Readers will know I have been relatively bullish on the Sydney property market for the past three years, especially on inner-ring suburbs close to the CBD and transport. There will come a time, perhaps this year, when market sentiment will change and we will experience a flattening of prices. I feel we may be on the cusp of this now but there are insufficient catalysts in the market to bring about a real change in affordability. Sydney is recognised now as the second least affordable city globally behind Hong Kong, granted it’s arguably the most beautiful and desirable city to live in so there is some logic here.
In order to affect a change in affordability, I believe nothing short of a significant increase in interest rates will bring about real changes in house prices. My personal view is that the broader Australian economy is not strong enough to withstand rate increases currently so we are likely to see inflated prices or perhaps a mild flattening over the remainder of the year.
In and around Lane Cove, we’re seeing extreme demand for houses and land, driven by very tight supply. 13 Panorama Road sold in recent weeks for $1.92m, a property viewed as an entry point into a quality location by many. 15 Fox St sold for $3.1m with 21 bidders registered, raising the bar for Lane Cove houses and the sale of 4 Ann St in Longueville set a new benchmark for the area. We sold a 1 bedroom apartment, 216/14-18 Finlayson St for a record price of $770,000 showing demand for prime locations.
If you have any questions regarding these recent sales and my upcoming listings or would just like some advice on your own home, please feel free to call me at any time.
– Paul Nees