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2009 In Review
Friday, December 18, 2009
2009 has been a year where auction clearance rates have increased across the Sydney metropolitan area to 78% and rising. Torrens Title homes and semis across Sydney’s east and inner west up to $1 Million have all jumped in price with demand clearly outstripping supply. These properties have increased by up to 10% over the past six months as the Australian economy continues to outperform the rest of the western world. N G Farah have recorded just under $500 Million in residential sales for the calendar year of 09. With the overall number of purchases increasing on all types of properties.
There is no doubt that the government first home buyers grant and additional stimulus packages added fuel to an already relatively strong real estate market, which directly impacted on unit prices across Sydney’s Eastern Suburbs and metropolitan area.
The demand on units up to $600,000 was clearly transparent at our December unit Bonanza when a two bedroom unit in Addison Street Kensington sold for $560,000 - $40,000 over the vendor’s reserveby Tony Kalofonos and a two bedroom unit in Avoca Street, Randwick selling for $600,000 - $50,000 over the vendor’s reserve by Catherine Bullen. On each sale there were 8 registered parties and as a result of the pent up demand unit prices have also jumped by around 10% in the last 12 months.
There is also a big demand for semi cottages in the coastal and park side suburbs of Sydney. These properties have been going up by around $10,000 per month over the past two years and are still in high demand. Semi-detached homes in Maroubra, Coogee, Randwick, Kingsford, Kensington, Rosebery, Botany, Clovelly, Bronte and Bondi are all experiencing an increase in numbers at open houses and will continue to grow in price.
One of the foundations for a confident and healthy real estate market are employment figures and consumer confidence. We are pleased to report that unemployment throughout Australia is now on a downward trend and demand for skilled labour will increase over the next twelve months as businesses continue to improve as a result of a confident property market.
Sydney’s Hot Spots
There are several hot spot suburbs in Sydney’s East and Inner West that we believe are ear marked for continued capital gains in 2010. They are Alexandria, Zetland, Erskinville, Mascot, Rosebery, Botany, Matraville, Chifley, Malabar, Phillip Bay and Hillsdale.
All of the above suburbs are experiencing property growth yet are still considered relatively affordable when you consider what some of the surrounding suburbs in some of Sydney’s more illustrious Eastern Suburbs are achieving at auction.
In November 2009 N G Farah sold an extensively renovated Semi in Dans Avenue, Coogee for $3,300,000 and a near new home in Wilson Street, Maroubra for $4,075,000 (non-waterfront). Also a 2 storey home in Harbourne Road, Kingsford sold in December for $2,200,000 and a dual level cottage in Watson’s Bay for $2,750,000 which is clear evidence that the $1.5-4 Million bracket is also starting to turn.
Many property experts and analysts predict continued strong growth for 2010. What we can confidently say to the market place is that buyers are prepared to pay a premium for quality properties in well located areas and it can be difficult for purchasers to secure properties when the majority of properties go to auction in Sydney’s coastal and park side markets.
Buyers need to be savvy in their approach and also be well aware that vendors will sell properties prior to auction and that being regimented and dedicated in your quest to purchase property will ultimately assist you and shorten the process. Having up to date data on recent sales and good product knowledge is also important for buyers to be aware of.
We believe the property market works in a 7-10 year cycle and considering the real estate market last peaked in June 2003 there is good reason to believe that property prices will continue to out perform the stock market and bank interest rates over the next 1-3 years.
Sydney’s population growth and expansion is ultimately fuelling the already pent up demand for property throughout Sydney. It is believed that 100,000 new people will settle in Sydney next year, which is making Sydney one of the most attractive places to live for lifestyle, business and tertiary education in the southern hemisphere.
- Glenn Farah
News Archive
Spring into the Market - 29 Sep 2009The media have label last Saturday 26th September Super Saturday with over 650 properties auctioned in the Sydney ... view article
Low Stock High Prices - 02 Jul 2009As we head into the middle of winter which is traditionally the quietest time of the year in terms of property ... view article
Market Update by CEO - 26 May 2009Sales throughout the south east have been strong during the past week due to the levels of stock being low and ... view article
Market update by CEO - 18 May 2009With the first home buyers grant of $14,000 officially being reduced to $7,000 after 30th September and ... view article