Spring update – A busy season for Sydney real estate as buyers competed for properties and paid record prices
Media Release - 02 December, 2016
- NSW Government’s Priority Growth Centre initiative, drove demand for developments at Schofields, Riverstone, Box Hill and Marsden Park.
- Listings down 10% in the Inner West compared to November 2015.
- Upgraders, who bought larger houses in Maroubra in the last year, are now selling off the apartments they purchased as first home owners.
Sydney, NSW (2 December, 2016) High auction clearance rates, lower stock levels and strong prices defined the Sydney real estate market this spring, according to James Pratt, Director of Auctions, Raine & Horne.
“The Eastern Suburbs led the way, with an average clearance rate for spring of 90%,” said Mr Pratt.
“Other strong performers included southern Sydney, with a spring average clearance of 82%, and North Shore markets with 80%.”
Other regions to shine in spring included the North West, Inner West and South East.
As a result of the NSW Government’s Priority Growth Centre initiative, developments at Schofields, Riverstone, Box Hill and Marsden Park have proven popular with first home buyers and investors, according to Arvind Pillay, Principal, Raine & Horne Quakers Hill.
“These land subdivisions vary from 5- to 20-acre land holdings, with block sizes varying from 300 to 600 square metres,” said Mr Pillay.
“Currently, these blocks are selling for $1250 to $1450 per square metre depending upon location, frontage and the gradient of the land.
“Buying activity this spring was driven by low interest rates, the shortage of housing in the area, and the Priority Growth initiative, while people want to live close to transport, schools and job opportunities,” Mr Pillay said.
IT professionals and health and education sector employees have led the charge.
“These buyers have a preference for new style houses as oppose to the older ‘suburbia’ homes. Some first home buyers are buying the small blocks of land and are securing the opportunity before it is too late,” said Mr Pillay.
“In the last weekend of November, for example, auction clearance rates reached almost 90% in the Inner West, which easily trounced the Sydney average of 79%,” said Mr Pettenon.
However, compared to November 2015, the number of properties for sale was down by 10%. Fuelling the demand-and-supply dilemma, some owners tried to secure a next home before selling an existing asset, said Mr Pettenon.
“The extra pool of local buyers is pushing the pendulum further in favour of those vendors committed to a sale and is supporting strong sales prices,” Mr Pettenon said.
Raine & Horne Concord achieved three noteworthy street records: 9 Archer Street, Concord, for $2.5 million; 22 Fremont Street, Concord West, for $1.930 million; and 9 Bell Street, Concord, for $1.69 million.
“The later start to the traditional season means we expect to be selling properties right up until Christmas,” said Mr Spanoudakis.
The late wave of sales came as first home owners who had recently upgraded to houses in Maroubra sold apartments priced between $700,000 and $1 million, said Mr Spanoudakis. The median house price in Maroubra is $1.7 million.
“There was a trend for some upgraders to try to hold on to a first property, usually an apartment, as an investment,” said Mr Spanoudakis.
“However, many have recrunched the numbers and have realised holding the extra property means they are servicing a larger mortgage, than is necessary, on the family home, which isn’t tax deductible.
“To pay down their non-deductible debts, many owners have decided to sell their surplus properties, and this activity contributed to a later-season surge in listings in our region,” Mr Spanoudakis said.
For further media information contact:
James Pratt, Director of Auctions, Raine & Horne 0427 754 276