Our New Website
Seeing Spring is the month of blossoming flowers and all things fresh and new, I decided it was about time that PK Property changed design and colours, and launched Australia's most comprehensive and cutting edge buyer's agent website. Over the last 4 months the team at PK Property have been working day and night to produce a site that has over 17 videos and the most amazing information for the astute property buyer. We have also decided to launch a new PK Property update newsletter that will be issued each month.We would love your comments on both.
PK's October Sydney Property Market Update
Well we have now hit October and can officially say that the stock levels that agents thought were going to come on up to $3 million in both houses and units in the Eastern Suburbs, North Shore, parts of the Northern Beaches and particularly in the Inner West, is no longer coming on.
It's all about supply and demand and the more property to choose from keeps prices down, and the less that is available keeps prices stable or moves them upwards.
House prices for the June quarter continued growing but at a slower rate, and auction clearance rates have been hovering between 60 and 70 percent.
Since the beginning of 2009 the Sydney housing market has turned the corner. Between January 2009 and May 2010 Sydney house values (houses and units combined) have increased by 17.8%. This is the highest rate of growth since the boom in 2003.
The median price of a Sydney house now is $602,250.00 and that is 20% higher than the national average.
NSW over the 2009 calendar year accounted for 26.8% of the nation's overall growth and that's higher than any other state, and the largest share of population growth since 2002. Sydney is still the pick of all states for migrants and figures have shown that more people are deciding to stay in Sydney rather than leave to other states.
Some interesting data is that homes in Sydney are still selling faster than the national average- just 28 days for houses and 25 days for units, which suggests that demand continues to outweigh supply.
In my 20 years of real estate there has always been a supply problem and it's not getting better and probably never will. When developers enter into a project it is not emotional, just purely numerical and the difficulty with this is that the people selling the land to the developers want too much, and the figures just don't stack up at the end of the day for the developer, or the bank that's lending the money.
| Sydney | National | |
| Median price, houses: | $602,250 | $500,000 |
| Median price, units: | $447,000 | $419,000 |
| Median price, all dwellings: | $517,250 | $468,000 |
| Capital gains, houses (12 months): | 11.4% | 12.2% |
| Capital gains (units): | 12.5% | 11.6% |
| Capital gains, all dwellings (12 months): | 11.3% | 12.1% |
| Average time on market, houses: | 28 days | 35 Days |
| Average time on market, units: | 25 days | 23 days |
| Average vendor discount, houses: | 5.4% | 5.2% |
| Average vendor discount, units: | 5.4% | 6.5% |
| Average weekly rent, houses: | $514/wk (up 0.7% year on year) | $429/wk |
| Average weekly rent, units: | $487/wk (up 2% year on year) | $420/wk |
| Average gross rental yields, houses: | 4.1% | 4.0% |
| Average gross yields, units: | 5.1% | 4.8% |
Source: RP Data
My property predictions until the end of the year are as follows. Inner west units, free standing houses and semis will all see a height of activity because the stock is simply just not there.
My pick for investment properties would be units in the Lower North Shore of Sydney being Neutral Bay, Cremorne and Mosman in the price ranges of $600,000 to $750,000.
And that also goes for units in those price ranges in the Eastern Suburbs. Houses in the inner west up to $1 million will be hot and there is still a lot of capital growth to go on in that area.
Houses on the Lower North Shore up to $3 million are strong and up to $2.5 million even stronger because there is no stock available. Over $3 million still a little slow but starting to warm because of stronger employment, those employed in the financial sector are now starting to get bonuses and the economy is looking more stable.
Eastern Suburbs houses right up to $4 million and especially properties up to $3 million are still in high demand and very little stock is presently available. Over $4.5 million still pretty soft but once again starting to warm up.
The Northern Districts for houses up to $1 million still a very strong demand, units still soft. The Hills District is still a little touch and go on everything and that also includes the Southern Suburbs. If you want to get in before Christmas buyers you need to act pretty quick otherwise you will have to start your house hunting mid February 2011.
Amazing Property Buys
Randwick unit saved client $50,000
Balmain house saved client around $40,000
Manly apartment small water view saved client $175,000 off advertised sale price
Annandale 2 bed study townhouse saved client $20,000 off advertised sale price
Clovelly 1 bed unit saved client around $15,000
North Ryde house saved client around $20,000
Neutral Bay unit saved client around $50,000
Collaroy unit confidential
Wollstonecraft unit client saved around $36,500
Summer Hill house saved client $50,000
Lewisham house saved client $107,000
Leichhardt house saved client over $15,000
Specials for the month of October
To celebrate the launch of our new website anyone that signs up for any of our services in the month of October will receive a 10% discount on any of our services.
PK's Hot Tip
Vacancy rates are now lower than 2% in Sydney and as interest rates move there way up more people will fall back into the rental pool because the banks ask for a larger deposit and want more income to service the loan. Rents are going to skyrocket over the next 3 Years, and you heard it from me today it's time to buy an investment property so as to capitalise on these large increases that landlords will be able to enforce on tenants over this period of time.
Please remember when rents go up the instant benefit to you is that it's less money out of your pocket for servicing the loan. But also remember should you in the future want to draw down equity on this property to get into another investment property the valuation the bank puts on it, and the money they are prepared to lend you for the next property is very much linked too how much rent you are presently receiving. Also note that when you go to sell the property to another investor they will want to see that for one it gets a good rent, and the other that it has had steady rental increases year on year. If all this has been applied properly your investment will return you a strong capital gain in the future.
If you would like to receive PK's Sydney Property Market updates, hot investment tips and much more please subscribe here Or call one of our buyers agents today on (+61) 2 9904-3444 or email us so we can help you find your next dream home or investment property for the lowest possible purchase price.