With the onset of Spring comes renewed confidence following the announcement last week by Prime Minister Scott Morrison that Australia has secured rights to manufacture millions of doses of the potential Oxford University vaccine. He has also called for COVID-19 restrictions to be eased in time for people to see their families at Christmas and looks forward to a positive 2021. A long awaited return to some kind of normality is thankfully in sight.
The much anticipated Spring selling season is finally upon us and if Auction clearance rates over the last two weeks are any indication, it’s sizing up to be a great Spring. Auction volumes are at higher levels compared to this time last year, which saw a more subdued winter market. 2037 homes were reported listed over 4 weekends this August compared to 2458 over 5 weekends in July, compared to August last year when 1941 properties were auctioned over 5 weekends.
Not only are Auction volumes higher than this time last year but the median Auction price in Sydney for August was at $1,190,000 which is just a fraction below the $1,200,000 median recorded for August last year.
When taking this and any other commentary you read into consideration about the state of the property market, it’s a good idea to bear in mind that Sydney is made up of a number of smaller markets that can sometimes move in opposite directions. Certain segments of our markets are holding their values, some are increasing and others are in decline.
Recent data compiled by realestate.com.au shows the prestige property market is surprisingly flourishing despite the pandemic and economic recession. A shortage of homes and investment properties available compared to buyer demand means property values in certain locations are creeping up. It would appear that the best performers are premium suburbs being driven by demand from professionals who are still employed and may have only had minor cuts to their incomes.
On the other hand, areas where there is an oversupply of apartments, are experiencing a decline in sale prices and buyers need to be aware of the implications this may have for the growth of their asset should they decide to purchase in these areas.
Locally, we are definitely experiencing this flight to quality in Sylvania Waters. People are generally not spending their money on things like overseas travel, lavish weddings, or nights out which has increased their levels of savings over the last 6 months and is set to continue into next year. This means more people have more money to spend on improving their living situation through purchase of premium property.
Currently, properties that are well located and in good condition are selling quickly with a queue of buyers waiting to inspect. It’s for this reason we are finding more and more sellers looking at off market sales which is becoming increasing popular. With low stock levels and high demand, we predict this upward pricing trend will continue well into 2021.
Should you be looking to buy or sell in the Sutherland Shire, please contact the team at djw property on 9544 9688 for a confidential discussion.