Whilst the Melbourne property market showcases the effects of a resurgence in Covid-19 cases the Sydney market has progressed steadily over the month of July, seeing little change to auction clearance rates and only a minor price decline of 0.9%. Whilst this is the third month of consecutive price index declines it should be noted that the annual return remains positive at 15.3% according to Corelogic. The driving factors leading to this insulation from a severe downturn remain record low interest rates, loan repayment holidays, government support and a tight supply of properties coming onto the market. Looking specifically at the Epping market our suburb has in fact experienced a steady, albeit minor, increase in the average pricing of housing over recent months according to Realestate.com.au. A further government initiative to provide greater assistance to first home buyers is also expected to bolster property prices at the lower end of the price spectrum.

As one of the biggest reforms of this year the government is stripping back stamp duty to boost activity of home buyers for the sub million-dollar market. By this, eligible homebuyers in NSW will be able to avoid stamp duty of properties up to $800,000 in value until August 2021, whilst offering stamp duty discounts for properties up to $1,000,000 in value. Although a temporary incentive, first home buyer grants and incentives have been shown to create a ‘vacuum effect’ whereby any incentive launch is followed closely by large spikes in buyer activity. This suggest the incentives simply bring forward purchases which would have happened anyway. For home owners of properties within this price bracket who had been considering upsizing this recent incentive may provide ideal conditions to take advantage of a spike in buyer activity, whilst also enjoying greater negotiation power for higher priced properties.

Taking on a local perspective the Epping market the numbers of properties coming to market have gradually increased from the month prior and strong results continue to be achieved. Although a number of results are yet to be disclosed the most notable sales to occur during the month of July is that of 59 Pennant Parade and 14 Dent Street with both attaining sale prices of $2,500,000 and $2,350,000 respectively.

Opening the month of July our office experienced this resurgence in buyer activity in the campaigns of 16 Neil Street and 24 Neil Street. Showcasing 920sqms of land on a quiet, yet convenient, street both campaigns saw large numbers of traffic through their respective open homes and received a combined 6 offers during their auction campaigns. The end result was that both properties sold prior to auction at $1,970,000 and $1985,000 respectively and left a number of highly motivated buyers looking for new properties in the area which offered development potential.

Having operated since 1984 as an independent firm our office is no stranger to challenges in the market and we have come to understand that no matter the marketed conditions people will always have the need to buy and sell. The reality on the ground is that property conditions are evenly matched between buyers and sellers right now. It’s all about fair value, moving for the right reasons and making a sensible decision. For properties which do tick all the boxes however, there is still most certainly potential to attain results beyond your expectations. What will always remain is the importance of an effective campaign strategy which is tailored to your property and needs.

Written by Peter Hunt