Buyers take advantage of falling prices in Sydney and buy high quality, quality properties
Real estate values ​​in Sydney recorded their largest annual decline since 1983, at 8.1% according to CoreLogic data. However, the banks are not concerned and let the slowdown come.
"To date, the Reserve Bank has not been very concerned about declining housing values, mainly because it's been confined to Sydney and Melbourne, and both cities have seen a substantial increase in their value in recent years, "says Cameron Kusher, Research Analyst at CoreLogic.
As a result, housing prices are expected to fall further throughout 2019, with Sydney assuming all the weight alongside Melbourne.
"If the downturn in the housing market had an impact on consumer spending, then we could see a shift and see some of the temporary macro-prudential measures eased in 2019," adds Kusher.
Sydney's recession also touched areas such as the Central Coast and Wollongong, but the REA Group's chief economist, Nerida Conisbee, identified regions outperforming the market. "Places like Orange are doing pretty well, just like Northern Rivers County is going up to the Queensland border. Byron Bay and the surrounding small towns also seem to be in high demand. "
Good news for renovators
For buyers wishing to modernize, the downturn has resulted in a positive market move, as renovators are now able to save a considerable amount of housing in prestigious suburbs.
"I do not think conditions have always favored [trade-up] buyers as universally as they do now," says Nick Viner, founder of the Buyers Domain Buyers Agency.
"There is an extremely rare opportunity to secure a property of very good quality with extraordinary long-term potential, because the competition simply does not exist at the moment."
He cites some reasons for this: the lack of competition, the introduction of a surtax on foreign investors, the strict loan conditions imposed by banks and the general tightening of credit.
"It is impossible to know when the market will have reached its peak before rising. But bid settlement rates in Sydney are down – currently, they do not exceed 40%. Buyers can be tough, so there is a chance of buying prime properties that are usually very difficult to secure in a growing market, "said Viner.
SPOTLIGHT ON A SUBURB
TOUKLEY: Market down
The suburb of Toukley is a beautiful spot on the central coast, surrounded by lakes and beaches. It has many natural attractions, such as Tuggerah Lake and Birdie Beach, which attract tourists.
Investors in this area, however, are beginning to feel the effects of the NSW downturn, with real estate prices falling for the first time since December 2013. Average vendor discounts on homes and retail units October 2018 were also quite high at 6.8% and 5%, respectively.
Rental rates rose 10.3% to a weekly average of $ 320 in October 2018. Units also spend an average of 43 days on the market.
Tourism: Surrounded by lakes and the sea, Toukley attracts tourists who love fishing and the beach
Rental Rates: Rents increased 10.3% to $ 320 during the 12-month period ending October 2018
With interest rates at their lowest for over 50 years, there are excellent rates available. The best thing to do is to compare the rates of all the lenders. Let us help you solve this problem – Compare home loans now
Top suburbs:
West Rockhampton
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Toowong
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Glendenning
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Torrensville
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balga
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