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BUYERS GET SPECIFIC IN MARKET OF LITTLE CHOICE

Released 22 November 2007 

The overall Sydney property market remained quiet in the third quarter of 2007 with median house prices growing only marginally and the median price for units declining. However, buyer activity in mid-range, established, well-located suburbs in Sydney’s eastern suburbs, inner west and lower North Shore saw house and unit prices buck the trend to record significant increases.  

Data just released by the Real Estate Institute of New South Wales (REINSW) shows that overall, median house prices in the September quarter rose 1.48% to $538,000, while median unit prices fell by 0.88%. However, while favoured areas with good quality, double-brick homes close to public transport such as Waverley in the east and Marrickville in the inner west, recorded good prices, lack of available stock was a problem in some of these suburbs.

“People see the value in these areas and when stock comes up they are prepared to pay for it then hang on in there by fixing long-term interest terms,” said REINSW President Cristine Castle.

In Waverley, where house prices rose a bullish 12.69% to $1.5m, turnover declined 5.47% and unit prices grew 6.92% to $572,000 and turnover dropped by 15.35%. Marrickville house prices rose 3.75% to a median $623,000 and unit prices grew 5.35% to $364,000 on a declining turnover of 7.60%.

Mrs Castle says the pick up in sales in some areas can be attributed to the spring market, traditionally the time when people buy and sell. She also believes uncertainty as to when the Federal Election would be called has had a dampening effect over recent months on market activity. “With vacancy rates in Sydney now below 1% and rents on the rise, I wouldn’t be surprised if we get a late listing surge before Christmas,” she said.

Mortgage stress suburbs such as Campbelltown and Fairfield have continued to suffer with house prices falling a further 0.17% in the former and 0.15% in the latter. Turnover has increased in Campbelltown on the back of mortgagee sales and buyers taking advantage of bargain prices.

Highlighting the two tier nature of the Sydney market, records, meanwhile, are being broken. Over $29 million was realised in September for a Vaucluse property making it Sydney’s most expensive home and pipping the $28.7 million achieved a month earlier for a Point Piper water-front property. 

For more information contact Dael Climo on (02) 8267 0527.