PK's Sydney Property Market Update June 2023
PK Team Buys over $91 Million worth of Property for their clients in 4 weeks
Well, it's been a busy time at PK Property of late, with a bulk buy of 5 Apartments off the plan valued at $45,450,000 at the high-end Royal Far West Development in Wentworth Street, South Steyne Manly.
We also purchased two properties off the plan to the value of nearly $8 Million dollars in the 5-star Mosman development “Reverie” developed by Helm.
These 7 properties we purchased off the plan for our clients had an arrangement of buyers, everyone from downsizers to investors, to holiday home buyers, and one thing they all had in common was that people are craving 5-star developments with reputable builders.
Sure, we are seeing a lot of downsizers at present, but what I am also seeing is a lot of debt downgraders. These are people that instead of buying for $5 Million buy for $4 million and erase debt, or cut down the mortgage considerably, to offset the high interest rates at present.
As we head into the depths of winter stock levels will shrink even more, but don't be discouraged because spring will soon be upon us, and as we all know stock levels build up from there till Christmas.
PK's Property Market Predictions
A lot of buyers are seeing value now with the market being up to 20 percent lower than it was a year ago in certain areas, and they are also scared about entering the rental market and deciding to purchase. Everyone seems to be adjusting their budgets to suit their commitment to a mortgage at present, and I think that will continue as people on fixed rates enter a variable rate over the next 6 months.
PK's Hot Property Tips
Well, another interest rate rise from Governor Lowe is probably not a surprise, but definitely, a LOWE blow from Mr. No rate rises himself till 2024. Don't worry he will be gone by September this year, and another spring clean will be Alan Joyce.
Ok now I have cleaned up a couple of things, I think we all know what is driving this property market at present, and that is low unemployment which is making people feel very secure in their jobs, therefore they feel confident in taking on debt.
And number two there is simply no stock to fulfill the demand out there at present because people refuse to enter that brutal rental market. I think the market will start to chill out a bit come spring, a bit more stock to choose from, and unfortunately a couple more interest rate rises. Till next month everyone happy house hunting.