With talk the ‘Property Boom’ is over, and concerns that rising interest rates could make property even less affordable, property buyers we are currently talking to daily, are all asking the same types of questions;
- Is this the right time to buy?
- Should I wait before I buy?
- Are prices going to fall further?
With a 1.6% decline in Sydney prices in the last quarter of 2017, it’s perfectly normal to have these questions.
However, that number is an overall number and includes ALL property types across ALL areas of Sydney.
In our opinion, the following specific types of properties are more likely to experience further declines, and if you are looking to buy one of these, we recommend you move very carefully.
Please factor into your offer, potential further drops in prices, or even wait to see if prices ease further before you purchase.
These types of properties include:
- High rise apartments in the Waterloo, Alexandria, Canterbury, or other Inner City or Western Suburbs areas where an oversupply of high rise units is likely
- Properties on busy main roads that are effected by road noise
- Properties that are dark internally, and need the light on during the day
- Properties located further than 45mins from the CBD, or any other high paying employment
- Locations that have very poor access to public transport
- Properties affected by mould and moisture issues
- Properties with expensive structural issues to repair
- Properties that lack privacy and can be seen into by multiple other properties
- Properties that have no outdoor area and no parks nearby
- Steep land or difficult to access properties
- Difficult to finance properties (Company Title, Apartments less than 50m2 etc.)
- Located adjacent to upcoming major developments that will adversely affect the natural light, privacy, or views of a property.
- Especially properties with a combination of the above
During price booms, even the above types of properties sell quickly, as buyers who miss out on their preferred options often make do with whatever they can get.
As we return to more normal market conditions, the types of properties listed above struggle to sell and bargains can often be found.
However, if you are looking for a property with one or more of the following below traits, then you will find there are still multiple keen buyers, and competition will continue to push prices higher, albeit at a more moderate rate.
The types of properties that are still in high demand and are likely to continue getting more expensive, have one or more of the following attributes;
- Within walking distance to the beach or harbour
- Have good natural light internally, especially in the living areas
- Located on quieter streets, yet still very close to amenities
- Affordable family size homes in top ranking public school catchment areas
- Character style homes in good condition with original features (Federation houses and Semi’s, Art Deco apartments, Californian Bungalows, Victorian Terraces)
- Houses or semis on level blocks with good size private backyards
- Apartments in well maintained boutique blocks
- Ground Floor apartments in areas where downsizers like to live – and a short level walk to amenities
- Properties with good renovation potential
- Affordable apartments with a high rental demand
- Locations that have a “walk to everything” convenience
- High ceilings, well-proportioned living areas, and good ventilation
- Living areas that flow seamlessly into a private outdoor area
- Views of water, beach, or even a district outlook
- Properties priced around the median price point for that suburb
- Properties located less than 30 minutes from high paying employment
- Locations serviced by multiple types of public transport, providing quick travel time to CBD
- Locations where significant infrastructure is being built to improve convenience
- Locations with an easy walk to shops, cafes, restaurants, entertainment
- Especially properties with a combination of the above
If your search includes multiple items on this 2nd list, we recommend you take action to secure the best possible property for your budget, sooner rather than later.
Price drops for these types of properties have never been significant or prolonged in the past, and seem very unlikely moving forward.
If you would like to discuss any of the above, and how that relates to your own specific future requirements, feel free to contact us on 1300 132 970 for a chat.
