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

[redwing]

Sydney was very much underperformed for a decade (October 2013).

"Over the past decade (written on October 2013), dwelling prices have risen by:-
 31 per cent in Sydney
 79 per cent in Brisbane
 80 per cent in Melbourne
 143 per cent in Perth"

In saying that, the experienced investors are looking for selling, instead of buying at this stage of property cycle, if he isn't the buy/hold style investors.

If I am a new investor without any property, I will still buy in Sydney. However, the price I pay today might be up very quickly now, but could be down back to today's level after maybe 5 years later when the market is very cool at that time.
So, I will buy with more careful and make sure I can hold on it for next 10 years.

There are a lot of mum and dad developers/new agents all over the Sydney. Their old business were tough and is making good money now in RE. Someone is buying few new blocks in the Ponds land release, and always there when a new land is released.

At the end of property cycle, there are always quite few developers who are making big money during the boom time, but have to declare bankruptcy at the end.

Recently read this over a shorter term

Since December 2008

• Sydney home values are up 50.1%,
• Melbourne home values are up 47.5%.
• Darwin home values are up 29%
• Canberra home values are up 21.5%
• Perth home values are up 15%
• Brisbane home values are up 5.3%
• Adelaide home values are up 9.9% and
• Hobart values are 1.4% down

The US Stockmarket is probably up 80% and the ASX up 60% since December 2008 on Growth alone (No dividends included).

 

[see_change]

Hello all,

I am a long term reader of this forum and finally recently I bought a existing house + land in Sydney as PPOR. walk to station, 19kms to CBD. South side ... Given this thread is about Sydney here is something to share and ask...

See_change, you have several IPs in NSW, is land tax not an issue to you because the CF is almost positive and you have CG ?

Also the property I bought is about 800k. Before I bought it I did a bank valuation, end up I am buying it 50k below the bank valuation, probably it is because

1. that area is not well known to the Chinese yet,
2. it was raining very bad last few weekends, not many people inspect
3. it is not the best house on the street...
4. bad presentation, and kind of a forced sale. I was quick and ready

also a comment about cashed up chinese buying up properties, if they can afford 2 mil properties it won't cost them much to get australian PR, the market price for arranged marriages is about 80k.... much less than the stamp duty which they are going to pay.

also IMO housing risk for sydney is for strata, because once a strata has been built, there is one land + house gone forever....

We pay land tax on two properties .

Weekender in wife's name is just over threshold . Downsizer pays land tax , but once we sell current PPOR it won't be an issue .

We have four units as long term hold which are just below the thresholds .

As a result we've bought other long term holds outside NSW .

Cliff

 

[redwing]

We pay land tax on two properties .

Weekender in wife's name is just over threshold . Downsizer pays land tax , but once we sell current PPOR it won't be an issue .

We have four units as long term hold which are just below the thresholds .

As a result we've bought other long term holds outside NSW .

Cliff

I thought it was based upon the value of your total property holdings?

 

[see_change]

Different entities

Individual names and SMSF

Cliff

 

[see_change]

Sydney booms into spring

Preview of this weeks auctions sales


Sydney?s winter auction market finished on a high last weekend by recording a clearance rate above 80 percent for the fourth consecutive weekend. The 81.9 percent rate reported was despite a 33 percent jump in listings with 583 properties going under the hammer well ahead of the 440 auctioned the previous weekend.

The Sydney auction market is clearly rising with the four-weekend average clearance increasing to 81.8 percent compared to 77.8 percent over the previous four-weekend period.

.........

No surprise with spring on the doorstep that Sydney recorded a big rise in auction sales above $2millon last weekend with 22 - up strongly from the previous weekends 14 sales.

.......

The northern beaches produced a stunning result last weekend with 33 from 34 properties listed reported sold at auction for a clearance rate of 97.1 percent. This was clearly the best result of all the suburban regions with the next best Canterbury Bankstown with 88.2 percent, the upper north shore with 88.1 percent, the south west with another strong result this weekend with 85.2 percent, followed the west with 84.8 percent and the central coast 80 percent.

.........

The most popular suburbs for auctions this weekend in Sydney are Surry Hills in the city and east, Wahroonga on the upper north shore, and Alexandria in the inner west each with 7 auctions scheduled. Mosman on the lower north shore, Epping and St Ives on the upper north shore and Ultimo in the city and east each have 6 auctions listed this weekend.

......

This weekend the market moves definitely into spring with confidence on a high for sellers. Higher numbers of auctions will continue to test the market through to the end of the year but signs remain positive that clearance rates will remain at solid to strong levels. Although clearance rates are set to continue at encouraging levels for sellers, prices growth will be unlikely to match the boom-time results recorded over last spring.

Cliff

 

[sandyfeet]

Hi Cliff,

Is there any data available that would compare say, the median asking price across sydney now compared to 12 months ago? I agree with your sentiment that we will see some continued growth but I wonder if this reflected median will at all be influenced by increased listings/sales for properties in significantly higher price brackets?

 

[Richard Feynman]

Who wants to take a punt at APM clearance rates this weekend?

My money is on 80%. If higher, all I can say is hold on for the ride.

I'm re-calling this. I misread the stock for auction this weekend as around 740. Must have been Melbourne or my imagination.

My revised guess is 83% based on (583 properties for auction).

 

[see_change]

Hi Cliff,

Is there any data available that would compare say, the median asking price across sydney now compared to 12 months ago? I agree with your sentiment that we will see some continued growth but I wonder if this reflected median will at all be influenced by increased listings/sales for properties in significantly higher price brackets?

Not sure on Data , have a look and tell us

re median , that is possible , the above 2 mill market is stronger , but as an example there are 8 properties for auction in wahroonga which has many plus 2 mill properties , and all ( based of search criteria on RE.com.au ) with expectations under 1.75 and some under 1 mill . I think last weekend there were around 20 , 2 mil plus sales in Sydney

Cliff

 

[Richard Feynman]

A little more insight into what's happening right now.

I was gazumped by 2 hours this week on a purchase in the inner west. I'd sourced it for someone outside of Sydney--not a purchase for myself. Shortly before I was to drop the cheque to the agent (the signed contract had arrived that morning via express post) a higher offer came in.

It's hard work taking something off market at the moment.

The opens I attended today were quite busy despite the abundance of H20 crashing to earth.

I chatted to a few agents, all saying the same thing. Stock levels are picking up.

No surprises there.

 

[Richard Feynman]

Another small contribution:

Macquarie Capital?s Rod Cornish suggests that interest rates look like staying low for longer than he'd originally thought - which may impact prices.

Without a rate rise, Sydney would reach the tipping point ? where the strongly growing market would change ? after another 15% price rise, he told the Australian Financial Review.

But he forecasts if rates were to rise 1%, perhaps in 2015, then that market change point would be hit after a 7% price rise.

"If rates were to rise 0.5%, the tipping point would be reached after a 10% house price rise," he said.

 

[see_change]

Clickable link as per previous post

Link as per above

Cliff

 

[Richard Feynman]

Unit goes 15% ($170,00) above reserve, and some strong house results (2 x houses 10% over reserve):

http://smh.domain.com.au/real-estat...for-170000-above-reserve-20140906-10dd3g.html

 

[see_change]

Unit goes 15% ($170,00) above reserve, and some strong house results (2 x houses 10% over reserve):

http://smh.domain.com.au/real-estat...for-170000-above-reserve-20140906-10dd3g.html

Interesting commentary on that unit . 97 M2 = Tiny ??? Since when .

97 m2 is a good size for a 2 bedder .

That view ?? Wow , Waterfront block ...

1.27 doesn't seem an unreasonable price .

Cliff

 

[neK]

I was at an auction this morning in Canterbury.
Agents were saying "around $800k"

Quite a large turn out... around 50-60 people in the front yard in light rain.
First bid was $870k by a buyers agent.
Sold for over $1,001,000
Some one tried to snipe towards the end, but they didn't yell out and missed out on bidding. They were really really pee'd off. They started yelling at the agent and auctioneer... the bidder (a rather big stocky looking man) looked like he was about to cry... you could see the trembling in his mouth.

 

[Richard Feynman]

Interesting commentary on that unit . 97 M2 = Tiny ??? Since when .

97 m2 is a good size for a 2 bedder .

That view ?? Wow , Waterfront block ...

1.27 doesn't seem an unreasonable price .

Cliff

Its 70sqm internally, 20sqm garage, 7sqm balcony to be clear.

Those view are killer, price seems pretty reasonably to me.

 

[Richard Feynman]

Good guess. Strong market. Barely a movement in the median.

Saturday 6th September 2014

Property Snapshot
Number Listed Auctions: 522
Number Reported Auctions: 404
Sold: 358
Withdrawn: 29
% Cleared: 83 %
Total Sales: $337,903,906
Median: $950,000

 

[see_change]

I was at an auction this morning in Canterbury.
Agents were saying "around $800k"

Quite a large turn out... around 50-60 people in the front yard in light rain.
First bid was $870k by a buyers agent.
Sold for over $1m... can't remember the exact figure.

Some one tried to snipe towards the end, but they didn't yell out and missed out on bidding. They were really really pee'd off. They started yelling at the agent and auctioneer... the bidder (a rather big stocky looking man) looked like he was about to cry... you could see the trembling in his mouth.

Can you link to the property ?

Cliff

 

[devank]

Good guess. Strong market. Barely a movement in the median.

Nice guess.

I was only out by 3.8% without doing/knowing anything

Again... next week will be same as this week

 

[see_change]

Strong growth tipped for bridesmaid suburbs

This article comes complete with an interactive map that shows you the domain groups prediction for growth in Sydney in the next year


Skater and others will be pleased to know that mt Druitt is one place predicted to out perform the rest

Suburbs that have been in the shadows of their higher priced neighbours are set to be among the most popular with home buyers this spring and into next year, new figures show.

Homebush, Petersham, Turramurra and Ryde are among 15 suburbs that will have price growth of about 12 per cent this financial year, the highest for Sydney, according to the Domain Spring Guide.

Others in this top tier include suburbs around Epping and Eastwood and others close to Parramatta and Mount Druitt.

Strong growth predicted for bridesmaid suburbs

Cliff

 

[monalisa]

Skater and others will be pleased to know that mt Druitt is one place predicted to out perform the rest

Yeeeehaaa