Sydney this spring: a bloom in buyer opportunities
Spring has sprung in Sydney, and with it comes a fresh crop of opportunities for buyers and renewed confidence in the city’s property market.
According to Daniel Trelease, Chief Executive Officer at Trelease Associates, a Sydney-based buyers’ agency, both the federal and state elections and the Royal Commission have resulted favourably for Australia, and in particular, Sydney’s real estate market.
“This spring is a highly opportunistic time for buyers looking to break into Sydney’s property market – there’s record low stock and approximately 50% of what can be bought at any given time is off or pre-market,” says Trelease.
The sense of positivity spring brings to Sydney’s property market extends to vendors, too, as Trelease points out.
“Confidence in Sydney’s market has lifted and stock levels are increasing. As a result, competition is on the up and good prices are being achieved. And even when passed in, most opportunities are selling, the good ones anyway,” he says.
With spring officially starting this weekend, Trelease advises buyers to start getting the ball rolling.
“Don’t rush, but don’t wait”
“Begin calling agents, looking at properties and getting your finances in order. Don’t rush, but don’t wait. If you buy well, and adopt long-term wealth creation strategies, you will likely do exceptionally well.
If you over pay in 2019, you’ll regret it for years, if you wait, you’ll just be paying more. No one has a crystal ball on our global economies, but it’s fair to say the next two years are key and won’t be easy,” says Trelease.
Pinpointing where the best opportunities are in Sydney’s property market, Trelease refers to the lower east area.
“South Coogee, Maroubra and even Botany are further gentrifying, and quickly now, with people being priced out of the Bondi-Coogee beach areas.
Trelease’s top tips
Be proactive and diligent. Don’t just go to open homes on Saturdays. Get your finance approved, then dedicate time to researching the market and finding a good agent. Once you’ve found the right one (on OR off market) do your due diligence, seek advice, and speak to many industry professionals.
Buyers agents are here, or should be, to protect the client and legally achieve the lowest price possible – but not everyone is suitable for a buyers’ agent. If you are, meet more than one. Qualify your buyers’ agent, ask questions, speak to their past clients. Not just the five they send you, ask for at least 20 names and numbers. Doing your research is key.
If this is your first investment, don’t rush, buy well and strategically. Don’t become too emotional – but it has to have some level of emotion, because we are all human, and (more than likely) it will be another human being buying this as a home or investment in the future.
Look for suburbs with good annual growth, decent infrastructure (or areas with future development planned), proximity to the CBD, amenities and public transport links, and school zones.
Buy something future proof – an asset that will appeal to multiple demographics when re-sold or leased.
Look for scarcity value – a garden, an Art Deco block with approval to add balconies, a top- floor apartment with exclusive access, or a rooftop area.
Consider if there’s scope to maximise equity and yield by adding value, i.e. rejigging a floor plan or renovating.
Where are the opportunities?
Bondi Junctionand surrounds. “Look at where Bondi Junction is. It’s right in the middle of some of the most affluent areas of Sydney and only 6km to the CBD. I’d say keep your eyes on Bondi Junction, it’s going to grow over the next five years,” says Trelease.
Woolloomooloo – is another one to watch according to Trelease, especially over the next ten years.
“It’s one of the most undervalued suburbs within a five mile radius to a major CBD.”
As well as only being 1.5 km from CBD, it’s close to affluent suburbs such as Potts Point, Elizabeth Bay, Surry Hills, and Darlinghurst.
“The median house price is $1.65m, with apartments averaging just over $1m. And of course you have the Woolloomooloo Wharf and the Wharf Residences opposite, which is a micro-market in itself,” he adds.
Both Kensington, which is located 6km south-east of the CBD, and Kingsford, which is 7km from the CBD, are due to benefit from the South-East light rail project, so are well worth keeping any eye on, Trelease advises.
Coogee, a gentrified coastal suburb 8km south-east of Sydney’s CBD, will see the benefits of infrastructure projects over 2019.
“In addition to the light rail a $5m upgrade of the Coogee Bay Road town centre commenced in September 2018,” says Trelease.
The South-East Light Rail project is a $2.2B project due to be completed in 2019 and will see a 12km light rail network connect Circular Quay to Kingsford.