Our Market - October 2023

As we navigate the bustling spring market, it's astonishing to realise that Christmas is less than two months away. The local real estate scene has maintained its vigour and resilience throughout the spring season, and we anticipate this robust activity to persist until year-end. Buyer engagement remains strong, particularly for high-quality properties, though interest wanes for properties of lesser grade. A consistent trend is the growing number of investors divesting properties due to elevated holding costs. Meanwhile, the majority of property acquisitions are by owner-occupiers, which presents a challenge for the rental market as the inventory of investment properties appears to be dwindling.

Here are the statistics depicting how the market performed in October 2023, with the corresponding figures from the previous year in brackets:
Properties Sold at Auction: 56 (47)
Pre-Auction Sales: 42 (32)
Properties Passed in at Auction: 20 (25)
Properties Withdrawn from Auction: 14 (15)
Auction Clearance Rate: 74% (66%)
Properties Sold by Private Treaty: 50 (43)

Demand for high-quality properties remains consistently high across all sectors and areas within our local market. To illustrate, consider these three recent sales:

19/8-12 Hunter Street, Lewisham: This two-bedroom unrenovated apartment, highly sought after by young first-time homebuyers, was auctioned last week. It drew in 4 registered bidders who engaged in a competitive bidding war, ultimately securing the property for a remarkable $935,000—well above the owners' expectations.

171 Jones Street, Ultimo: A two-bedroom terrace, in excellent condition and ideally situated on the fringes of the city, garnered significant attention. With 8 registered bidders, the auction was fiercely contested, resulting in a sale price of $1,900,000, surpassing both our and the owner's anticipations.

73 Prospect Street, Erskineville: This beautifully renovated 3-bedroom terrace, situated in the coveted Erskineville area, sparked the interest of young families and those looking to upsize. Multiple enthusiastic buyers, unable to wait for the auction, rushed to secure the property before it went under the hammer, leading to an exceptional pre-auction sale at $2,200,000.

These transactions highlight the strong interest coming from diverse buyer groups, encompassing first-time buyers, up-sizers, and young families. We continue to receive robust enquiries from these segments, with many expressing a desire to conclude their property transactions before the holiday season. With approximately 6-7 full weeks remaining before Christmas, the opportunity to capitalise on the favourable market conditions still exists. If you're considering selling your property, please don't hesitate to reach out. Likewise, if you're on the hunt for the perfect property to buy, please let us know, as we anticipate additional properties entering the market and some exclusive off-market opportunities.

If you would like to discuss your next move in the current market, please don’t hesitate to reach out as we would be only too happy to help.