Did the eastern suburbs real estate market somehow subvert Covid-19 conditions? In some ways, yes. Prime properties are achieving pre-pandemic prices. It’s quite extraordinary. Those properties that have highly-desirable characteristics whether it be location, layout, parking, privacy, a great block of level land with a view, are being transacted as though nothing has changed.
Conversely, properties that don’t “check all the boxes”, or properties that come with complications (think of a steep block of land with no view or lack of privacy, representing a challenging build) are not moving quite as easily. In pre-Covid times, buyers in the east would compromise if all the boxes weren’t checked, such was the confidence in market values. But these days, we’re observing that those buyers are more likely to sit on their hands. The optimism around the market isn’t what it once was in that segment.
Compare that to prime property, think large blocks in blue chip locations or apartments with smart layouts in a desirable location, and family homes in tightly-held streets. These properties are achieving consistently strong pricing with short days-on- market despite the economic climate. This is a result of limited supply (a 60 per cent drop in new listings since March) and a dramatic increase in buyer activity aided by access to low interest rates.
We reported several high-end sales in May. Particularly noteworthy was the pre- auction Vaucluse sale of 32a Girilang Avenue, designed by award-winning architect Brian Meyerson. The high-tech, freestanding three-level home with ocean views attracted 60 groups of buyers during the inspection phase. It was due to go to auction, but interest was strong and it sold two weeks prior.
In the same suburb, one home that did make it to auction was 137 Hopetoun Avenue: an elegant family home with period features, modern finishes and harbour views. Seven registered bidders attended the auction in what was the first in the eastern suburbs to be held after the easing of Covid restrictions pertaining to auctions. The property was initially marketed as an expressions of interest campaign ending on 21 May. Once again, such was the interest that a change in methodology was required and an auction date was set for the week prior to the EOI end date. A price of $4.5m was achieved at auction in front of the socially-distanced limited attendance comprising seven bidders, two agents and one auctioneer.
Our observation is that great real estate is still experiencing a good market thanks to the volume of active buyers. Stock levels are down, so good properties are competitive. When something impressive hits the market, it’s being snapped up. By all reports, Sydney sellers outside the metro markets have not all been so fortunate on the pricing front, particularly where vendors are at the whim of a market with oversupply of property and limited buyers, and the sellers are under pressure to exchange the asset.
Quality listings are rare and our latest in Dover Heights is a great example of quality: 26 Lyons Road sits on blue chip land in one of the most sought-after streets in the area. The 4-bedroom home with ocean vistas has a sizable level lawn leading to the sparkling swimming pool, and will go to auction in June.
We look forward to bringing you the results of that campaign and market insights from the month of June. In the meantime, we’re always available to discuss your property or purchasing plans.
- Posted by The Goldman Brothers
- On June 2, 2020
- 0 Comment