Everything you need to know about how the Eastern Suburbs Property Market is responding to the new norm
Spring has sprung and the media continues to write about falling Sydney house prices & suffering property markets. It’s difficult to know where that actually puts us. What do the reported trends actually mean for sellers and buyers in Sydney’s Eastern Suburbs?
At the risk of repeating ourselves, we know there is no all-encompassing ‘Sydney Property Market.’
At least not one that any of the reported data accurately shows.
The Sydney property market is made up of many micro markets, all of which behave very differently. Even houses and apartments in the same suburb can behave differently.
So why are we reading overall about “Sydney house prices down?”
Because the micro-markets aren’t well-understood by reporting bodies. It’s constantly shifting and there just isn’t reliable data freely available.
The current best source of information about your area and your property (or desired property), is from agents and buyer’s agents who spend all of their time buying and selling in your particular “micro-market.”
Agents and buyer’s agents are the people who are facilitating the transactions, are directly involved in the negotiations and know first-hand what the sentiment is.
In an effort to filter through the noise and give some perspective, here’s a snapshot of what is actually happening in the Sydney’s Eastern Suburbs right now.
BUYERS WANT HOUSES
Houses are selling strongly and for high prices. This isn’t a time to seek a bargain on a free-standing house in the area. Prices have not declined for freestanding homes in the East. For example, Angus Gorrie recently secured a suburb record price in Randwick for 53 Govett Street.
QUALITY PROPERTIES ARE SELLING FAST
When a good property hits the market now, provided it is priced correctly, it sells quickly. Alex Phillip’s team at PPD routinely sell homes in under a week on market around the Eastern Suburbs beaches.
THERE’S NO EVIDENCE THAT PRICES WILL FALL, SO FAR
Fewer owners are looking to sell as current economic uncertainty weighs on consumer confidence. For the time being, low stock and more active buyers are maintaining house prices. No-one knows what prices will do but to date, in Sydney eastern suburbs prime locations, there is no evidence of falling house prices.
THERE WON’T BE A SPRING SELLING SEASON THIS YEAR
Usually, there is a rapid increase in the number of properties listed for sale at this time of year. Vendors traditionally favour a Spring marketing campaign. I cannot see this occurring at the moment, the sentiment is that stock levels will remain low for a while.
THE MORTGAGE HOLIDAY “CLIFF”
The effect of the mortgage relief period ending and job seeker/keeper reducing has long been a topic for discussion. My personal view is that the ‘cliff’ will not happen and the housing market in the East will remain steady.
PEOPLE WITH COUNTRY-HOMES ARE LEAVING THE EAST
There is increased demand for houses in areas where there are traditionally a high proportion of second homes. Compulsory working from home has shown that a lot of people can do their jobs remotely. Areas that many considered too far away from the city for a daily commute are now viable locations to live. More people now only commute to the city 1 or 2 days a week, if at all. Demand levels in the Southern Highlands, Central Coast, Northern NSW, and Gold Coast are at record levels.
CERTAIN PROPERTIES AREN’T LEASING
The rental market is suffering in areas where there are usually a high number of foreign residents. Overseas residents have largely returned home – many have lost their jobs and don’t qualify for government relief. Some landlords have had to significantly reduce rents in order to find tenants.
Overall, the property market in the East is proving itself resilient. Buyer demand is high, good properties are selling quickly and prices are being maintained.
Despite what’s been reported, there hasn’t been an overall drop.
If you would like to discuss any of the above points, or seek unbiased advice on your situation, please feel free to contact me at kim@roseandjones.com.au.
