Over the last 2 months, the Governor of the Reserve Bank Australia (Glenn Stevens) has continued to drop interest rates, which is a very encouraging sign for home buyers through Sydney Metro market.
The current base rate for interest rates is 3.5%, inflation is now at its lowest level in a long time, there is a strong argument for Governor Glenn Stevens to continue to slash interest rates. The board of RBA meet on the first Tuesday of every month and there is no doubt the question of reducing interest rate will be on the agenda.
Interest rates in Australia are still significantly higher than USA and most European countries, but it should be noted that Australian interest rates are significantly lower than China and most Asia economies.
Sydney is still the most expensive capital city in Australia, as the median price for an average home is just under $650,000.
It should be remembered that June and July are considered to be the slowest season for selling properties and this has been evident through the low numbers of auctions being offered in the Sydney Metropolitan areas over the past 2 months. Buyers are generally motivated by a choice of properties, so we believe buyers will have a greater choice when heading into the Spring and Summer months.
Demand for properties between the $500,000 and $1.5million bracket is still very strong in the South Eastern suburbs of Sydney. Our recent auction results clearly indicated this.
A freestanding home recently sold in Matraville at 1 Oxley Street for $1,095,000 by N G Farah agent David Lee which was $215,000 over the reserve price had 18 bidders registered. Another property at 27 McNair Ave Kingsford sold for $970,000 with $70,000 over the reserve price and 9 registered bidders. Last Saturday the 28th of July N G Farah Director Theo Karangis sold a block of six 2 bedroom apartments at Coogee for $3,350,000, which was also well over the written reserve price, there were about 11 bidders registered on the day.
N G Farah Project Marketing have also had strong successes in recent weeks, with the launch of the brand new building Rockpool. Project Marketing Director Peter Goulding and his team have achieved outstanding sales success, having sold over 30 properties being more than 50% of the building on and before the launch day. Peter Goulding said “The other sales in Little Bay area include a top floor apartment in Millard Drive Little Bay which sold for more than $1.2 million by N G Farah agent Darrin Agius.”
It is clear that many purchasers are looking at the coastal and park side markets to secure apartments, semis and freestanding homes. There is still a shortage of properties on the market, this often leads to buyers paying a premiere price to secure the right property. N G Farah’s next Group In-room Auction date is on Tuesday the 28th of August 2012, which will be held at the Crowne Plaza Coogee Beach. There are several quality properties already listed on that date, and there is also time for vendors to list their properties before Spring. Damien Cooley will be conducting our Auctions for N G Farah and is considered one of Australia’s leading Auctioneers.