2020 The Year That Was

It was very difficult to predict the Real Estate trends for 2020 and when COVID-19 hit Australia, earlier this year, most businesses were bracing themselves for a major downturn, laying off staff and some businesses have evaporated from the landscape. 

In March this year we were unsure about the Real Estate market and how it would cope with Covid-19. Fast forward to December 2020. At NGFarah we can say that we have had one of our best 6 months of selling in the past 25 years. In the past 3 months alone, the company has sold just under $200 Million worth of property, breaking records in suburbs like Maroubra, Randwick, Coogee, Clovelly, Kingsford, Mascot, Pagewood and Little Bay. 

The strong buyer demand represents a very buoyant Real Estate market and the fact that interest rates have continued to fall during 2020, makes it more attractive for investors and home buyers to put their money into property than leave it in a bank. The cash rate currently sits at 0.1%. It is virtually 0% and the banks are lending to home buyers under 2%, for the first time in history.

This is compounding the Real Estate market, forcing prices up for mainly residential houses and semis in the East and South East Sydney region. There is also a shortage of homes on the market. This gives buyers less choice and puts more pressure on existing homes, on the market, which results in achieving in excess of their deserved prices. 

Last Saturday, a good example of this, was a property at 20 Pine Street, Randwick which traded in 2014 for $1,500,000. This property was recently sold under auction conditions by leading agent, Adrian Bo for $3,561,000. The sale price was well over the current vendor’s written reserve and, on the day, we had 7 registered bidders. This is one example of the confidence in the Real Estate market.

There is no disputing that the best value properties currently on the market are units. Due to COVID-19, the rental market has experienced a downturn and units are being affected. Investors are selling their units and buyers are getting the best value on unit sales in Sydney and surrounding suburbs.  

2020 is just about over, with only 2 Saturdays remaining before Christmas. Most auctions have been done and most vendors are getting their properties ready for a February 2021 Auction. 

We are expecting the market to continue to be strong in 2021 and we already have a host of quality properties listed for February and March 2021.

Anyone thinking of selling now would be well advised to wait until February, but please start to engage with an agent today and get ready to sell in the New Year.