Now I don't want to sound like I'm spreading doom and gloom but here's an eg of how the recent boom has affected sales prices today. A property recently for sale in the Hills was actually bought late 03 (height of the Sydney boom) for $1.535m. It's now been for sale for a few mths and started off in the $1.9's until the owners realised it wasn't getting any attention so has been subsequently lowered to interest from $1.5m. At it's auction last week (which I've mentioned in the Auctions thread) the only genuine bid was $1.35m. So, even if the buyers decided to meet the VB of $1.4m the original owners have then made a loss of $135k, not to mention the stamp duties and agents fees. Phew!
Jacque, Below case might not be relevant to the current market situation. In 2001 for Gold Coast penthouse highest bid was $ 1.31 million. The owner paid 4.2 million for it in 1996. Another investor paid $ 1 million in 1982 and sold for $ 960,000 in 2001.
*************************************** Dear Tropo and Jacque, 1. I believe that the examples given in the a/m post applies only to the small but highly exclusive prestige property sector, rather than the mass property market sectors that we are all talking about. 2. The nature of supply and demand as well as the pricing for the prestige property sector actually operates quite differently from the mass property market segment where most the house sales are /have taken place at the more affordable median price range. 3. The given examples only serve to indicate the kind of likely price falls in the prestige property sectors, which we can expect in the near future;- though I will expect a lesser price falls for the mass market segment within both the Sydney and Goldcoast property markets in the coming years. A 10%-20% price falls from their market peak can be expected during a typical property cycle trend. 4. For your kind update and further discussion, please. 5. Thank you. regards, Kenneth KOH
Hi Kenneth and nice to see you contributing to our new forum! It's not only the prestige market that appears to be affected at this time. Where I live, in the Hills District, the median is $505,000 for the middle ring of prices. This has dropped 5.7% from 2004 when the median was $535,000. In the top ring of prices, the median has dropped almost 12% from $617,000 in 2004 to $545,000 this year. And this is a fairly affordable suburb, when it comes to Sydney prices. At the moment, I've watched with increasing interest as properties languish on the market, and sellers drop their prices to meet the decreased demand. The market still looks sluggish to me, with a big drop off in investor activity. Until rents start to rise I really don't see anything different happening from what we're experiencing now.
********************************* Dear Jacque, 1. I would think so as the Brisbane property market is presently believed in the declining market stage of the "Bust" Phase. 2. Based on my own past investing experience in the Goldcoast property market, a 12%-15% price correction off its market peak price can similarly be expected in the Brisbane property market too. 3. From what I know the usual price correction level for the Sydney and Melbourne property markets after each property cycle boom, is about 20% off its market peak prices. 4. For your kind update, please. 5. Thank you. regards, Kenneth KOH
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