MONTHLY MARKET WRAP: NOVEMBER 2020

November is always one of the more interesting months for the property market. Midway through, fresh listings cease in order to avoid an auction date landing too close to Christmas. The early part of November, however, is filled with listings being rushed to market and while buyer interest is peaking, this slowly starts to dissipate as the month comes to a close. Let’s be honest, we’ve all been run ragged this year. Late in November, the first conversations around buyer fatigue started to surface as many turned their attention to a summer break and just taking some time off. That said, the month finished with Sydney property prices climbing a modest 0.3% but trending upwards and the true auction clearance rate held steady near 60%.

409a Balmain Road, Lilyfield
Sold $1.872m

C&H closed out November with an 87% clearance rate from 53 auctions, achieving an average 4.8% increase above the reserve and 5.5 registered bidders at each auction. These figures are pretty close to what we were experiencing back in the 2016/17 market which was considered to be the highest point in Sydney’s property history. Damien Cooley, head of Australia’s leading auction company, Cooley Auctions, noted during the month that “While it may not be a boom market, it’s certainly a strong market” after he dropped the hammer on another successful Saturday auction for our company.

14 National Street, Leichhardt
Sold $1.92m

The penchant for property in this country is undeniable and record low interest rates plus a desire to enjoy one’s life in their abode is driving unique market conditions despite the fragile economy. Almost every buyer conversation and reason behind people’s decision to move is based on improving their life. Whether a new property delivers that outcome is an entirely different proposition but this is the market sentiment in a nutshell. During the month the State Government also revealed plans to change stamp duty and provide purchasers with the option to avoid the large upfront cost in preference of an ongoing annual property tax. The proposal is going under consideration with a target date of the second half of 2021 to commence the new tax system. In our view, the devil will be in the detail and while removing such a significant tax like stamp duty may initially sound attractive, we’re of the view that the only winner will be the Government’s coffers in the long-term.

60/18-20 Knocklayde Street, Ashfield
Sold $828k

With the year drawing to a close, attention always turns to property predictions for the coming 12 months. It’s important to note that in 2020 every major bank and financial institution got its property predictions horribly wrong. Christopher Joye of Coolabah Capital was one of the few who actually predicted that property values would decline by no more than 5% as a result of the pandemic and prices would actually increase by 10% over the next few years. As it stands, national property values fell just 1.7% and every capital city is now recording price increases. In turn, every major bank back-flipped on its predictions and they’re now suggesting property prices will increase in 2021 anywhere between 5-10%. Will they get it wrong again? In our view, we’re already seeing price growth and the first quarter of 2021 is likely to be quite dynamic.

29 Miller Avenue, Bexley North
Sold $1.28m
5 David Street, Concord
Sold $1.975m

Posted in Uncategorized on 30th November, 2020