Balance returns to the post-election property landscape

After the extraordinarily heated market that we experienced last year when Sydney property prices rose an astronomical 24 per cent, it was only a matter of time before we returned to a more balanced environment.

Do not put too much stock in the doom and gloom constantly reported by the media. While prices have come off marginally, our local market is holding strong. Now that the frenzy is over, buyers and sellers find themselves on a more even playing field, and that is a good thing for the market.

With the uncertainty of the Federal election behind us, we are seeing listings ramp up again, with this week’s Sydney auction numbers double that of last week’s. We are also seeing plenty of demand to meet supply.

According to Ballard sales agent Brooke Marshall, “There has been increased activity from buyers wanting to purchase now and lock in while the interest rates are still very low, before the next rate increase occurs. I’m also finding that more and more vendors who require extra space are now opting to move to avoid rising building costs and a shortage of supplies and tradespeople, whereas previously they may have chosen to expand their current home to avoid paying stamp duty.”

In May, we sold $47 Million worth of property with an average sale price of $3.5 Million, including numerous sales over $5 Million.

To highlight the inherent strength that remains in our market, we sold 21 Rodney Street, Dover Heights prior to auction after just two weeks on the market for $9.9 Million, a new per sqm suburb record. 

We also transacted 13 Busby Parade, Bronte in just 12 days for a street record of $7.9 Million and 10 Day Avenue, Kensington off-market for $6.3 Million, a new suburb record and the fifth time the James Ball Team has broken the Kensington suburb record in two years.   

Possibly our most impressive result yet was 1 Marroo Street, Bronte which sold prior to auction after just seven days for $5.2 Million, after the vendor paid $3.2 Million just 18 months ago with no improvements made, netting a tidy profit of $2 Million.

This type of strong activity at the upper end of the price spectrum is quite typical of a ‘balanced’ market, where the appetite and competition for top-tier properties is robust.

More standard properties can still expect to sell well, however buyers now have more choice and are in a better position to negotiate prices and terms, can take their time when purchasing and can expect vendors to meet them half way.

If you would like to discuss your next property move, contact us today.