Is The Market Hot?

 

Hot in the Sydney Real Estate Market?

 

This is the question on everyones lips at the moment. Is the Sydney Real Estate Market so hot that we are on the peak? Is the bubble about to burst? And can this market be sustained?

 

This is a complex question but in my (humble) opinion drawn from our activity and experience as a Buyers Agency in the Sydney Real Estate Market not all of Sydney is going gang busters.

 

There are definite “hot spots” through Sydney and the primary driving factor, or the underlying thread, is public transport and access to this most important city infrastructure.

 

The inner west suburb of Sydney, Newtown, would have to be the biggest contender in our experience as one of the hottest suburbs. Now that the 2015 real estate market has kicked off, the most current sales price achieved is best described as over-heated and powerfully strong. A sale last week of a 1 bedroom, single storey cottage in relatively good order (i.e liveable and rentable) sold through auction for $840,000. A 3 bedroom semi-detached home unrenovated sold for $1,015,000. Whereas a sale for a 3 bedroom renovated home in Newtown sold in late October 2014 for $1,025,000. The market movement has seen a sharp increase.

 

Can this be sustained? The answer (again in our opinion) is that this will be driven demand and suburb buyer confidence. It will also be driven by the “investor market”. I already know that investors and small property investors are starting to search elsewhere and this is usually a sign that the suburb market may be beginning to peak.

 

The real reason is supply and demand. All over Sydney there is just basically not enough homes for the demand: Manly, Five Dock, Elanora Heights, Balmain, Forest Lodge, Camperdown and especially Concord are just some of the Sydney suburbs that are also becoming desirable.

 

But remember, Sydney does not have enough houses for the number of people needing accommodation therefore although some suburbs may be starting to peak, start looking slightly further afield.

 

In my next blog I will name some suburbs that we believe have growth still left in them and represent good value.

 

Kathryn

 

The information in this article is of a general nature. While care has been taken preparing this information Kathryn Hall Real Estate does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any other purpose that the article may be used. Kathryn Hall Real Estate accepts no liability for any loss or damage (whether caused by negligence or not) resulting from use of information.

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Is The Market Hot?