Australia is experiencing a dip in consumer confidence at the moment.
As we can see, we are still above the historical average. But what does this mean for the Sydney property market?
Retail credit is still hard to come by (except for Expatland service providers) but is the rest of the Sydney population thinking its credit crunch 2.0? 2008 was a decade ago now and many are saying that we may dip again below the trending average in 2019. The Sydney property market is watching 2019 through a lens of skepticism.
The political sphere is driving this down with a March state election where the Premier is not handling her team well while no-one knows the name of the opposition leader. What’s going to happen? I know that treasury is screaming from the reduced forecast of stamp duty revenue.
What are they to do?
Federally we have a new PM that wants to reduce population growth and an opposition leader that wants to run on the premise of getting rid of negative-gearing? Do any of our leaders really want to foster a growth environment again?
What I do know is this? Buy low. Sell high.
The increased interest in doing deals in Sydney right now on both residential and commercial property is rife. We are negotiating on several investment properties for our clients in which the developer needs to sell remaining product or product with settlement risk with a 5-15% discount. Additionally, our clients are capitalising on buying established home’s for repatriation due to the pressure on some homeowners to sell.
One Sydney expat client from Hong Kong called to get some advice as she was not scheduled to come back to Sydney for another few years but wanted to take advantage of the current market and find her home for retirement. Over the New Year period, three private inspections will happen via Skype.
So don’t let the consumer sentiment get you down, take advantage of the counter market cycle and use the Christmas and New Year periods to reflect and plan for the next year or years ahead.
Sydney is considered globally as one of the most prime locations to buy property. It very much is about three key factors – location, location, location.
Which is to say Sydney has;
- a globally stable and transparent political system
- the centre of Australia’s commerce (the employment capital of Australia), and
- the highest population of any Australian city with approx. 6 million people and has constrained geographical supply.
Sydney has been under the spotlight from overseas buyers in recent years for these three factors and spearheaded by key social fundamentals:
- Strong education facilities
- Safe place for children to grow up, and
- A stunningly beautiful lifestyle.
Michael Radovnikovic from Radley Property’s guide to Sydney Property Services will equip you with the right information to ensure your next purchase in Sydney is a successful one. Michael believes that, on a global scale, Sydney remains undervalued and with strong population growth forecast between 2018 and 2036, a strategy for securing property has never been more important.
This guide is essential help for anyone who wants to secure the right property for the right price.
Download the publication here.
Sydney’s residential property market has been booming year on year for the last few years but as we have all known, these rates will not happen again. In the first half of 2018, we have seen a growing percentage of properties sold prior to auction.
With clearance rates at an all-time low, 50-60% for Sydney and Melbourne, there’s no better time to be a buyer.
We can always be sure that some people just have to sell, so be persistent and secure the property early if you can.
- Know your market
Data. Data. Data. With so much readily available information about Australian real estate, there’s no excuse not to know the fundamentals of your market area. No matter where you are living, you can access clearance rates, recent transactions, planning changes and builder/developer track records. A good place to start is an email subscription to CoreLogic, Domain, realestate.com.au, Property Observer and The Urban Developer.
- Don’t Settle
With lenders tightening their belts with local investors and more sellers concerned that they have missed the opportunity at the peak of the market, there has never been a better time to take your time to find the right property that meets your needs. Whether it is an investment or a home to repatriate back to, be sure to do your due diligence properly. In a cooling market, there’s more to choose from so don’t just jump at the first property that you see.
- Negotiate ‘Off Market’
Buyers are often confused by the term ‘off market’. The first preference is to always negotiate and secure a property before it is listed and many properties are bought on this basis. The other option is to take a listed property ‘off-market’ prior to auction. This not only reduces the stress of the auction experience but also ensures exclusivity over the property. With sellers extremely nervous about falling clearance rates, agents are now encouraging vendors to consider ‘off-market’ negotiations due to the lack of confidence in the market and reassessing their expectations for record-breaking sale prices.
Written by: Michael Radovnikovic – Radley Property