Labelled the Covid-Boom, we pass the first two quarters of upward price drive across most of the nation and are handed a half-time break in the form of a lock-down across Sydney. Whilst the market continues to soar, with record numbers of private showings, owners and buyers are taking the extra time at home to re-evaluate their current assets and lifestyle goals. Home-time re-kindles a connection to property, a major catalyst in the FY21 housing boom. April 2020 temporarily paralysed the Sydney market however; this year a leaned and confident sentiment is in the air. As we approach one month of lock-down, no sign yet of a slow-down.
There are still notable changes. The ratio of housing to apartment stock has partly evened out. House sellers, further along the property chain are still high on confidence and capital continue to list their homes. Single-asset apartment sellers, on the other hand aren’t hitting the market at the same rate this month resulting in a higher concentration of buyers per listing.
Ex-pat demand is on the rise across the Eastern Suburbs and Lower North Shore following a return home by Sydney natives working overseas over the warmer months. Establishing a more permanent lifestyle secured by blue-chip real estate is high on their agenda having recently settled in and reviewed their finances and future plans. Focus is on houses for the most part, however level garden apartments closer to the CBD or airport have also been popular with young boomer ex-pats who own outside of town looking to “keep a foot in the Sydney market” and have a city base.
Investors haven’t returned in numbers, which won’t happen until rental values rise. The lure of a higher yield and lower entry point combination in other capitals and regional areas is too appealing. With overseas travel banned, and strong market reports these buyers are exposed to opportunities within Australia which they had not previously considered. Industrial and commercial markets give us hints on where to invest. North Queensland has begun a recovery phase, most Australian markets are mid-flight, and the Gold Coast is now peaking, having spent years in the doldrums commercially. With Brisbane now hosting the 2032 Olympic Games, savvy investors, prepared to do a little homework have outstanding options and a perfect precedent, the Sydney 2000 boom. Initially look to industrial areas in close proximity, or large lots on main transport routes on the edge of commercial zones and adopt a buy and hold land-bank strategy until further notice.
On the front line we have been adapting. One-on-one private viewings, often one after the other have replaced our open homes. Auctions have successfully been conducted via zoom and our company has sold about 50 homes since day one of lock-down. Having more solo time with the buyers albeit with a face covering has been a delight with quality conversations and insightful feedback to vendors. A stark contrast to the front door queuing-up and shoulder-to-shoulder open homes one month ago. My team have had the strongest 6-month period since 2016, a 90% Auction clearance rate with 20% of listings selling for a premium before hitting the market.
This month we offer desk-top appraisal reports to those reading this newsletter. By clicking this link you may request your report based on the address and description. A CMA analysis will be sent back within the following days which additionally includes a full data export of the street, or building (if available or applicable also your strata-plan) and an estimate without any strings attached or physical inspection- Billy Couldwell
Sales Reports- June- July 2021 by Council LGA