Vicky88

I'm curious if there is anyone out there who is trying to purchase or sell real estate in Australia at the moment and what your experiences are. If you aren't I don't really want to hear about housing prices have to crash because they are overpriced or because the media says so, I want to hear of real life experiences because we have seen that debate over and over and no-one has been proven right.

I've been following real estate on the Lower North Shore in Sydney for the past 6 months as we are thinking of buying something as a rental in the area. However, unlike most areas I have previously followed, it appears prices never get lowered even if they are still unsold 6 months later. Does anyone know if this is a uniquely Sydney thing?

If you are selling are you getting much activity on your property and if you have sold how much under the asking price did you have to sell for? Did it take long?

ABCDiamond

Be aware that answers will be different for the different States, and that Sydney prices have not risen as much as other States for the last few years.

Therefore any comments from Perth, as an example, may be totally irrelevant to the Sydney situation.

GaryKristensen

We live in Queensland. We have just got our first house which we had watched for months. I went through another agency so that it was all above board. The house we were watching dropped over $100,000 in 3 months. It turned out to be a marriage split and a forced sale before the banks closed in on the house. We ended up with a house valued at $560,000 for $400,000.

Good for us but not for the Sellers

Pomster

we sold our house in Vic a few weeks ago....we sold it for roughly what I thought it was worth and in just 5 weeks.
We also bought a demo job (plan to build our own) which 8 months ago was unheard of- they were all hyper inflated by developers paying way over the odds and subdividing.
Now the developers are nowhere to be seen and these 'detonate' houses are back to normalish prices.

OzSheila

Hi Vicky,

My cousin just sold her lovely little semi in Five Dock for the full asking price in 3 days. In the end there was more than one party fighting over the property. We can't help but think she sold it a bit cheap - circa $800K. This is my only experience of the Sydney market.

Here where we are in Melb some properties are going before auction. This is being put down to severe shortage of props in the area. I am talking $1m + I have given up trying to predict what is happening in the prop market. There seems to be 2 very distinct economies. No hint of a recession around here

spottydog

In the bits of the Inner West I've been watching lower end/first home buyer prices have increased significantly over 2009 (easily over 10%) compared to rapid drops/stagnation for the last 6 months of 2008.

Mid range houses are just not coming on the market so the few that do as long as they aren't asking silly money for what they are are generally selling quickly and often for more than the agents original guide price.

Top end houses are coming on the market and not selling.

A brief look at the Lower North Shore (as I wanted to see whether that maybe an option) seems to show the mid range prices dropping significantly with a large number of properties just sitting there. Lower end properties are again selling like hot cakes.

spottydog

Sorry didn't answer this. As a buyer looking weekly for about 8 months I would say its noticeable how many viewers there are for properties up to $1.5m with queues to get in on the first open house. The size of the queue seems to correlate conversely with the price so the higher the price the smaller the queue but they all have queues on their first open house which wasn't happening last year.

When we sold last year in Sutherland Shire, our first open house had 20 parties through, our second around 15 then within 6 weeks we were down to the odd on or two if we were lucky. It took us 6 months to sell with 10% off the original asking price but I have noticed that FHB places that last year couldn't sell are now starting to come on the market at their original asking price and selling.

sj oldfield

We are looking at buying again at the moment, looking for an apartment...have to say they are really holding their prices!

ABCDiamond

Massive price drop (30%) in Sydney. A $20m property sold for only $13m.

She had to sell as the garden wasn't the right size....

NickyC

It's funny that.

The garden size was never an issue when she had the two (adopted) older kids - now she has one of her own, the garden's not good enough all of a sudden.

Jacque

Well I do feel somewhat qualified to answer here as I buy properties on a regular basis for others, as a buyers agent

Answer is- it depends. Depends on which suburb and what price range. I mainly work on the northside of Sydney and so have been active in the lower and upper north shore. Lots of cheap units being snapped up esp in the sub $600K price bracket (FHB demand). Stock over this up to $1.2m still trading well, and most stock getting more than what their owners paid 1-2 yrs ago with few problems. Once you hit the $1.5m+ mark yes the demand is lower but I'm still seeing and competing with other buyers even at this level. Low interest rates are helping and the fact that many houses in this price bracket and above haven't increased in value much over the last 3-6 yrs.

The key is the selection of what you buy. If you cater to the highest demand of buyers ie: quiet st, near transport, shops etc, "normal" type of property for the area, nicely presented and little work to do (if any) etc then you're going to find more buyer competition than if you were looking to buy a company title ground floor unit on a main road with no redeeming features (eg no parking, balcony etc)

Demand in LNS is strong at the moment and I've missed out on a few properties for clients recently because they ended up selling at more than what I appraised them at, but there's always another property

Vicky88

Thanks Jackie, that is interesting input. I have noted that the properties I am interested in are selling. Of course I am after the usual waterviews, 2 bed plus parking. I am seeing places without parking and no views languishing. I have been following McMahons Point for a while and I notice that 2 properties have both now been marked down by about $25k however both do not have parking.

We would actually prefer to get something unrenovated so we can do the place how we like it. Nothing worse than paying top $ for something now in your style and then not being able to renovate because it's all done.

Jacque

Hi Vicky

Ah McMahons Point- nice spot

Agree with you about parking though. Absolute must for any property I think, but of course there's plenty that sell without it. It does depend on the street parking availability, of which that part of the world has very little!

I almost bought for a client in MP a few yrs back- lovely unrenovated 1+ study (sunroom) unit without parking but FAB views but we missed out by some $60K or so. Guy who ended up buying it was going to get it at all costs and paid something like $800K from memory.

You could always find something a little cheaper in the Blues Pt tower (eyesore to some, well loved by others) or else move a little further north to Waverton and Wollstonecraft and get views as well, just not of the Harbour Bridge itself.

Kooky.

Parking in McMahons Point is an absolute nightmare - so many terraced properties without designated spaces or driveways. I know, I'm in one of them. We are often parked in the next street and occasionally a couple of streets away. We thought we'd be ok after hours as there are a lot of small businesses (creatives, mainly) but failed to appreciate that they also have driveways you can't park over.

We've had an eye on the LNS market for a few months now but not quite in a position to buy (still on that damn 457). I think prices are holding - certainly in the $600-750k bracket that we're looking at - thanks to FHB and interest rates.

Artarmon units seem well-priced. Not the most exciting suburb but as area for investment property? I do know of one 2 bedder that needs renovating; mainly cosmetic but just not brave enough to take it on myself.

The beauty about living in Blues Point Tower is, you don't have to look at it. Fantastic views. If the ferries ran more frequently I'd be looking at it myself.

Vicky88

Must admit I don't really like high rises too much, as heights don't do much for me. Blues Point Tower would have to be one of the ugliest buildings in the best location. 8 Munroe Street has had some decent renovated places on - one has just sold - and they have all been beautifully renovated.

We have also been keeping an eye on Kirribilli, Cremorne Point, Mosman, Neutral Bay and not too much that meets our criteria is coming up. We see some that are ok, however we would really like a balcony as to me what is the point of having water views if you have to stand up in your lounge room to be able to see them.

I'll have to take a look at Waverton, have been casually observing Wollstonecraft as DH has family there. I also casually look at Hunter's Hill and Drummoyne. Don't really know Artarmon at all, so will take a look