How much steam does Sydney have left?

[Ace in the Hole]

I could not believe it, so many people ( mainly Asian/Chinese) walked into the agency and asking to buy overpriced off plan apartments

Meadowbank off plan apartments selling around $750,000 - $800,000.


I don't know how to describe it, but when I saw it in front of my own eyes, I felt speechless......

How many did he sell?

 

[Scott No Mates]

An agent friend of mine asked me to help him to do some paper work in his office.

Agents don't have friends, they have a network.

 

[scha9799]

As far as I know about 60% are sold. ( 55 unit released 35 sold )

Mainly Asian/Chinese buyer.

 

[Tenex]

From what I understand the main big areas in Sydney that are going to grow not just this year but possibly next year will be in and around Parramatta and the Hills Shire.

Parramatta will see a lot of construction both commercial and residential and I dare say that in 7-10 years time it will easily compete with Sydney CBD.

Hills has two big projects, the rail line and the shopping centre and the fact that it is fairly close to Parramatta.

Western Sydney in general will be the main focus. In and around CBD, Eastern suburbs and inner west are already out of reach for many buyers. You cant really expect a property that is already trading at 1.5+ Mil to become that much more than that with people wanting to buy it.

But Western Sydney is still within affordability range of more people.

 

[perky29]

12 more months to go , with another 10-12% IMO.
Then Sydney will see around 5 years of flat growth. Some areas may lose up to 20% over that time.
Then the new cycle will begin in 2021, and peak in around 2025 or 2026....
David

 

[see_change]

Where's the 5-7 more years of this madness option for See Change?

..

Seem to remember I was mentioning down turn / corrections ( but I'm sure you'll correct me if you can ) . At the moment the market is going up strongly . With another rate fall yet to come who knows how more it will go up .

Cliff.

 

[Richard Feynman]

8-10% is a clear winner.

I think we are in for a bit more.

Time will tell.

 

[seismic]

Median prices of few random suburbs....

Bidwill:
2004: 247K
2005: 250K
Feb 2015:361K

CastleHill:
2004: 637K
Feb 2015:1080K

Voyager Point:
2005: 690K
Feb 2015:810

Campbelltown:
2004: 300K
Feb 2015: 425K

 

[WattleIdo]

8-10% is a clear winner.

I think we are in for a bit more.

Time will tell.

Ha hahha funny that doomsday came in 2nd.

 

[Richard Feynman]

Ha hahha funny that doomsday came in 2nd.

With an all time explosion of growth in third.

We are an extreme lot.

 

[Aaron Sice]

As far as I know about 60% are sold. ( 55 unit released 35 sold )

Mainly Asian/Chinese buyer.

that aligns with the NAB report recently - 55% of foreign buyers are buying apartments, not development sites / land holding.

so who is driving the average house price spike?

 

[MichaelW]

My crystal ball says another 25-30% this cycle. We did 15% last year and about that the year before. Another 15% this year then slowing down to 5-10% next year and a repeat in 2017.

Still, anything above 2% inflation works for me...

Cheers,
Michael

 

[Ace in the Hole]

So over 60% of poll voters recon less than 10%, not much confidence there.
At the rate it's been going, we could possibly gain another 10% in a matter of weeks, calculating prior to the weekend just passed.

 

[Shadow]

I'd say there's at least another 12 months or 15% growth in this cycle, but more if the RBA keeps cutting interest rates.

This weekend Sydney had an 85% clearance rate with a median auction sale price of $1.1 million.

The market is still very strong.

 

[knightm]

I'd say there's at least another 12 months or 15% growth in this cycle, but more if the RBA keeps cutting interest rates.

This weekend Sydney had an 85% clearance rate with a median auction sale price of $1.1 million.

The market is still very strong.

I think Shadow is on the money with this one.

 

[skater]

I think Shadow is on the money with this one.

I think so too. I've got one that needs to be sold next financial year to spread the capital gains around more than one year, so I will be very annoyed if I'm wrong.

 

[C-mac]

Yup I agree with the conservative forecast of 8-10% more growth for Sydney this calendar year. Though Sydney remains the economic powerhouse for Australia in these times of an otherwise gloomy economic outlook nationally, it cannot continue to carry the country's slack much longer whilst still seeing ridiculous 20%+ gains.

 

[Deltaberry]

Around 10% in Sydney. 15% in Melbourne.

Just a yield differential play. When you borrow at 4.2%, you could afford to buy at 3.4%. I was seeing inner city sell for 4.5-5% net last year with land component.

 

[Deltaberry]

that aligns with the NAB report recently - 55% of foreign buyers are buying apartments, not development sites / land holding.

so who is driving the average house price spike?

Australian citizens.

But of course it's easier to blame someone else, especially if they look different.

 

[Azazel]

I think there is some more left in different areas of course and for those that have an idea of what they're doing, but I've felt lately that there is a correction coming. Previously was ignoring the naysayers predicting a crash. If you keep saying it, you'll be right eventually. But I think your everyday buyer (first home buyers, upgraders, novice investors all over-extending while rates are so low) paying too much at the peak now will be in some trouble shortly. That could be a whole lot of people.