See Change and Richard Feynman . let's hype the sydney market thread .

Guys,

More hype in the SMH today. I'm not sure the headline runs true though, the growth that "nobody" wants...

The extraordinary Sydney house price growth that no one wants

SMH said:
It was no April Fools' Day joke, unfortunately. Sydney house prices have shot up again ? and not just a little.

After 40 per cent growth in three years, against our worst fears the real estate industry included price growth seems to be accelerating. Almost 6 per cent over the first three months of this year, says RP Data, 3 per cent of that in just March.

We shouldn't be surprised either. Who could ever have believed the city could achieve the highest ever auction clearance rate 87.5 per cent, says Domain Group last Saturday when 1128 homes went under the hammer. The biggest auction day ever. On a state election day.

"This is the hottest of hot auction markets ever," the group's senior economist, Andrew Wilson, said.

So of course prices are rising. Money's cheap, with interest rates at historic lows. Everyone wants a piece of our beautiful city. Investors and upgraders are going mad.

So glad I held on to my little piece of Sydney! :D

Cheers,
Michael
 
My sister and her husband sold their 3 br townhouse in Castle hill (easy walk to Castle Towers) last April or thereabouts for 770k. They were very happy with the price. Two days ago I find out that another one in the block sold a month ago for 835k. And on the 31st March, another was sold at auction for 980k!

It's a small townhouse block of 10 and my sister's would have had the best land content of them all. They shouldn't have sold....
 
Depends really, on whether they put the money to better use and possibly achieved higher gains.

What happened was they bought a house on great land for $860k in Castle Hill 18 months earlier while my sister was on mat leave, and the market was a buyer's market. They had heaps of time to be very choosy, so they got one on wide flat land, over 900sqm, great street presence and presentation etc. Bank said you can't afford it now as they were on 1 income so they rented it out for a year.
Later they decided to sell the townhouse as they had hardly any mortgage on it and it wasn't so good for tax benefits.

They were very happy with the sell price of the townhouse, the market had really become hot.

With the extra money they got they ended up spending something like $150k on renos for the new place, I feel it wasn't absoutely necessary by the way, new kitchen, some other modifications, conversion of a parents retreat room to a bedroom sized walkin wardrobe, addition of a pool, outdoor area etc.
It would be worth $1.3 to 1.4 mill now. I think the uplift in price from the Reno would maybe add $60k? Note that they didn't have the reno done for resale purposes, just for home enjoyment.
I just think they could be kicking themselves knowing that they could have gotten 900k + for the townhouse if they sold now! I also think that the land that their new home sits on could be used for duplexes or higher density, in the future, it's really a good location on great land...
 
I bought 2 bed OTP last year ~ around June 2014 in Lane cove 2 bed 2 bath and 2 car space for 795k.
Right now, the established unit close by(~30-40 years old) renovated 2 bed with 1 bathroom is already selling and sold for more than 750k.....

It's Insane.

Not really. When is your OTP going to be complete?
You probably paid close to extra $100k-$150k then compared to oldies and will be waiting for almost 2-3 years before you move in. On top of that , you will end up paying hefty body corporate.

I too paid $700k for a 2-1-1 oldie in Lane Cove this year. It has 85 sqm internal, 25 sqm private courtyard, 14 sqm undercover car space. 500m walk to Lane Cove Village, Express city bus (via epping road) literally at the door step. Most importantly, I can move in right away.
I don't see much point paying premium for OTP compared to oldies.
 
Not really. When is your OTP going to be complete?
You probably paid close to extra $100k-$150k then compared to oldies and will be waiting for almost 2-3 years before you move in. On top of that , you will end up paying hefty body corporate.

I too paid $700k for a 2-1-1 oldie in Lane Cove this year. It has 85 sqm internal, 25 sqm private courtyard, 14 sqm undercover car space. 500m walk to Lane Cove Village, Express city bus (via epping road) literally at the door step. Most importantly, I can move in right away.
I don't see much point paying premium for OTP compared to oldies.
It should be completed by 2016 March/April

There were few OTP that has just completed near the village (next street to my places, Finlayson Street. Note: Mine is at 17 Birdwood Avenue - 200 m from the village) and they sold for 950 - 1 mill.

Body Corporate is quoted at 800per Quarter. There's no pool / Gym, so it wont be that bad.

http://www.realestate.com.au/property-apartment-nsw-lane+cove-118891443
http://www.realestate.com.au/property-apartment-nsw-lane+cove-117060847
http://www.realestate.com.au/property-apartment-nsw-lane+cove-118439643 (Sold for 980k)
http://www.onthehouse.com.au/report..._318,_14_Finlayson_Street_LANE_COVE_NSW_2066/ (sold for 1.05)

Even the one at the Lane cove north, they're selling for above 850k now

http://www.realestate.com.au/property-apartment-nsw-lane+cove-119015927
http://www.realestate.com.au/property-apartment-nsw-lane+cove-119082791
http://www.realestate.com.au/property-apartment-nsw-lane+cove-118990995
http://www.realestate.com.au/property-unit-nsw-lane+cove-119410063

It really depend on the area, the Lane cove area, there's alot of demand of people wanting a new luxury 2 bed 2 bath. So the price for OTP has increased significantly. Plus rental yield is better than the oldie. The apartment at finlayson has been rented out for 750-800 per week + depreciation for tax, so will be positive cash flow as soon as i settled.
 
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Sydney . Median: $1,375,000

Only a handful of Auctions today , so not a true reflection but ..

Look at the Median: $1,375,000 !!!:D

Property Snapshot
Number Listed Auctions: 34
Number Reported Auctions: 24
Sold: 19
Withdrawn: 4
% Cleared: 68 %
Total Sales: $20,767,000
Median: $1,375,000

Cliff
 
only a handful of auctions today , so not a true reflection but ..

Look at the median: $1,375,000 !!!:d

property snapshot
number listed auctions: 34
number reported auctions: 24
sold: 19
withdrawn: 4
% cleared: 68 %
total sales: $20,767,000
median: $1,375,000

cliff

OMG MARKET CRASHHH SELL EVERYTHING QUlCK :)
 
& only a 68% clearance rate... increasing price with low volume seen as an ominous sign in many markets :D

I'll pay that one hobo jo ;)
Maybe we're at the peak :eek:
Is that your call ? :D

Though seriously , if we have another rate cut on Tuesday , the roller coaster ride is going to have a bit more to run .

Cliff
 
It was bucketing down all day on Saturday in Sydney... I'm surprised anyone turned up for an auction at all!

We did (for a LC auction for a client) and weather was pretty miserable. Wayyyy too many buyers for my liking..... so much for a holiday keeping buyers away :eek:
 
Jacque

How did the auction go ? Above expectations ? Many bidders ?

Cliff


Hi Cliff

Great for the vendor
Yes as quoted by Fairfax $90K over reserve
About 12 registered but larger crowd
Interestingly I did chat to some peeved off buyers afterwards grumbling about underquoting and talking to OFT.... guide was $550K+
 
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