2021 PROPERTY MARKET KICKS OFF WITH A BANG

Buyer attendance at our open homes has hit the highest levels we’ve ever recorded. So far this year we’ve auctioned 11 properties with the average number of bidders per auction sitting at 11.5. Our properties have achieved an average of $113,000 above the set reserve and we’ve had a 100% success rate.   

In fact, the market is so heated that in many cases we’re shortening sales campaigns and bringing the auction forward due to high demand, with multiple buyers looking to put forward strong pre-auction bids following the first inspection. It’s a touch surreal as the surge of buyers heavily outweighs the number of properties on the market. According to realestate.com.au, over the past six months Balmain, Rozelle, Lilyfield, Birchgrove and Annandale have all had more than 1 million buyer searches, and Annandale was the fifth most searched suburb in Sydney.

2/6 Ocean Avenue Double Bay

Over the past week we’ve seen some extraordinary results. Anthony Ross sold a gracious whole-floor four-bedroom apartment at 2/6 Ocean Avenue, Double Bay. He comments, “The property was scheduled for auction however after 2.5 weeks on the market there had been more than 100 buyer inspections and almost 20 contracts issued. We received an offer of $350,000 over our price guide, and as a result the owners made the decision to sell prior to auction. Some competition followed, driving the price north of $2.55m. Needless to say the owners were ecstatic.”

10/430 Darling Street Balmain

Mark Bowis sold a stylishly transformed townhouse at 10/430 Darling Street, Balmain, commenting, “We had a really great response to the property and over a period of two weeks we had 224 groups through and issued 64 contracts. From the first open we had immediate strong interest with a number of interested parties keen to make offers straight away. Due to this high level of interest we brought the auction date forward a week. Auction day saw 26 registered bidders with the property selling for $265,000 above reserve. I believe this was due to the pent-up demand in this affordable price range coupled with low interest rates. Many buyers had hit pause on their search last year and have now re-entered the market.”

18a Chapel Street Lilyfield

Ben Southwell sold 18a Chapel Street, Lilyfield, noting, “This sale yet again confirms that the consumer is screaming for honesty without the sales pitch. Our discussion around the owner’s price, what we felt is was worth and our detailed understanding of the product was instrumental in a smooth sale.”

The major question now is how long will this environment continue? If data continues to trend in the current direction, we believe the regulator APRA will need to step in and tighten lending policy to calm the waters. That said, the last time they stepped in to cool the market in 2017, they tightened lending to such a degree that the market came to an abrupt holt. Hopefully, past actions will still be top of mind and any tightening measures will be more subtle.                           

As we move into February we’re seeing some of the best listings for the year enter the market as we kick-off the campaigns for several high-end residences. While it’s only the start of February, we’re already booking auction campaigns to be held the weekend before Easter which lands on the first weekend of April this year. Essentially, there’s two months of activity until the next official break and we suspect this period will continue to break all Sydney property records. Also on the agenda this year is a major shift in how we pay stamp duty which will be very interesting, along with the ongoing economic movement from the virus. So strap in as we build on the strongest start to the property market we’ve seen in 20 years.