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

[charlieandkath]

1.1 for wentworthville .....

800 K for a house in Liverpool !!!!

WTF !!!!

this has to be getting close to the top.

Unless there has been underlying change in the market ( and I don't think so )

Mona Lisa / MsAli .

They've been talking about parramatta as a second CBD for a long time . We go there on a regular basis as our accountant is there .

I haven't seen a fundamental change in the area last thirty years apart from some new office and apartment blocks.

At some stage people will be buying places out there for cheaper than they are selling at the moment .

This is really where

The Hype is kicking in ...

Once it get to this stage , the end is inevitable .... it's just a matter of how long .

IMHO , any one who buys out west at this stage is off in La La land

BTW , are you going to turn up to Skaters next meeting . Every one was asking where you two were ...

Cliff

I reckon the top is still circa 20% - 25% away. Main theory is interest rates. Still an easing bias. We need an interest rate rise first to fire the warning shot. People will then scramble to still get in as there will be so much hype by then and fear of missing the boom that they will buy anyway. The second interest rate rise will be the second warning shot before the third rise will kill it. This will be the top. Fourth interest rate rise and so on will start wiping out any gains.

As far as I see it we still could be two years away from that third interest rate rise. Of course there are markets within markets so some may be very toppy now.

Was seriously thinking of buying in Sydney again circa 3 months ago but not anymore as need more than 20% gain to ride it to the next cycle which could be circa 10 to 12 years away. My theory only so you bears out there can go and jump in the lake.

 

[virgo]

Sydney silly!

Hiya

I will add my chorus to the silliness of Sydney....

A friend just sold in Epping (more than 2 million.....)

He is renting a 3 bedder at Meadowbank WITH WATER VIEWS for ....wait a minute....690 per week....apts are selling in the SAME building for 1.3 million...

Not to forget landlord has to pay strata himself....

At this rate...someone is seriously subsidizing the tenant and hoping for some serious capital gains...

Problem is many people are hoping for that too

Oh...did i mention he was the ONLY applicant?

When the music stops, and all these apartments are fighting for tenants, that's when it gets interesting....and i get interested

 

[windyzz]

Hiya

I will add my chorus to the silliness of Sydney....

A friend just sold in Epping (more than 2 million.....)

He is renting a 3 bedder at Meadowbank WITH WATER VIEWS for ....wait a minute....690 per week....apts are selling in the SAME building for 1.3 million...

Not to forget landlord has to pay strata himself....

At this rate...someone is seriously subsidizing the tenant and hoping for some serious capital gains...

Problem is many people are hoping for that too

Oh...did i mention he was the ONLY applicant?

When the music stops, and all these apartments are fighting for tenants, that's when it gets interesting....and i get interested

Your assuming that the buyer purchasing the 1.3 mill is an investor.
I'm suspecting it could be someone want to live there.

 

[virgo]

Huh?

Well, good for the owner -occupier then....then there will be one less need for a tenant wouldn't it?

but i do know from anecdotal evidence (and from my banker too) that there are many who are jumping into the OTP multiple units purchase show and buying not one but two, three etc...

 

[BayView]

Your assuming that the buyer purchasing the 1.3 mill is an investor.
I'm suspecting it could be someone want to live there.

Yep.

Assuming the buyer is an investor; the deposit required to make the apartment cashflow neutral or pos would be rather large...how many investors are able to lay down that sort of coin?

If the investor is borrowing the lot/most of the funds - and the rent is supposedly $690p/w - that is one seriously high earning investor, and not a very astute one, I'd dare to say.

Unless the CG is more than fabulous in the next year or two, the holding costs would well and truly outweigh the CG.

I think you could put $1.3m to better use as an investor.

At least we can safely assume it's not a FHB who is missing out on the deal.

 

[windyzz]

Yep.

Assuming the buyer is an investor; the deposit required to make the apartment cashflow neutral or pos would be rather large...how many investors are able to lay down that sort of coin?

If the investor is borrowing the lot/most of the funds - and the rent is supposedly $690p/w - that is one seriously high earning investor, and not a very astute one, I'd dare to say.

Unless the CG is more than fabulous in the next year or two, the holding costs would well and truly outweigh the CG.

I think you could put $1.3m to better use as an investor.

At least we can safely assume it's not a FHB who is missing out on the deal.

My Bet is someone downsizing from a house and preferred an apartment for convenient living

 

[Weteggs]

Wenty's median is 750Kish. This particular 1.3 mil is an outlier. We don't really know the real reason for this particular sale price. May be it is fine to argue over the median prices but arguing over this sort of one off sale is pointless. As Ms Ali mentioned, Darling Harbour unit & Wenty House are really apples & oranges. Why bother?

I was responding to posts about the 581 of Darling Square apartments that were all sold out within 5 hours:

http://news.domain.com.au/domain/rea...23-gh822c.html

There were posts 2 pages ago saying how outrageous an 800K 1 bed apartment in Darling Harbour was. I don't think this is any worse than a 1.325mil house in Wenty that is a 15min walk from the train station.
http://www.realestate.com.au/property-house-nsw-wentworthville-119535019

 

[Weteggs]

1.1 for wentworthville .....

800 K for a house in Liverpool !!!!

WTF !!!!

this has to be getting close to the top.


IMHO , any one who buys out west at this stage is off in La La land


Cliff

Totally agree. That's the same response I had.

But it's actually 1.325mil for Wenty and 850k in Livo.

 

[windyzz]

I was responding to posts about the 581 of Darling Square apartments that were all sold out within 5 hours:

http://news.domain.com.au/domain/rea...23-gh822c.html

There were posts 2 pages ago saying how outrageous an 800K 1 bed apartment in Darling Harbour was. I don't think this is any worse than a 1.325mil house in Wenty that is a 15min walk from the train station.
http://www.realestate.com.au/property-house-nsw-wentworthville-119535019

I think 800k for 1 bed right in Sydney CBD does make more sense to me .... but 1.3 mill in Wenty for a house that still need work inside... DOesnt make any sense.

Anything in Major City tend to be very expensive: NYC, HK, SG, Tokyo, etc...
800k for 1 bedroom still sound's reasonable

 

[Weteggs]

Totally different demographics. Take a look at who's buying in Wenty. Particular ethnic groups who have settled in the area and their relatives want to live there too. I see that being the major reason why the Wentworthville/Pendle Hill/toongabbie/Girraween area has exploded in price.

Yes you're right, certain ethnic groups are pushing the prices up certainly in Wenty, Greystanes and Pendle Hill. Same as it has done in Homebush. Having said that, the same has happened 10 years ago in Epping and Eastwood. So I guess it's just the cycle. So I think we need to consider the micro factors in what drives the prices up and not just point to developers gone crazy.

 

[devank]

So I guess it's just the cycle. So I think we need to consider the micro factors in what drives the prices up and not just point to developers gone crazy.

Now that is a sensible conclusion

 

[sanj]

800k for 1 bedroom still sound's reasonable

and here we have it ladies and gentlemen, official confirmation of sydney's bubble.

 

[windyzz]

and here we have it ladies and gentlemen, official confirmation of sydney's bubble.

I don't go on and Say "WOW Cheap Let's go buy it".. But what do you expect for an apartment right in Capital City of Sydney ? 1 bedroom for 500k ?!?!?!?!

Have you been to other Capital City around the world ? NYC, Jakarta, SG, Hk, Taipei.. You'll be paying more than 15k per sqm for an apartment right in capital City.

Have you take into consideration that our labor cost is very expensive here in Sydney ?

 

[sanj]

I don't go on and Say "WOW Cheap Let's go buy it".. But what do you expect for an apartment right in Capital City of Sydney ? 1 bedroom for 500k ?!?!?!?!

Have you been to other Capital City around the world ? NYC, Jakarta, SG, Hk, Taipei.. You'll be paying more than 15k per sqm for an apartment right in capital City.

Have you take into consideration that our labor cost is very expensive here in Sydney ?

no, ive not been in any other capital cities.

i also have no access to google or the ability to think.

i also have not taken into account high labour costs in sydney.

ultimately i dont think FROM 800k for a 50sqm 1 bedder in a development with over 1000 apartments is a good deal, you disagree. im completely ok with us disagreeing here.

 

[windyzz]

no, ive not been in any other capital cities.

i also have no access to google or the ability to think.

i also have not taken into account high labour costs in sydney.

ultimately i dont think FROM 800k for a 50sqm 1 bedder in a development with over 1000 apartments is a good deal, you disagree. im completely ok with us disagreeing here.

No i wouldn't buy it myself... even for 600k i wouldn't touch it.

But to some overseas investor i can see the value. I checked Numbeo and can understand why our property here is a hotspot for overseas investor.

 

[MsAli]

1

BTW , are you going to turn up to Skaters next meeting . Every one was asking where you two were ...

Cliff

Haha Cliff. Will aim to be there. Monalisa caught the flu and was home with her work laptop!

 

[bobby85]

We need a poll to start putting bets on when the median price begins to fall in Sydney.

 

[Simon L]

I'd say Sydney is more like a Toronto. Definitely not HK, NYC or SG scale.

I don't go on and Say "WOW Cheap Let's go buy it".. But what do you expect for an apartment right in Capital City of Sydney ? 1 bedroom for 500k ?!?!?!?!

Have you been to other Capital City around the world ? NYC, Jakarta, SG, Hk, Taipei.. You'll be paying more than 15k per sqm for an apartment right in capital City.

Have you take into consideration that our labor cost is very expensive here in Sydney ?

 

[dajackal]

I'd say Sydney is more like a Toronto. Definitely not HK, NYC or SG scale.

Confirmed! http://www.atkearney.com.au/documen...2014.pdf/3628fd7d-70be-41bf-99d6-4c8eaf984cd5

Sydney is ranked 14th in the Global city index following Toronto at 13rd.

 

[MsAli]

Does this comment on the ad suggest anything about the Sydney market?

"PLEASE NOTE: For the vendor's privacy, please do not knock on the door."

http://www.realestate.com.au/property-house-nsw-wentworthville-119865121