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Randwick Report – July 2017
Sydney’s Real Estate market currently presents an interesting time for property owners. Property prices over the past 12-24 months have soared, creating an unprecedented year of growth and unbelievable sale prices to reflect this. Sydney’s Market is now beginning to plateau, with property values still increasing, however at a declining rate. As the market is seen to have ‘peaked’, now should be viewed as the perfect time to sell property, capitalising on the recent market growth as well as reducing the risk of a potential drop in property values in the coming months.
The Randwick market has been trending slightly ahead of Sydney’s pace, achieving exceptionally large growth in 2015/2016, and a lean towards slowing growth coming up to the end of 2016 and early 2017. Randwick 2017 has fashioned a large numbers of buyers ready to enter the market. With interest rates at an all-time low, buyers have been greatly incentivised to purchase property, securing favourable mortgage conditions. Coupling this with a shortfall of owners looking to sell in the area, many properties are selling for a price far greater than anticipated, due to these elevated levels of buyer competition. Now represents the ideal time to sell, as the perfect Low Supply/High Demand relationship exists. With Spring and Summer just around the corner, many vendors will be contemplating listing their property to take advantage of favourable weather conditions. As the listings increase, buyer competition spreads among a larger property base and the high demand benefit diminishes. It is my recommendation that the months of July/August represent the best opportunity to achieve the maximum sale price for your home, taking advantage of these aforementioned market advantages and timing.
Over the past 5 years there has been an increase of approximately $800,000 on the median sales price of properties in Randwick.
Gradual reduction in sales per year in Randwick. Buyers are paying above and beyond for Randwick properties, and then holding on to their investments/not relocating for greater periods of time. This in part has contributed to the immense property value rise seen in the last 2 years. With more people trying to enter the Randwick market than those wanting to leave, prices are once again pushed up due to the demand.
Gradual increase of Median Sale prices for Units over the past 12 months, achieving 9% growth in this period.
Gradual increase of Median Sale prices for Houses over the past 12 months, achieving 11% growth in this period.
The Randwick area houses a majority of couples and families, whereby more than half of all residents fit this demographic. Trends suggest that younger couples seek to buy in Randwick, holding these properties for increased periods of time before upgrading to a larger family home as their requirements change.
The Randwick market at present is experiencing exceptionally high levels of consumer interest. More than double the average number of searches are performed on Randwick property compared to that of the rest of New South Wales. With such high demand, it is no surprise that Randwick has experienced overwhelmingly positive sales results over the last 2 years.
Prince of Wales Hospital Expansion, Randwick
The NSW State government has announced plans to redevelop and expand the Prince of Wales Hospital in Randwick. This project consists of a compulsory buyout of 88 properties in Randwick, 62 of which are privately owned. There has been huge dismay among residents over this decision, many of whom have lived in their respective streets for many years. The effect this compulsory acquisition will have on the greater Randwick market is that there will be 62 families with similar circumstances, who will all be looking for competing properties to buy once they are unable to remain in their current residence. As the market is presently saturated with buyers, and with relatively low levels of property listings, properties in Randwick will achieve sales results above the expected price point. Even as the market begins to plateau, buyers will seek to pay a price premium in order secure a property that presents a similar lifestyle to what they have grown accustomed to. It may well be too early to know what sort of compensation the government will give to those residents forced to sell, however this information will likely influence the extent to which property in Randwick fluctuates in price of the next few months.
Brad Pillinger has an exceptional track record in the Randwick Area. Owners who have sold through Pillinger have experienced an average profit per year of investment of $89,000, and an average gross profit of more than $1.1 Million.
Pillinger aren’t your ordinary agents. We seek to genuinely understand the values of our clientele so that we can deliver a service that exceeds all expectations, and delivers an end result that leaves all parties delighted with what we achieved together. Pillinger has achieved such astounding results due to the best practice processes and systems we have tweaked over many years in Real Estate. The same dedication, energy and commitment are shown to every property listing, whether it be $1 million or $60million, and this is evidenced by the high levels of time put in to delivering the best all round service possible.
For any further questions or assistance, or for a chat regarding the contents of this report, please do not hesitate to contact us at any time.
Provided to you courtesy of Brad Pillinger.
(Source: RP Data & realestate.com.au)