Sales & Rental Market Reports – JANUARY – MARCH 2017

Our first quarter JANUARY – MARCH 2017 Sales & Rental Market Reports are now completed and found by choosing the relevant suburb, then clicking the links below.

If you would like a free customised report specifically for your property, please contact us and we would be happy to provide this for you at no obligation.

Sale Marketplace SYNOPSIS and FORECAST

In December 2016, most property experts said the market was ‘too hot’ and coupled with the number of new apartments coming to the market, a market price check for residential properties in Sydney was imminent.

Well three months on and demand for residential properties in the Hornsby Shire has continued – strong and without abatement. Auction clearance rates remain well over 80% on historical high volumes each week. With buyer demand for residential properties in the Hornsby Shire remaining so high, the average days on market continues at fourteen days or less. And yes, sale prices are continuing at record levels. In traditional terms, there is no doubt, it is a “Seller’s market.” However the supply of houses for sale on the market has fallen far behind demand.

So surely this imbalance cannot be sustained, can it? Its all about supply and demand. We have a net increase in population into Sydney, so demand continues to rise. The data showing the volume of houses and apartments on the market as a percentage of total residential properties in Sydney puts the proportion of properties for sale at its lowest percentage level since data has been collected (over 50 years). A decade ago, homeowners in Australia’s capital cities would move every 6.7 years – today that is 10.7 years. For apartments, it was every 5.9 years, which has now stretched out to 9 years. So, there it is, perhaps because of the cost of stamp duty, uncertainty, our children living at home for longer, or the cost of renting – and maybe a combination of the above. We just aren’t selling as frequently as the historical data shows. (Source: Ms Cass O’Connor) Sounds like a great opportunity!

For investors, rent yields in Sydney & Melbourne remain low when compared to other smaller capital cities, however investors are continuing to be attracted by the market’s sustained capital growth. As mentioned, rent demand remains high.

No doubt Buyers are more positive with the Reserve Bank’s continuing low interest regime and their confidence in the Australian economy has also improved with commodity prices on the rise and the Australian dollar falling slightly. Here’s to securing your future through sound investment decisions.

Rental Marketplace SYNOPSIS and FORECAST

Tenant expectations are higher than ever.  Premium rentals are being achieved for all clean, well presented property – units, apartments, granny flats, townhouses and houses in the Hornsby shire in particular.    Furthermore, with strong employment levels, tenants are paying their rent on time at the start of each rental period.  Arrears are at a very low point. Generally Tenants treat their ‘rental home’ as if it were their own and take care of its presentation.  The John Pye Real Estate rent roll features in brief:

  • Low arrears – rents paid on time
  • Low vacancies – due to market demand
  • Low level of disputes over property condition at the end of each tenancy. Tribunal hearings are rare.

The first quarter in 2017 saw the demand for units and apartments improve substantially due to a slowing down of the release of new apartments in the Hornsby/ Waitara area. Rents have thus increased around 5% to 7% over the low point of last quarter of 2016.

Generally, all well-presented properties are being leased within a couple of weeks of being on the market.  Demand has met supply.  Older properties in poorer condition are taking longer to lease.

The rent cycle does not follow the sale cycle.  As sale prices increase beyond the reach of many in the market, buyers are forced to become tenants.  Should sale prices decrease substantially due to rises in interest rates and unemployment, current owners will be forced to become tenants.  It seems as if investors can’t lose providing they are able to hold their rental properties in both good economic times and bad.

 

Click below for the suburb reports:

 

Asquith

Asquith Units, Apartments & Townhouses

Berowra

Berowra Heights

Hornsby

Hornsby High Rise Apartments

Hornsby Low Rise Units

Hornsby Area Townhouses

Hornsby Heights

Mount Colah

Normanhurst

Pennant Hills

Thornleigh

Waitara Apartments

Westleigh

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