The 10 year Cycle

The Ten Year Cycle

Back in 2003, the real estate market peaked after a boom which had spanned over 10 years and saw property values climb to exceedingly high levels.

In late 2003 the bubble burst and for the past 10 years the real estate market across Sydney and Australia has experienced some tougher conditions due to a number of factors which include a new state property tax Introduced by the Carr government in 2004, consistently high interest rates and the Global Financial Crisis of 2008 with detrimental effects worldwide. A combination of these influences resulted in a lack of affordability in Sydney’s real estate market which ensued in decreasing property values.

10 years on, the cycle appears to be providing fortuitous conditions for those invested in real estate as interest rates are at near the lowest level in 50 years. Property is now relatively affordable, and whilst the higher priced ‘premier properties’ ($2m+) are harder to sell, they’re therefore more affordable than their cheaper counterparts which are drawing much competition and pushing residential sale prices above owner expectations.

The South-eastern region of Sydney is poised to have continued growth over the next 5 years and that was clearly the sign at our inaugural auction event of 2013 at Coogee’s Crowne Plaza where N G Farah proved why we are market leaders in this area by selling 14/18 properties in an impeccable auction display by the family owned business. This auction clearance rate of 78% continues on from the consistent auction results we achieved in the second half of 2012 and has remained above Sydney’s average

Market conditions may still not be perfect; however we are selling more properties at commendable prices with homes in Rosebery such as 106 Rothschild Avenue and 68/83-93 Dalmeny Avenue selling under the hammer for $1,127,000 and $705,000 respectively. A home at 14 Broadbent Street in Kingsford was another solid result selling for $1,190,000 whilst 252 Fitzgerald Avenue in Maroubra exceeded expectations at $1,403,000.

As the rental market continues to draw high levels of demand and interest rates remain low with an expectation that the banks will pass on these cuts to increase volume, we believe that investors are now returning to the marketplace.

The growth suburbs in the Eastern Suburbs include Maroubra, Kingsford, Pagewood, Botany, Rosebery, Eastlakes, Mascot, Zetland, Matraville, Malabar, Chifley and Little Bay; and they will continue to experience high demand as we achieve record numbers at open homes. The auction process is certainly the most effective and preferred method of selling a residential home in Sydney’s Southeast. Whether it be onsite on a Saturday or at Coogee’s Crowne Plaza on Tuesday the 25^th of March, quality properties are receiving increasing interest as we remain optimistic about a real estate resurgence.