Australia is officially experiencing a housing boom. With the nation only breaking out of technical recession three months ago, every region and every capital city in the country recorded gains during February.
Sydney recorded a gain of 2.4% as a whole during the month of February which makes it the most aggressive upswing in 17 years since 2003. The most notable change for me this month has been the improved response to the apartment stock. A by-product of the higher house and townhouse prices, many buyers now out priced and opting for better value.
This month I am tipping South Sydney apartments in large complexes to rebound which were affected by the flooded market and the negative sentiment directed towards this market after the Mascot towers disaster. This will be the next market to pick-up. No one likes knowing they could have saved 10% if they had bought a year ago, right? Well the good news is that there are still local buying opportunities that are very palatable. As a prime example I have an apartment 3311/50 Pemberton Street in Botany LINK which traded new in 2017 for $960,000 going to Auction with a price guide of $790,000.
Two notable sales so-far this year for me was selling 16 Alexandria Parade South Coogee to a buyer on our database for a price between $6M-$7M, which was $700,000 higher than a newer home sold next door less than 12 months ago! Another personal result was selling 6/1357 Botany Road Botany, a strata townhouse for $1,550,000. Many of those whom inspected had taken to the property after recently being priced out of freestanding house options.
Across the board unbelievable benchmark sales are being reported every week as Sydney overall property prices reach the peak of those in 2017 and house prices continue to climb over and above.
Last report I tipped Perth to investors and as a follow-up I can tell you that Perth saw strong increases in Feb. While Sydney and Melbourne may outperform Perth in the short term I see Perth in for a much longer sustained period of growth as it still holds a medium value under that of its peak in 2008. With a buy-and-hold strategy I have always followed the very simple ‘property-clock’ algorithm when picking where to invest. Following this method is for patient investors who don’t mind diversifying.
Navigating a boom market can be very stressful as a buyer and as a seller. So here is my tip for the month! Most agents won’t tell you this. If you need to buy and sell eg trading up or trading down, in a fast rising market; Buy first then sell. In a declining market; Sell first. This is a general umbrella rule which is geared towards minimising purchase price and maximising sale price. However, individuals will have their own different set of financial circumstances, comfort levels and boundaries so it is important to consult with a professional licensed real estate agent and your broker/ bank about the options available.
In my next article I will cover off on the pros and cons on selling off-market vs on-market as well as provide another update on where the prices are heading.
Council Sales Reports and quick links;
If you are looking for a no BS convo about real estate call me anytime.
Billy Couldwell 0416 713 721
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