Facebook Twitter Linkedin Weixin Instagram Weibo

2017 Real Estate Market, Sydney and Melbourne had very intense competition

15 Jan
The 2017 property market has ended with the new year’s fireworks. All Australians also returned to normal working patterns, and the lively year-long real estate market also came to an end. As the two major international cities in Australia, Sydney and Melbourne’s real estate market performance, has been used as a benchmark for the entire Australian real estate. However, judging from the latest market trends, these two major cities seem to be experiencing quite different market characteristics. As a result, the two major cities can be described as “one and the same”.
December 9, Sydney’s second-hand housing auction sales rate came to its lowest point in two years, only less than 60% of the real estate sold in the day’s auction. Over 100 owners opted for a plan to rescind the auction because of a premonition that the market was deserted. In fact, Sydney’s weekend auction of second-hand homes has never stood at 70% since October 28, 2017, and the 70% take-up rate is often viewed as a benchmark for hot and cold markets, Above this figure represents the seller’s market, housing shortage, and below this figure, the market is relatively deserted.
(Sydney Auction King on Dec. 9, this waterfront property in Birchgrove sold for A $ 7,225,000.)
The cooling of the Sydney market is partly due to the increase in market supply. According to Domain, buyers in the Sydney market grew by around 20% more in the spring-summer 2017 than in the same period last year, and buyers are beginning to be cautious. Many believe that by 2018, There can be more opportunities.On the other hand, after five years of bull market, the expectations of Sydney sellers are clearly unlikely to drop too much overnight. A real estate agent said buyers seem to be more sensitive to market changes, they become more cautious, and sellers seem to be immersed in the bull market over the past few years.

(The auction trend in the Sydney market for the past 6 months has seen a significant drop in the pat rate.)

In stark contrast to the deserted Sydney, the good news in Melbourne seems to be coming. According to the Australian Financial Review, in the suburbs of Melbourne, land prices soared 6.5% in just one month in November. Today, buying a piece of land around 430 square meters in these areas reached 318,500, which means that Build a separate house on this piece of land for a total of nearly 600,000 Australian dollars.

A year ago, Melbourne’s land median price of 242,500 Australian dollars, and after the 2008 financial crisis has been at a steady growth rate. But over the past year, land prices began to rise rapidly as a result of the rapid population growth, and now the land-price gap between Melbourne and Sydney is rapidly shrinking.
(The price of land in the Melbourne part of the past year has seen spectacular gains.)
At the moment, market participants’ main concerns about the Melbourne market have turned to fears that if such an rally persists, it will be unbearable for many first home buyers. Real estate consulting firm BIS Oxford Economics estimates that the 2018 Melbourne land market will be slightly deserted and more people will choose to buy or lease apartments. According to the latest CoreLogic data, apartment prices in Melbourne rose 2.4% in the three months to November, with areas such as St Kilda dropping vacancy rates from 1.9% to 1%, meaning almost A rental house found a new tenant before the former tenant moved. (Quarterly changes in house prices in all capitals in Australia in 2005-2017.)
The so-called three decades Hedong, Hexi three years. The Sydney market, which rose for years ahead of all other cities, has finally shown some signs of weakness in the second half of 2017. In the third quarter of this year, Sydney’s apartment and townhouse properties posted the biggest drop of 1.4% in six years, while the price of detached houses also dropped. Although the adjustment is not large, but basically can be understood as a sign of the turning point in the Sydney market. However, due to the lackluster performance of the Sydney market, even the performance of the national housing market in Australia has been affected. According to data released by ABS, the National Real Estate Price Index fell 0.2% in September from a forecast of 0.5% previously by economists.
However, the market for Sydney’s performance next year, perhaps not as bad as you think. In NSW’s NSW budget update this Thursday, the government made a prediction of 2018 Sydney property prices – up 1.8%. Although house prices will still rise, this increase has dropped sharply from a year-on-year increase of 6.2% as of September this year.
In the meantime, the government’s expectations of future stamp duty taxes have similarly dropped, as next year will be an important time for first-time home buyers to continue to “dominate the market,” and many of them will choose to buy first- Listings. The Melbourne market, however, is expected to see next year’s performance under the multiple favorable conditions of rapid population growth, first-time home buyer subsidies and affordability. Whether it is downtown living convenient apartments, or suburbs of the independent house, have attracted the attention of different stages of home buyers. For example, well-known developer Stockland in Melbourne, a newly developed real estate, it received 7,500 buyers consultation. The developer official said this is “a strong demand never seen before.”
Platinum realty investment group’s  point of view
Both the cold Sydney market, or Melbourne’s heat, in fact, from the real estate market point of view, are the normal performance of the market cycle. In the long run, no city or region will always be in a leading position in the real estate market under the condition of rapid growth. Any city will experience cycles from peak to trough and then peak again. That is what we know about real estate Clock theory. It is precisely because the cycle of the real estate market cycle is inevitable, so investors learn to rational use of this phenomenon to their own portfolio layout is very important. Platinum realty investment group This diversified approach gives investors a distinct strategic advantage by helping investors hold different types of properties in different regions while avoiding excessive pressure.
With help, investors are able to reach their goals faster. As interstate purchasing power continues to rise, coupled with more flexible real estate options, investors can more easily acquire and hold property for long periods of time.If you would like to learn more about how to help your property investment, contact Platinum realty investment group or call your dedicated investment adviser now!

Leaver a comment