Media release - 10^th October, 2014

Listings on the Lower North Shore are down 10%, making it a sensible time to sell ‘hard to shift’ properties
Properties with some limitations are selling in weeks rather than months in the Inner West
1-bedroom apartments without internal laundries are selling in weeks rather than months in Parramatta

The robust Sydney residential market presents a perfect time for owners to sell properties that typically take longer to transact in softer conditions, according to Raine & Horne.

“Every property has features that will appeal to buyers, however some houses and apartments may tick fewer boxes based on size, style and location,” said Angus Raine, Executive Chairman and CEO of Raine & Horne.

“It might be an apartment with no parking or balcony, a third-floor unit in a walk-up building, a tiny bedsit, or a house located on a main road or across from a railway line.

“In softer markets, properties with some flies on them may take longer to sell, but for now they are selling weeks faster. A bull market smooths out the detractors and gets properties moving.

“However this situation won’t last forever, and with talk that interest rates are set to rise sometime in 2015, it’s time for owners to make a move.”

Hamish Kyle, Co-Principal of Raine & Horne Neutral Bay, says if a property on the Lower North Shore has a shortcoming and it is marketed when there is a scarcity of stock, then the chances multiply of it achieving a decent price.

“It’s hard to put a value on what you’ll get for a home with a few limitations, but with listings down 10% compared to this time last year in our region, apartments without balconies, properties backing onto busy roads, or homes located at the back of a battle-axe block are selling much faster,” said Mr Kyle.

In the Inner West, Gabriela Rodriguez, Principal of Raine & Horne Summer Hill, says that properties with some limitations are probably selling twice as fast as they would in a softer market.

“Properties that took three months to sell last year are being snapped up in the current market,” said Ms Rodriguez.

“I’ve sold properties on main roads, close to the railway line, that have no balconies or parking that would have been very hard to sell in softer markets. Indeed more vendors are recognising that the strength of the market now is a great opportunity for them to sell these properties.”

Despite the opportunities afforded by current market conditions, Ms Rodriguez urges vendors to get their pricing right.

“Regardless of whether you’re selling a Summer Hill terrace or a Canterbury Road bedsit, the property won’t sell if you fail to get the pricing right,” said Ms Rodriguez.

The deal-breakers tend to be overlooked by buyers and investors when the market hots up, according to Michael Harris, Co-Principal of Raine & Horne Newtown.

“In quieter markets, properties built on streets with road widening clauses, for example, will be very difficult to sell, yet in a market like we have now, they will sell in a timely manner,” said Mr Harris.

20/34 Alice Street, Harris Park In Parramatta, apartments without lock up garages or internal laundries have traditionally been deal-breakers with many buyers, according to Lisa Surian, Director of Raine & Horne Parramatta.

“Recently, we sold 1-bedroom apartments at 5/116 Harris Street, Harris Park for $270,000, and 20/34 Alice Street, Harris Park for $295,000, which didn’t have internal laundries,” said Ms Surian.

“These properties sold in two weeks, whereas in a softer market, it’s fair to expect they would have taken months to transfer owners.

“The 1-bedder at 5/116 Harris Street, Parramatta would have been particularly hard to sell as it’s only 48 sqm. With tiny apartments such as this, the banks request that borrowers have bigger deposits, which can make them harder to sell.”

-ENDS-

For further media information please contact:

Angus Raine, Executive Chairman and CEO, Raine & Horne on 0409 920 697

Andrew Harrington, National Communications Manager on 02 9258 5400

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