As a lawyer practising in the area of property law, I am often asked about what is happening in the property market. We are currently living in time of great uncertainty, with the COVID-19 pandemic impacting not only how we go about our daily lives, but also the economy - in a significant way.
Daniel Baran, Associate Director at LJ Hooker Double Bay has lived in the Eastern Suburbs for his entire life, and has been buying and selling real estate for over thirty years. It would be hard to find anyone with a deeper understanding of the property market in Sydney's Eastern Suburbs - so I was interested in Daniel's insight with respect to how this particular market is currently performing, and what we might be able to expect in the future.
Despite what you may hear, the Eastern Suburbs' housing market continues to strengthen - much of which stems from a chronic shortage of listings, combined with low interest rates.
Daniel is amazed that in the current environment, demand from buyers in the $3,000,000 to $15,000,00 range is still strong.
At present, for example there are:
- 3 houses for sale in Rose Bay (out of 1300 homes);
- 26 houses for sale in Vaucluse (out of 2100 homes); and
- 4 houses for sale in Dover Heights (out 1118 homes).
So, unfortunately for those looking to buy within this market, there isn't a lot to choose from.
With this in mind, it's not all bad news for purchasers. Daniel tells me that the apartment market seems to be slowing - with the exception of iconic apartments that have either views, or unique sizes and layouts.
Daniel suggests that buyers in the apartment market are holding back, waiting for prices to drop after JobKeeper finishes.
I asked Daniel to look into his crystal ball for the Eastern Suburbs market - and this is what he told me:
"My take is that apartments will drop by 5%-8% if we have an oversupply of Investments units that need to be sold due to poor returns.
Prestige apartments will hold in value.
New development stock will be affected if not priced accordingly.
Houses should be ok if stock continues to be short.
So 2021 will great to buy apartments at a discounted value.
Houses should hold their value".
In summary, it's a bit of a mixed bag depending on whether you are a buyer or a seller, and then again on what you are buying or selling.
If you have any legal questions relating to property, or a matter that you would like to speak with an experienced property lawyer, please don't hesitate to get in touch today. For further information on Sydney's property market, please contact Daniel Baran.