self fulfilling prophecy' to begin.

    Where is Sydney/ NSW headed ? Investors are gone but Owner occupiers are driving the demand crazy. Everyone in Sydney area is now looking for a PPOR (including myself ;)).
    Boom is not over yet. Even HTW have adjusted Sydney's position on their famous property clock few times now. Nobody knows what's next. Totally unpredictable.
     
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  2. RetireRich101

    RetireRich101 Well-Known Member

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    2 work colleagues put a deposit last week on a 4 bedroom townhouse in Schofields for low 700k. It's an OTP townhouse that will be ready to move in about 12-18 months. It is for their PPOR...

    They have been patiently watching the Sydney market in the last 12-18months...It isn't the FOMO factor for them anymore...it's way past them..... they are more mature than this. however they are losing patience and is not seeing Sydney to fall :eek:.... danger? opportunity? that lies ahead, god knows.
     
  3. dabbler

    dabbler Well-Known Member

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    Two words "interest rates"

    Also, there are a lot of people still investing, I have seen them, I also know multiple people who have bought investments in Sydney, I say nothing, 3-4% gross is not for me.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    The one in Haberfield surprised me. A non-heritage house with no street appeal and dire need of refurbishment sold for over $2.4m. I was expecting sub-$2m for it.
     
  5. teetotal

    teetotal Well-Known Member

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    That....
     
  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    And the median for auctions was typically in the 1.2's for the majority of the last 12 months but last week it broke through to 1.3. I think that's significant.
     
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  7. MTR

    MTR Well-Known Member Premium Member

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    Just finished reading NAB property report on Syd and Melb market they are forecasting both to completely stop growing in 2017. We have already seen a slow down for both if you compare figures today to figures this time last year.

    OTP is high risk, there has been plenty of information reporting oversupply. People do crazy things, especially close to peak

    MTR
     
  8. MTR

    MTR Well-Known Member Premium Member

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    Interesting times.
    Melb at 78% clearance, low stock

    I would be tempted to wait for primary residence, but what do I know I pulled the pin late last year on Sydney, fear of overheating market. Signs for me were clear in Syd West suburbs, have not looked lately.
     
  9. jins13

    jins13 Well-Known Member

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    Agreed. I hope that people have additional funds to complete the deal because if the val comes in lower, how will they settle? In saying that, I did purchase an OTP townhouse, but that was settled last year when the lending criteria was abit more certain.
     
  10. MTR

    MTR Well-Known Member Premium Member

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    I guess I have a wake call, I live in Perth and I see the pain and have also been around the block just a few times, 6 property boom/bust cycles, easy to lose your head when you are making money.
     
  11. vbplease

    vbplease Well-Known Member

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    Which most likely means another 10-20% growth in 2017..
     
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  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    No crystal balls! But I know there's still plenty of OO's looking in Sydney atm. 12 months time... maybe not.
     
  13. MTR

    MTR Well-Known Member Premium Member

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    I hope so, what would that make Syd median $1,200,000 sustainable??????
     
  14. RetireRich101

    RetireRich101 Well-Known Member

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    the level headed first home/ppor buyer would consider blacktown to penrith area where it's only 50% of sydney median...
     
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  15. C-mac

    C-mac Well-Known Member

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    Sometimes I get random irrational thoughts and think: 'Sydney is just going to implode' like Vancouver has recently. Strongly recommend ppl Google Vancouvers massive downturn to watch a bubble bow popping in real time...

    I think whilst interest rates are this low then demand and with it price growth will continue to rise. Are the people who over-extend themselves to scrape into a 1.3m house in Sydney in 2016 in for hard times in the first few years of owning? Probably.

    The reality is that Sydneys economy is evolving to really only make the city affordable for the high-income-earning folks anyway. Not many would qualify for an 80% lend on a 1.3m house if on say $50k salaries...

    I then wonder how sustainable all this is. Surely not ALL of Sydney's 3million or so workforce (of 5 million actual humans) can be raking in the swish 6-figure jobs?? What about all the cleaners, hairdressers, nurses, bus drivers, postmen, shop-staff, etc. ppl who need to live here too? These roles are needed to service the economy. We cant just not have bus drivers any more for example. Nor does it aeem likely bus drivers can simply ask for $150k per year instead of $75k per year, either.

    To me it seems like this problem wont go away, it'll only get more pronounced. I dont like it when folks describe any lower-medium income ppl as "left behinds" (this phrase is becoming more common in mainstream vernacular which is concerning). Just because someone is a teacher, nurse, or restaurant employee doesnt mean they are a "left behind" who is unable to keep pace with the evolving workforce! No, these jobs are still fiercely needed in Sydney and these folks still need to live and find affordable housing in this city too.

    When I look to Vancouver and its current housing ramp-down (couldnt link it but google macrobusiness vancouver bubble pop for a good 'start' to understanding what is happening to dwelling prices there...), I cant help but draw comparisons to Sydneys journey so far. With all the looming supply coming on board, the tough stance on Chinese buyers, and latent need for cleaners, teachers, park rangers etc. to find affordable housing, it does make me wonder what the next couple of yeara will look like for sydney. Will it be flat, negative by a little (e.g. 5%) or another Vancouver?
     
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  16. RetireRich101

    RetireRich101 Well-Known Member

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    Other might think you're crazy, but I think there is small possibility that this may occur.

    I work with many colleagues from China....some have properties in their country. They are saying their property market had a small pause now is again heading up. One colleague said he sold a property in Shanghai which he had for 5 years and it tripled. People still enjoying the growth there and is not in a hurry to take money out. What if the scare mongrelling starts again in China and Vancouver's door is shut.
     
  17. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Low volumes, high buyer numbers, to be expected.
     
  18. LeMU

    LeMU Well-Known Member

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    I agree - I think it's the low Interest rate that continues to fuel the price/demand.

    I too have been wanting to upgrade our PPOR to a townhouse/house in Sydney for a while, and been keeping an eye out on it all the way from last couple of year's FOMO to today...still no signs of slowing down. As MTR said, I too wonder how sustainable can this median of 1.2 mil be?

    out of curiosity I attended a first OFI last week for an old 2 bedder unit in Hornsby in the early 500K mark. Agent advised it's currently on a long lease and is locked getting $390 a week for rent for another year. I shook my head and left as the rent is way too low so the numbers doesn't work, thinking this will be a hard sell. And bang! One week later it's under contract...didn't even have to have second OFI.

    Interesting times ahead indeed.
     
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  19. big max

    big max Well-Known Member

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    Gotta say same observation for BrisGoldie. I guess people are realizing low interest rates are here to stay for quite some time making property investment a great way to make money.
     
  20. bumskins

    bumskins Well-Known Member

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    Which doesnt neccesarily indicate strength.