Sydney Property Market

Sydney Property Market.

For any of you that know me, you would be aware that I am one of the last people who you’d expect to promote ‘bullishness’. I have seen too much money lost, pain and emotional distress caused from overextending one’s self to play the perennial bull like some of my counterparts. In almost a decade at www.oasisproperty.com.au and much longer as an investor and developer of property, I have come to learn that experience in property is not saying 'yes' to everything - but holding your ammunition for the good times.

Times like this!

For those of you that have been considering property in the past few months, here are a few reasons why I believe this is one of the most exciting times the property market has presented in some 3-5 years, inclusive of the GFC.

Expat Buying on the horizon

I could honestly say that if my own database of expats (sitting on the sidelines waiting for the $AUD to come down) all called me tomorrow to purchase for them I’d be busy for years, (keep in mind our Buyers Agents division purchases over 100 properties per annum). The current volatility in the $AUD should give us a little reminder that there is some medium term relief on the horizon for the Aussie dollar.

Vendor Expectations Down

Vendors with pipedreams of record prices have been well and truly educated by the market that this isn’t a time to dream. It’s a time to be realistic. “Price them low and watch them go”, is the new mantra being adopted by the savvy agent. As an example, I purchased a property for a client a week ago week for well under $2m that had expectations at the start of the selling process for $3.5M+.

Interest Rates

While many of us have been anxiously waiting for the RBA to ‘kick the can’ and help the little Aussie battler out, it seems the major banks have done some of the heavy lifting for them. We all remember that fateful Melbourne Cup Day when CBA took their rate over and above the RBA cash rate. To give the banks some credit however, we all suspected they had bought themselves some extra margin that they always intended to give (some) back, when they needed it. Now is that time and we look forward to the interest rate war!

Now, in the space of only 3 days, we saw fixed rates come down to 6.99% (5 years) and 6.59% for 1 – 3 years, and still with many other banks to respond with their own rate cuts. (*) At the time of writing this, the chances of a rate decrease in November are 75%. (14 days away!)

Note that I don't expect the window of opportunity to snatch a great rate will be open for to long. If you are considering locking in your rate, I'd think about it in the next 2-3 months.

On this note, aside from our Award Winning Buyers Agency, we have also won Business Operator of the Year (2010/11) for our Mortgage broking division and Top 15 in Australia Broking Award (**). Our volume and credibility have awarded us ‘Platinum’ grades of service that not only gives us the buying power to achieve the best rates, but also executive level service for every customer.

Rental Expectations

I still see no let up in the low vacancy rates and the stress this is causing for prospective renters. Whilst of course it is a shame that someone has to lose in this equation, this next few years look like being in the favour of the landlord. Get used to 4-5% yields; this is your new norm!

Market Cycle Timing

Sydney has such segmented markets (location, price and demographically) that it is difficult to ‘pick the bottom’ of the market, or a segment of it. But I do know that history has shown us that the best time to buy has always been when no one else is buying. Doesn’t it just make sense?

If you thought that I wasn’t putting my money where my mouth was, consider that only yesterday, I purchased for myself a bargain 3 level terrace in Paddington I’d been eyeing off for 2 months, some 20% under what I had expect to pay. I welcome your call in 5-6 months to tell me if I bought well or not.

If I can help with any of your property search enquiries, I look forward to your call on (02) 8705 3252 or see us at www.oasisproperty.com.au

Gavin McPherson is one of Sydney's first Buyers Agents, performing the role of a Buyers Agent/Advocate before they developed a license for the role. He acts as a professional property speaker and has successfully presented to thousands of banking staff (Westpac & St George), sporting professionals (including NRL league clubs) and other professionals property investors. His advice is keenly sought after from CEO's, Movie Stars and the busy professional abroad who rely on his honesty and integrity in selecting and negotiating their property whle abroad. He can be contacted for private appointment or at www.oasisproperty.com.au

Sydney Buyers Agents. Oasis Property are Sydney's premier Property Buyers Agents, with over $2b worth of property transacted under our roof, and over 2000 property transactions. Representing only the Buyers of Sydney Real Estate: www.oasisproperty.com.au

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