Greetings from Scoutable and welcome to our August Wrap Up.
We are a day away from the first official day of Spring. We are certainly looking forward to longer, warmer days.
August is usually a quiet month for real estate in Australia, with most buyers rugged up at home. Scoutable loves to buy property during this time as there is less competition (we just throw on a jacket and scarf). Domain recently asked five economists to provide their forecasts for price growth in Sydney over the next 12 months. Please find article below. The answers were mixed: -
House Price Outlook
Two experts predict price growth to be flat
Two forecast prices to increase
One predicts prices to fall
Highest outlook: up “5 per cent to 10 per cent”
Lowest outlook: Falls of 2 per cent
Apartment Price Outlook
Three expect prices to fall
Two expect prices to increase
Highest outlook: Growth of 5 per cent
Lowest outlook: Fall of 7 per cent
Factors which are influencing the market include further tightening regulations from APRA, foreign investment restrictions / cooling demand from foreign investors, possible interest rate increase for investor loans, and potential over supply of apartments.
On the ground, we are noticing properties that would have had five or six buyers on them a few months ago, now just have one or two. That said, properties are still achieving vendor’s price expectations, some are just taking a few extra weeks to sell. We continue to report the patchy market comments from last month, as there are still in-demand properties which are selling above expectations. The market is certainly not crashing, more stabilising after four years of strong growth. We are watching the market with great interest over the coming months.
Lastly, for all the dads out there, Happy Father’s Day for Sunday!!
Till next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
SYDNEY PROPERTY PRICE PREDICTIONS
LENDER RATE CUTS AHEAD OF SPRING
PROPERTY OF THE MONTH
1/119 ALMA ROAD, ST KILDA EAST
We recently purchased this gorgeous art deco apartment for one of our expat investor clients. One of only four in the block, it contains one bedroom, one bathroom and parking for one car.
The charm is in it's period details such as the lead light windows, fireplace and french doors which provide access to a sunny north facing courtyard. Positioned across the road from Alma Park, it's also within walking distance of Windsor Station, trams, Chapel and Carlisle Streets.
Securing it for under $550,000, with an expected rental return of approximately $400 per week, it will provide an attractive gross annual yield of just under 4% making it a great investment.