It’s no secret that the Sydney property market has stabilised, after five or so years of high growth.
Owners in Sydney’s inner city certainly benefited from those years of strong price rises. And while the recent media headlines about a slow down have undoubtedly scared a few buyers and sellers, quality properties in sought after inner city areas are usually still selling for good prices. It’s just the level of competition has dropped, and the price growth is not skyrocketing as it once was.
This stable market represents good opportunities for buyers, particularly if they need to sell first, so those looking to upgrade or upsize their current property have a bit more breathing space to do so. And first home buyers may find it easier to make that initial step onto the property ladder without such intense price growth.
In terms of the figures, realestate.com.au has the median house price in Alexandria at $1,555,000 and units at $760,000 as of 2 July 2018. And figures from domain.com.au show Alexandria units average over 1900 views, with houses even more in demand receiving over 2,800 views.
Here are our observations of what the inner city property market has been doing lately:
Units not doing as well as houses
There has been a decline in prices, but especially in the units, compared to houses.
For example, in Erskineville, houses began the year with a median sales price of $1,430,000, which by April was slightly down to $1,360,000. Units had a median sales price of $911,000 in January and a slight decrease to $895,000 by April.
Vendor expectations need to be realistic
Good prices are still achievable, but the growth in the market has certainly stabilised. This means that vendors who have realistic price expectations are still achieving a fair market result. While vendors who expect the booming market of the past 5 years to continue do need to moderate their expectations in line with current buyer interest.
Lower levels of buyer interest
At our open homes, we are seeing fewer groups viewing properties and less buyers who are genuinely interested in properties. And online statistics back this up.
For example, comparing month-on-month data from domain.com.au shows that listings are down this time last year, as are views of listings online, leads and leads per listing, which indicates a slightly lower level of buyer engagement overall.
Unique properties outperforming others
Despite this, we’ve seen properties that offer something a little bit different, or that are unique, perform well compared to other properties that are more typical or expected. This could be an incredible architect designed renovation, additional parking in an area where parking is at a premium, great layout, more generous land size, or some kind of unique “wow” factor.
Median sales price houses $1,600,000
Median sales price units $765,000
Median sales price houses $1,360,000
Median sales price units $895,000
If you looking to buy or sell in Alexandria or Erskineville contact our team today.