Today is the first full day of Auction for 2010. Our agents were present at 4 of the Auctions (see below) today in Sydney and their feedback is that the market is HOT HOT HOT. All 4 properties were sold under the hammer today for very strong prices.
The market has not only picked up where it left off in 2009, it has surged ahead. There is a lot of demand – but there is also a lot of supply out there. In short, at this present time, there is a lot of competition regardless of whether you are a seller or buyer.
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Auction 1
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This modest 3 bedroom / 1 bathroom full brick house is a deceased estate in need of a complete renovation. This house has a small, but level backyard and is bright. Although it is situated in a prestigious suburb on the Sydney North Shore, it is not near the rail.
The selling agent was marketing the property at “Over $950,000”. This house sold at Auction today for 1.25 million.
Exactly one year ago in February 2009, OH Property Group helped its clients to purchase a similar 3 bedroom / 1 bathroom full brick house directly across the road for over $400,000 less. Our clients’ house is on the lower side of the street which does not have as level a backyard. However, the house is in a much better condition and is equally bright. Today, our clients came to watch the Auction of their neighbour’s house and were understandably thrilled that they purchased their house at such a bargain. We are equally delighted for them!
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Auction 2
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This 3 bedroom / 1.5 bathroom full brick house was being marketed by the selling agent at “Over 1.2 million”. This house sold at Auction today for 1.345 million.
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Auction 3
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Protracted bidding which began at $900,000 for this 4 bedroom / 3 bathroom house eventually ended with the hammer falling on 1.251 million.
Both the houses of Auction 1 and 3 are only 5 minutes drive apart. For a nearly identical price, our agents feel that this property is a much better buy than the property of Auction 1 (which is much smaller and in need of significant renovation).
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Auction 4
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This 4 bedroom / 2 bathroom full brick house was last sold in April 2009 for 1.172 million. Only 10 months later, this property was back on the market.
The selling agent was quoting it at around 1.2 – 1.3 million and today it was sold for 1.4 million in front of a packed crowd of over 50 spectators. The reserve was set at 1.325 million.
Our agents inspected this property prior to both sales. No significant renovations have been made to the house prior to the most recent sale. Only minor cosmetic changes such as wardrobes, carpet, laundry and decking.
That the same house sold for $228,000 more than it did 10 months ago is an indication of (a) continued strong demand for houses in good location; and (b) the upward momentum of Sydney real estate which has remained resilient despite the global financial crisis.
Sydney property market has now been rising steadily since January 2009 and shows no sign of slowing. While the demand from first time home buyers have eased since the phasing out of the First Home Owner’s Boost, we are seeing savvy investors and upgraders actively searching for good buying opportunities.
About Oliver Stier
Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.
