The closing weekend for the September market saw Sydney continue its strong recovery with auction clearance rates remaining at approximately 75%, and higher again in Epping closing out the month at 81%. The greatest driver behind this recovering has certainly been the actions taken by the RBA in reducing the interest rate to the record low of 1%, having now made the decision to cut the rate even further to the current rate of 0.75%. With more properties coming to the market as we progress further into Spring, the notion of FOMO (fear of missing out) is now easing and we are also able to gain a clearer understanding of current market conditions given the greater number of results. The question of whether we are now working with a ‘buyer’s market’ or a ‘seller’s market’ becomes interesting as the results show that neither are currently evident and in fact one could argue that we are currently sitting within a grey area between the two.
When compared to the previous peak in the market between 2015 – 2017 whereby results showed that nearly all properties were attaining above expected results, and the more recent declines following whereby buyer perceptions continued to drive price expectations lower, the current market can be defined as a mix of the two. By this, properties which are enticing to buyers in both price and offerings (e.g. land size, development potential, location, finishes, etc.) are generating heated demand and, in most cases, are achieving results well above their respective reserves. Examples of this within Epping include, 137 Midson Road ($1,925,000), 18 Downing Street (1,850,000) and 73a Epping Avenue ($2,530,000).
Conversely, properties whereby the price guide is not aligned to buyer perceptions of value are facing an uphill task in generating interest and are finding it a far more difficult task in achieving a property transaction. The lesson here is the importance of pricing in generating the much-needed buyer interest and competition for a successful sale.
Join forces with lot owners to sell a strata scheme – Contributed by Omega Legal
1. A collective sale process for the entire strata scheme provided by the Strata Schemes Development Act 2015 (NSW), or
2. Sell individually to the same buyer.
For a collective sale, the majority of the owners (more than 50% of the owners) must agree for the collective sale process to apply to your scheme. Any owner may initiate a motion for an upcoming general meeting, where owners can vote to opt into the relevant legal process. At the meeting, the owners may also appoint a real estate agent and a law firm to represent them. Alternatively, you and fellow owners may just decide to sell your respective lots individually under the usual conveyancing process.
While both processes have their pros and cons, it is worth consulting a real estate agent who can facilitate the sale process and even introduce you and other owners to an interested buyer or developer while the property is off the market.
If you are planning to sell your property this year, obtaining legal advice early will help ensure a smooth conveyancing process. Contact Omega Legal at info@omegalegal.com.au or call 0402 990 108 to find out more.