It may have been a flat start to 2019, but the property market is getting busier this spring, with the Sydney market posting one of its strongest recoveries on record.
What the quarterly data looks like for Sydney’s property market
The wider Sydney market may have started 2019 in the doldrums but that’s certainly not the case any longer. In fact, after two years of falling prices, the Sydney property market has recorded its quickest turnaround in decades.
Data from Domain’s September House Price Report shows that Sydney’s median house price rose 4.8% over the September quarter to $1,079,491. This is four times greater than the next strongest quarterly rebound of 1.2%, after a market low way back in 1994. The City and East region experienced a 1.4% quarter-on-quarter uptick.
Sydney’s auction clearance also rose to a healthy 74.6% across the September quarter, according to Corelogic, the strongest since June 2017. And in the eastern suburbs, the clearance rate was up to an impressive 86% by mid-October.
What’s driving the market and causing this positivity?
In our conversations with buyers and sellers, we’ve noticed several factors combining to bring this new optimism to the market. Lenders have ever-so-slightly relaxed lending requirements in the light of an APRA decision, plus we’ve experienced several interest rate cuts, which all makes it a little easier to borrow, especially for first home buyers and investors. The availability of credit is also encouraging upsizers to take the next step up the property ladder.
At the same time, we’re also seeing an increase in buyer confidence across the board, with many downsizers deciding a stronger market is the time to make their move. This discerning demographic remains one of the most important factors in the 2011 property market, especially at the premium end.
On top of this, we’ve also hit spring selling season – traditionally the most active time of year in Sydney’s property market. There has been a noticeable bump in the number of quality properties available, even though stock levels are still down on previous years. Again, this is encouraging people to take the plunge and make an offer, especially those who’ve been looking for some time but have been holding off, either due to falling prices or lack of available stock.
Buyer trends we are seeing in Potts Point right now
Lately, we’ve been seeing exceptionally strong demand for terrace houses across the 2011 postcode. These have always been scarce but as terrace houses become more sought after, there is even less stock available in the area. We saw this reflected in the fast, pre-auction sale of 19 Little West Street Darlinghurst in October.
We are also seeing strong demand for apartments between $2 million and $5 million. Meanwhile, while the market under $1 million has been slowly improving and becoming more competitive as investors return to the market and low-interest rates filter through.
As we’ve noted previously, buyer numbers at open for inspections have been improving steadily since the May election. However, many buyers are becoming frustrated by low stock levels.
This makes it a very good time to list your property if you’ve been considering it.
Median Property Price
According to realestate.com.au, the median unit prices in our area at the end of September are:
- Potts Point units $750,000
- Elizabeth Bay units $934,000
- Woolloomooloo units $937,500
- Rushcutters Bay units $739,000
The third quarter has seen our team sell some stunning properties, resulting in some new building records:
701/50 Macleay Street, Potts Point – Sold for $4,000,000, which is a record sale for the “Rex” building.
106/108 Elizabeth Bay Road, Elizabeth Bay – Sold for $2,100,000, which is a record sale for floor plan in the ‘Oceana’ building.
We’ve also achieved two great sales that reflect the difference a DA can make to a sale price over a relatively short period of time:
97 Victoria Street, Potts Point – This property was sold in June 2018 for $4,275,000 then re-sold in August 2019 with DA approval for $4,900,000.
27 Roslyn Street, Potts Point – This property was sold for $3,100,000 in November 2018 then re-sold in September 2019 with DA approval for $3,400,000
1704/81 Macleay Street
This three-bedroom Sub Penthouse in the Ikon building has panoramic views.
903/13-15 Bayswater Road
Located in The Hampton, this incredible two-level penthouse with four bedrooms and four bathrooms is Sydney luxury at its best.
102/14 Macleay Street
In the coveted Pomeroy building, this two-bedroom, two-bathroom apartment is perfectly located.
If you’re looking to buy or sell in Potts Point contact my team today.