Market Report: March 2020
The property market in Sydney’s eastern suburbs began 2020 with a bang.
Normally, the summer holidays can be the most sedate time of year in the property market. However, according to CoreLogic’s figures, property prices across Sydney lifted 4.9% in the three months to February 2020.
This followed on from a strong second half of 2019, in which the median Sydney dwelling price rose almost 10%.
Market returned to 2017 levels
These gains brought the Sydney property market almost back to its 2017 peak and were the combined result of high confidence, low-interest rates and strong competition between buyers.
Sydney’s auction clearance rate was regularly over 75% in late 2019 and early 2020. In the eastern suburbs it was higher still, frequently exceeding 80% or 85%, according to the Wentworth Courier.
Anecdotally, over this period we were seeing buyers coming out across the board, at all price points. A standard open home would attract many many groups in healthy numbers.
Even at the top end of the market – those homes valued between $10m and $20m – we’d regularly have around 25 groups inspect a home, including several interested parties.
It was common to receive pre-auction offers – sometimes multiple offers – as buyers scrambled to secure a home away before it went to the open market.
Strength continued despite early knowledge of Covid-19
This confidence in the Eastern Suburbs property market continued up until mid-March, even as the potential impact of the Coronavirus was becoming known.
One house in Surry Hills, 177A Albion Street, Surry Hills, attracted 54 groups through its first open home – a phenomenal amount of interest.
This one-of-its-kind 4 bedroom/4.5 bathroom grand Italianate home showcases the renowned architectural mastery of Renato D’Ettorre. It features a four-car garage, indulgent bedroom suites and a rooftop terrace with 270-degree views.
While we’re no longer able to hold open homes, potential buyers can inspect the property by appointment and there’s a detailed video walkthrough tour on our website (just one of the ways we’re still operating as normal). We expect a large amount of interest in this home, despite any current uncertainty.
The outlook
Of course, the impact of Covid-19 on the market more broadly remains unknown. While we’re known for our success with off-market sales, the reality is the most properties in Sydney’s eastern suburbs go to auction.
Now that real estate agents are restricted from holding these in-person, it will be interesting to see how buyers adjust to auctions online.
More importantly, we’re waiting to see just how deep the impact of coronavirus is both on our collective health and on the economy.
However, we know that no matter how long the lockdowns and restrictions last, normalcy will return. When it does, the same fundamentals that have always made the Eastern Suburbs property market one of Sydney’s most desirable, will still be there.
Key sales in the first quarter of 2020
10/20 New South Head Road, Edgecliff
SOLD $695,000
This one bedroom, classic art deco apartment in an excellent location near Rushcutters Bay received a lot of interest from investors and first home buyers and sold within 48 hours after some intense competition.
Price undisclosed
This landmark federation residence offers 6 bedrooms, park views, is just 200 metres to Oxford Street and Woollahra Village, and sits on 950 sqm. It had been on the market with different agents for over 18 months, prior to our campaign.
SOLD $6,100,000
Set on 367 sqm of land this 4 bedroom property sold under the hammer after a competitive auction with numerous registered parties. Its many appeals included its excellent location in the heart of Woollahra, and a DA for a double garage and pool.
If you’re interested in buying or selling in Sydney’s east contact my team today.