MONTHLY MARKET WRAP – JUNE 2020

There was no sign of any June gloom for our local property market. In fact, we continued to experience resurgent buyer demand with a select number of properties producing stunning sale prices.

As other sectors of the economy continued to contort, local property gathered positive momentum. Fuelled by record low levels of new listings, supply and demand metrics have tilted well in favour of those selling.

With improved buyer sentiment it was blue-chip real estate that drew in an extraordinary level of enquiry and buyer demand. Number 13 Slade Street, Rozelle attracted 105 buyers to the first open home inspection, while the architectural and building masterpiece at 52 Llewellyn Street, Balmain deservedly hit a record sale price. Number 8 Linthorpe Street, Newtown became one of a growing list of properties which sold significantly above their set reserve, fetching $400,000 above expectations.

There is no doubt that the improved market conditions experienced in June have caught almost every market and financial commentator by surprise. After COVID-19 and the economic downturn, job losses, salary reductions, Government stimulus, people tapping into their super and mortgage holidays all simultaneously operating, how is it plausible that people are queuing up to buy property?

 It’s a challenge trying to unpack the psyche of the current property buyer however a few theories are being touted. One theory in particular is resonating through conversations we’ve had with hundreds of buyers throughout June, which is that during lockdown many people realised that their existing housing situation was inadequate in some way.

It appears that many are fast-tracking plans to shift up or down the property ladder so they’re more comfortable, be it through additional room, a different location, improved work-at-home space or even to improve their financial position.

It’s been an unbelievably surreal period for everyone and it doesn’t appear as though the world as we knew it will be returning any time soon. How we set up our local lifestyle was important before, but it’s been elevated even further now.

We can see the shift playing out in front of us as individuals, couples and families look to adjust their accommodation almost as an additional layer of security should we ever be in a lockdown scenario again.

It’s without question that the way we used to work has shifted as well, with more of us spending time working from home and in need of a peaceful sanctuary to be effective. Local builders, architects and designers are also pivoting to accommodate larger work-from-home spaces, and don’t be surprised to see a new acronym of WFHS appearing on floorplans soon.

 Will July continue to see buyer demand increase? We suspect not because in the closing stages of June we started to see listing numbers improve as more potential sellers saw evidence of strong prices being achieved. However, July should still see a far stronger property market than anyone would have predicted only a couple of months ago.

June Signature Performers

5 Minogue Cresent, Forest Lodge
207/1-5 Little Street Lane Cove
13 Slade Street, Rozelle
60/90 St Georges Crescent, Drummoyne
79 Newington Road, Marrickville