Property Market Update
The winter chill has taken the heat of the property market with auction clearance rates slipping in some Sydney suburbs.
But Senior Economist for the Domain Group Dr Andrew Wilson believes the dip is seasonal, pointing out that winter is traditionally a quieter time in the property market.
“People are distracted with school holidays and other matters,” says Dr Wilson.
“Often people think over the Christmas break of making a property move and then act on it early in the year when they return from holidays. By the time the campaign is organised, it’s usually moving into autumn.
“Those who don’t make the move very early in the year often become motivated as winter draws to a close and Christmas begins to loom. They then decide to sell or buy and get organised before Christmas. So the middle of the year is often quiet.”
Despite this, Dr Wilson says auction clearance rates and stock levels are still higher than usual for winter. But he also believes there has been some “price adjustment” as vendors realise their expectations may be too high.
“There was boom conditions late last year and into earlier this year and that can’t be sustained, especially since there was been no real wage growth,” he says.
At our auction on 26th June all properties sold under the hammer, and well above the vendors reserve prices. One 2 bedroom apartment in Darlinghurst achieved over $100,000 above reserve, selling for $991,000. The auction room was full and this result is a clear indicator of the limited listing stock currently available.
Hot Demand for Limited Listings
If you are thinking of selling, don’t wait for Spring. Take advantage of the strong buyer demand we are currently experiencing. While the number of listings has dropped, buyers are still actively looking to purchase in our area. So if you are thinking of selling, speak to one of our sales team today on 9331 9600 to take advantage of strong buyer sentiment fuelled by low interest rates and steady economic conditions.
Debate over Foreign Investors
As debate continues over foreign investment in housing, an enquiry has heard it does not price Australians out of the market. A recent report in the Sydney Morning Herald quotes the Property Council of Australia’s executive director of international and capital markets Andrew Mihno.
Mr Mihno told a parliamentary inquiry restricting foreign investment would have a negative effect as it would hold back supply. He said restrictive planning laws added “extraordinary costs” to new developments making foreign investment crucial for getting projects off the ground.
“Foreign investment is critical for national growth … it is helping Australia to develop more homes into the market,” he said.