A WORD FROM WARWICK
Positive signs for Sydney Property Market after reports of First Quarter growth
With the statistics becoming available for the performance of the Sydney Property market in the first quarter March 2013, it is very encouraging to see that not only is the volume of sales up, so too are auction clearance rates and returns. Conversely the days on market and percentage of vendor discounting have decreased. These factors combined look to be providing the foundation for continued positive growth as we move further through 2013.
As at March 2013:
- Sydney property prices are the highest of all capital cities
- Sydney average annual growth rate over the past 5 years to February 203 was 2.8%
- In the past year home values have increased by 3.7% and unit values by 4.1%
- Home values increased by 1.5% in the month of March 2013
Looking at these figures (courtesy of RP Data Market Update March 2013) we certainly appear to be in recovery mode which is great news for our vendors and landlords, however without getting ahead of ourselves Tim Lawless from RP Data highlighted in their National Media Release March 1 2013 that “while the housing market is staging a demonstrable recovery, we need to see values rise a further 4.3% before we can say that a technical recovery has been achieved. That amount of value appreciation is likely to be at least six months away”.
We are very much enjoying the positive sentiment in our local market place with excellent sales and rental returns driven by a constant steady increase in demand for more people wanting to move into our area each week. I do however think it is prudent to remind vendors and landlords that while transacting in an improving market is where you want to be, remember to continue to listen to the market when it comes to your price expectations – it is better to be realistic and be pleasantly surprised with the end return than be over ambitious and disappointed.
I look forward to reporting more positive news in the coming months.
Until next time,
Premium property market review by Diane Travers
When considering the performance of premium property returns throughout Sydney since the Global Financial Crisis (GFC) you would be correct if you assessed it as being one of the hardest hit with growth rate somewhat stagnant and perhaps even dormant over recent years. We can, however announce that what began as early signs of life late in 2012 has definitely improved through the first quarter of 2013.
Demand for waterfront homes, luxury home units and family homes is surging and important catalysts for this shift are certainly the solid growth in the local stock market and affordability in terms of finance which in turn have placed upward pressure on pricing and buyer confidence across all price points.
We witnessed clear evidence recently when local residents acted quickly to pick up a premium property on the East-side of Drummoyne. In just 21 days, 66 Alexandra Street, a comfortable three bedroom family home with plans to rebuild on a prized 715sqm block, was sold for just below $2,000,000. Interestingly, the majorities of interested families all currently reside in and enjoy the lifestyle our area has to offer and want to secure their next home here.
During 2012, 90 homes in Drummoyne were sold, with 31 over the $1,250,000 price point. With a number of premium sales already this year we are forecasting the final 2013 result will exceed this result.
One of our prestige family homes currently available for your consideration is 5 Checkley Street, Abbotsford (below) going to auction 11 May.
For more information contact Diane Travers on 0412 490 776 or email firstname.lastname@example.org. Click here to visit her profile.
Introducing 4 Wrights Point, Drummoyne