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

[sanj]

Just wondering.... When did you move to Perth?

Those two places are 640 sqm land which is just 20 mins walking distance to the Parramatta CBD. Current prices are not overly surprising.

I moved to perth 17 years ago but I'm not sure what that has to do with it.

Nearly 1.25m for a small and dated house 20 mins walk to parramatta is crazy money imo, we're talking parramatta here not sydney or melbourne cbd.

People are having to pay a ludicrous amount to live in somewhat ok accommodation and often have to travel ages to work too, I just don't think that's a great thing long term for the individuals or the economy. For investors in the current market oof course it's good

I mean this sold for more than 35% over the reserve price, it's bloody parramatta for God's sake. 1.3m for a tiny dated house in parramatta??? Am I the only one who thinks this is crazy?

 

[XMW]

I mean this sold for more than 35% over the reserve price, it's bloody parramatta for God's sake. 1.3m for a tiny dated house in parramatta??? Am I the only one who thinks this is crazy?

There are quite a lot cladding / fibro house sold in Parramatta lately for over 1 mil, due to high density zoning.

Bet that house is bought by developer, as average house hunter won't buy for living in.

 

[XMW]

The whole western sydney property market is crazy hot I say. A clading house in Blacktown / Seven Hills will command over half mil easily these days...

 

[Alex1]

We are seeing a boom here right? If so, Warren Buffet would be saying to sell up and get cashed up and wait for the correction.

Any thoughts when this will come? My thoughts are at the first sign of interest rates rising, the 'craziness' will leave the market, and when rates get back to the 7% mark there will be many families on average wages with mortgages around the million dollar mark being put under huge financial pressure.

$900000 at 5% = $870 IO per week
$900000 at 7% = $1210 IO per week

Wages are not growing inline with property prices.
It would be interesting to see how many people are borrowing with high LVR on IO loans to be able to afford the repayments now at the lowest interest rates we have ever had. Won't leave a lot of breathing room when they rise.

I don't want to see a crash at all, but I would like to upgrade PPOR but not willing to pay ridiculous money to do so.

 

[Ace in the Hole]

I mean this sold for more than 35% over the reserve price, it's bloody parramatta for God's sake. 1.3m for a tiny dated house in parramatta??? Am I the only one who thinks this is crazy?

I don't get it either?

What is the development potential of this property?
That's the only thing I could imagine it has going for it.

Not knowing the area well being from East/South Sydney, I would have thought even the reserve price was being extremely ambitious.
What's the attraction to Parramatta?

 

[XMW]

What's the attraction to Parramatta?

Huge development in Parramatta. Some already happening.

http://www.theaustralian.com.au/new...he-wests-capital/story-e6frg6n6-1226883131676

 

[Television]

I don't get it either?

What is the development potential of this property?
That's the only thing I could imagine it has going for it.

Not knowing the area well being from East/South Sydney, I would have thought even the reserve price was being extremely ambitious.
What's the attraction to Parramatta?

I think most people are assuming that one day, New South Wales is going to need a second major city. Most people think Parramatta will be it.

 

[RetireRich101]

The whole western sydney property market is crazy hot I say. A clading house in Blacktown / Seven Hills will command over half mil easily these days...

Most people say Sydney West led the rise, but the actual big jump I am seeing is in this year, mostly second half...
My letter box (in blacktown) is filled with RE postcard saying they sold record prices and lack of stock.

A fibro shack 3 years ago would be $350k. Today it will be $550k.

 

[Shadow]

Just rediscovered sqm Research , inparticular their stock on market graph which enables you to track the number of properties on the market

According to SQM Research... 'As at this morning, Sydney median asking prices for houses have now hit the $million$ dollar mark' (from Louis Christopher)

 

[Newbieatlife]

I think most people are assuming that one day, New South Wales is going to need a second major city. Most people think Parramatta will be it.

On That basis, we should all be buying up in and around Chatswood which already is considered a "second city" to Sydney and geographically/demographically miles better than anything in Parramatta...

If people are paying $1.5mil for a house in parra then surely Chatswood houses should be significantly higher (which they are not currently)

 

[Bawxx]

On That basis, we should all be buying up in and around Chatswood...

If people are paying $1.5mil for a house in parra then surely Chatswood houses should be significantly higher (which they are not currently)

If you had followed the market rather closely, you would have seen that Chatswood is indeed significantly pricier than Parra at the moment. Just check the recently sold houses over there, eg, 5 Lamette St, 6 Kooringa Rd, etc.

 

[Television]

On That basis, we should all be buying up in and around Chatswood which already is considered a "second city" to Sydney and geographically/demographically miles better than anything in Parramatta...

If people are paying $1.5mil for a house in parra then surely Chatswood houses should be significantly higher (which they are not currently)

I think most people would consider Parramatta as the second city before chatswood, but I may be displaying my bias as a resident of Western Sydney.

Not sure it's geographically better... Western Sydney is becoming larger and larger all the time. Parramatta is closer to Penrith, Liverpool, Blacktown, Homebush, Castle Hill.

Also, I believe immigration patterns are changing. More people are locating out west.

 

[Newbieatlife]

If you had followed the market rather closely, you would have seen that Chatswood is indeed significantly pricier than Parra at the moment. Just check the recently sold houses over there, eg, 5 Lamette St, 6 Kooringa Rd, etc.

5 Lamette - $1.76m
6 Kooringa - $1.6m

how is that significantly higher than $1.5m? Parra and Chatswood is like Kia and Mercedes....I never suggested Parra is equal to Chatswood as that would be absolutely ridiculous and almost unfathomable. For an extra $200/$300k I would take that pocket of the North Shore any day, and I doubt any person forking out $1.5m for a home will have much of a problem with that shortfall anyway

But the fact that the gap is edging so much closer screams to me that Western Sydney is driven purely by hype and will be hit hardest when the inevitable slowdown/correction comes....

 

[sanj]

But the issue is if someone's paying $1.23m for an old small house (perfectly livable though) to make say 30% on it it's gotta go up to what $1.7m or so? Over $2500/sqm for land in parramatta??

I just don't understand it but ultimately I'm just an observer from afar, I don't have any local knowledge

 

[Television]

But the issue is if someone's paying $1.23m for an old small house (perfectly livable though) to make say 30% on it it's gotta go up to what $1.7m or so? Over $2500/sqm for land in parramatta??

I just don't understand it but ultimately I'm just an observer from afar, I don't have any local knowledge

I definitely think that there's hype around Western Sydney, but again, from someone on the ground, watching the cultural changes recently is staggering.

Most immigrants can't afford to live in Chatswood. Chatswood is also tremendously ethnically homogenous (largely seems to be Chinese/Korean) whereas Parramatta still seems to be much more of a mixed bag.

Chatswood might be a "nicer" area, but the waves of immigrants and the children that they're having are happy to grow up out west.

Parrmatta is still largely a commercial city, i.e. there's office space and not a lot of "cultural" allure. But the council is working to change that. There's been music festivals in Parramatta park, the Parramasala festival which celebrates Indian Culture, there's a main street which from memory is now closed off on Friday and Saturday nights so that the restaurants can have alfresco dining. There's a few little fancy cafe's popping up here and there.

I think that Parramatta is being put down because of the old perception that Western Sydney is the worst part of Sydney. There's a ton of dives, but it's improving rapidly.

 

[Bawxx]

5 Lamette - $1.76m
6 Kooringa - $1.6m

how is that significantly higher than $1.5m? .

Factually speaking, the Parra one is only around $1.23M for a 600m2 house. Both houses in Chatswood above are 20-35% pricier. In my book, that is significant. The price difference fairly reflects the present difference in qualities between those 2 suburbs IMO.

 

[Ace in the Hole]

How about comparing the surrounding suburbs for these 2 examples.
Surely Chatswood is strongly supported by all of it's neighbouring suburbs, not sure you could say the same about Parramatta.

I believe this counts for a lot.

Take Redfern or even Paddington as an example, all surrounding suburbs worked together to get these up, it had to happen.
I don't see Parramatta doing the same to it's surrounding suburbs, but could be wrong.

 

[Newbieatlife]

Factually speaking, the Parra one is only around $1.23M for a 600m2 house. Both houses in Chatswood above are 20-35% pricier. In my book, that is significant. The price difference fairly reflects the present difference in qualities between those 2 suburbs IMO.

Yes I know what you are saying and do agree to a degree...but traditionally, the gap has been much wider between the 2 Sydney areas e.g. $1.4 mil in chatswood and surrounds compared to $700k in Parra....im just saying the ratio is skewed atm due to Western Sydney hype so its either Western Sydney tanks or Chatswood booms IMO

I'm also not speaking about CHatswood specifically but generally, 'Leafy North Shore' has had a very long history ingrained as Sydney's most prestigious area surrounded by a lot of wealth and 'old money' and this simply will not change regardless of how much gentrification Parramatta and surrounds sees IMO. Arguably, lifestyle is miles better surrounded by beautiful, unpolluted national parks, bays, education/private schools and low crime rates as a result of a completely different demographic. Northern beaches are also a stones throw away.

The fundamentals of any harbour city will always be the closer you are to the harbour, the more expensive real estate will be.

Also, people who can afford to buy property in the millions are not 'nickel and diming' as much as people who are buying in lower price brackets so arguably, 20 - 35% pricier properties are not as significant for people with that kind of money to spend in the first place

 

[see_change]

In the last week there was an article saying how the expensive areas are under performing compared with cheaper areas and this debate parra vs Chatswood is just a reflection of this.

The reality is in this cycle , cheaper areas have moved first and that's usually the pattern , though it's often the cheaper places in central suburbs that move first , but Western Sydney is having it's day in the sun .

IMHO Over the next years I think we'll see the more expensive places move up more .

As an example , We sold our last PPOR ( pymble) in 2001 for 1.4 ( so well before the last peak ) Now , 13 years later it on the market with offers over 1.8 . Assuming it sells around 2 , that's not a great retun over a 13 year period .

Cliff

 

[redwing]

According to SQM Research... 'As at this morning, Sydney median asking prices for houses have now hit the $million$ dollar mark' (from Louis Christopher)

Just saw that