If you’re thinking of investing in the Sydney market but waiting until prices cool off or go backwards, you could be doing yourself a huge disservice.
Property journalists are churning out conflicting headlines at an alarming rate, so it’s no wonder the public are confused. In the last few weeks alone the media have produced headlines such as:
- “Sydney property market in bubble territory”
- “Sydney housing prices surge 20%”
- “Sydney prices faltering as new home ‘tsunami’ hits”
- “Sydney auction clearance rates set for 70% as boom ends”
Unfortunately, the most sensational story is the one people share and remember the most. It is no wonder there are a large number of buyers who are waiting for prices to fall so they can scoop up a bargain.
We would like to set the record straight. ‘Sydney’ house price figures such as median prices and auction clearance rates should NOT be used a benchmark for what is happening in your suburb. In our opinion, Sydney market research should be broken down into LGA’s (Local Government Areas) and then divided into housing & apartment markets before the information is accurate enough to be relied upon to assess what is actually happening at a micro level.
Unfortunately, this information is not that easy to come by, so the next best option is for you to get on the ground and do the research yourself. Attend as many auctions as possible to see where market demand is failing, see for yourself when properties are passing in and whether vendors are simply becoming too greedy. Assess the numbers of buyers through open houses and whether property supply is actually increasing dramatically or remaining steady. All of these factors combine to provide you with your own picture of whether your suburb is in decline, remaining steady, or still in boom territory.
Over the long weekend we attended an auction in Glebe on behalf of a client (that’s us front and centre of the photo below). The home was quoted with a price guide of over $1.2m then updated to over $1.3m despite the reserve being $1.5m. The hammer went down at $1.705m, a whopping $205,000 over reserve. There are no signs this market is slowing down any time soon!
And this is just one property out of hundreds across the city. Just as this article made great headlines yesterday, it is old news today. The fact is, you must not make decisions based on what you read or hear in the media. If buying a property is your intention this year or within the next few years, start doing your own research on the area and become familiar with the buying process. As long as you buy within an easy commute to the CBD, within an area that has amenities desirable to occupiers and tenants then you will always do well investing in the Sydney market. If you wait 5 years to make a move, you may find yourself resenting your decision and miss out on 5 years of positive growth.
Research is time consuming and knowing how to interpret the numbers can be stressful and confusing. Innovative Property Advocates are specialists in researching, locating and negotiating property transactions on behalf of property buyers. If you’d like a 15 minute phone consult to help you on your way, give us a call today on 1300 732 488.