By Tim McQueen, Franchise Principal Aussie Surry Hills (NSW)
The latest findings from PRD Nationwide Research back up anecdotal evidence from local eastern suburbs real estate agents who report the property market is sizzling.
Prestige property buyers, many of whom dropped out of the market during the Global Financial Crisis, are back in with a vengeance, and are bidding furiously at auctions for both houses and investment apartments.
The population of the Sydney’s Eastern Beachside Suburbs reached 196,023 residents in June 2008 and this number has now busted through 200,000, with 25 per cent of households earning more than $2,500 per week.
The rental market also experienced rapid price growth during 2009 in the Waverly area by eight per cent to $540 median weekly rent, according to PRD, and indications are that growth is continuing in 2010.
Following on from the abolition of the bonus FHB grant at the end of last year, investors are back in the auction rooms as interest rates are still near historically low rates.
This spells bad news for first home buyers as they are competing with cashed up investors at auctions, while facing rent rises this year as the investors try to achieve a good yield on the prices they are paying.
Here in Surry Hills, we have seen a similar situation, with units, terraces and freestanding houses all hitting very strong prices at auction and private treaty. The area has always had a wide mix of residents, but the proximity to the city has seen property prices go ahead in leaps and bounds, especially in recent months. We are also seeing a lot of clients looking to refinance their loans, as some of the banks have been more generous than others when it has come to Reserve Bank rate variations. Helping find clients a better deal, has kept us busy as well!