Given purchasers are more flexible on location they are keen to secure
property prior to auction.
The cooler weather was late in its arrival this year which certainly helped to keep the shine on the property market in the June Quarter.
Sydney median property prices rose by 2.4% for house and 0.6% for apartments compared to the March quarter. This increase pushed Sydney’s median house price back up past $1m to $1,021,968.
Locally we saw a lift after the Easter and school holiday breaks which really saw April as a bit of a write off for campaigns with so many public holidays disrupting the flowof auction programs. That being said May and June were exceptionally busy and as the pressure to off-load property before the end of financial year became the desire for so many vendors.
Comparing the stock levels to this time last year we are down approximately 30% in volume and similarly the number of purchasers in the market have been much fewer. Some purchasers have been frustrated by the lack of availability and choice in the market and taken a break from looking, though encouragingly prices have remained quite steady across the board as those purchasers actively looking are conscious that they do not want to miss out on a property for fear of not knowing when the next one that suits their needs will become available.
A trend that has certainly emerged as a result of declining stock levels is that buyers are casting their net a lot wider geographically than traditionally seen. Previously buyers would hone in on one suburb and perhaps a neighbouring one but because stock levels are so tight they now appear to be looking for property in regions quite wide spread. Value for money is also coming into the equation now more than ever, with desired suburbs being less available they are prepared to compromise on a specific location in order to get more boxes checked off their wish list.
Given purchasers are more flexible on location they are keen to secure property prior to auction, if what they deem to be a reasonable offer is not accepted in the pre-auction phase of the campaign then they quickly move on to the next opportunity.
Investors are again circulating through the market speculating that interest rates may fall even further in coming months given the low inflation levels which of course makes financing a property purchase all the more attractive.
It is interesting, given all the above, a recent Domain report shows in all of Sydney’s 700 suburbs, Drummoyne is the only area showing a positive sales pattern. Almost every area has seen its property market fall but Drummoyne has gone against the grain to become the only growth suburb in the nation’s largest city.
I am sure like me you are all looking forward to the cold winds subsiding and warmer weather arriving for Spring when we also hope to see purchasers coming out of their winter hibernation ready to compete in the Spring Market.
Our property management team has been focused on achieving the best possible rents for our landlords, which in a market where we are surrounding by newly developed projects impacting the supply chain is proving challenging. Landlords are now having to give serious consideration to the state of presentation of properties when re-leasing in order to protect their yields. This is extending beyond a simple paint and carpet refresher to new kitchens, bathrooms and landscaping to compete for tenant market share.
If you have an expired lease or know your tenant will be looking to vacate it is advisable to have early and pro-active conversations with your property manager about any improvements which may need to be made to avoid any unnecessary vacancy periods.
We would like to extend a warm welcome to our new clients and tenants resulting from the merger of Rowe Street Realty with our company. Our senior Property Manager Hannah Tatam has been busy ensuring a smooth transition has taken place.
Until next time,