REA economist Nerida Conisbee: ‘There’s a lot of pent up demand in the east’
House hunters have become much more active since the Federal election and no more so than in Sydney’s eastern suburbs, according to realestate.com.au’s chief economist, Nerida Conisbee.
Expecting even more activity after yesterday’s interest rate cut, Ms Conisbee said of the site’s data: “The prices coming down has led to more people searching in the east than other parts of Sydney — there’s a lot of pent-up demand in the east,” she said.
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Figures from CoreLogic this week showed values have fallen 10.7 per cent in the eastern suburbs over the past year — a considerable drop, though in the Ryde region they’ve fallen 16 per cent.
But values are stabilising, falling just 0.5 per cent across the city in the past month.
The city’s auction clearance rates last week were 66 per cent compared with 47 per cent for the same week last year.
And the east was an even stronger 72 per cent.
CoreLogic auctions analyst Kevin Brogan said: “Confidence is returning to the market after the Federal Election result.”
This is being seen at a range of auctions across the east in the past week — a dozen bidders registered to bid for a 1960s red-brick three-bedroom, one-bathroom cottage at 39 St Thomas St, Bronte, that sold for $2.8 million — $800,000 above the reserve — at last Thursday night’s auction.
“People feel that the bottom has happened and there’s only upside now,” the agent, Andre Frack, from Richardson and Wrench’s Bondi Junction office, said.
The night before, a Darling Point unit attracted 14 registered bidders and sold for $1.505 million — more than $100,000 above reserve.
“The confidence is back,” Richardson & Wrench Double Bay’s Veronika Turnbull said, after the competitive bidding for the two-bedroom apartment at 34/66 Darling Point Rd.
Vendors Andrew Ferch, a teacher at Ascham School, and his wife, Noela, who performs anaesthesia in obstetrics and plastic surgery, are moving to another unit in nearby Sutherland Cres to “upsize” their view.
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“I think we’re really lucky that the election result has created a lot more confidence,” Mrs Ferch said.
Also last week, there were nine registered bidders for an original two-bedroom terrace in Sutherland St, Paddington — one of the suburb’s best streets — before it sold for $1.515 million through BadgerFox agents Peter Leipnik and Alexander George.
And Harriet France of Sotheby’s smashed a street record — set two years ago — when she sold a five-bedroom home at 5 Bell St, Watsons Bay, for more than $4.5 million, with four registered bidders.