Sydney eastern suburb property ended the financial year on a high: Michael Finger

After months of uncertainty the 2012/2013 financial year ended on a high note.

Low interest rates, a shortage of stock and an abundance of buyers have seen property prices rising across Sydney.

Upgraders as well as investors are currently keen buyers at auctions driving clearance rates well above 70 per cent.

We have seen a definite increase in interest in the market below $2 million whilst the upper end has also shown some surges of improvement.

In the Eastern suburbs this was helped by investors from Asia, in particular China.

These buyers have shown interest in prestige property due to the more affordable Australian dollar and the new significant investor visa, which fast-tracks migrant visas for foreigners who invest more than $5 million in approved investments.

But let’s take a minute and look back at our last review.

At the beginning of 2012/2013 we were cautious about the year ahead, in particular the growth and turnover of property in our market.

This caution seems to have been well founded, when we look at the big picture that the year represented.

We were surprised to experience a remarkable and steady increase in foreign buyers that was surely influenced positively by the drop in the Australian dollar.

An Australian dollar below parity with the US dollar has now become a reality. This is definitely having a positive impact on sales, particularly at the top end of the market.

At this top end of the market Ray White Double Bay sold four properties to Asian families in May, with two of them purchasing without actually having seen the house.

These buyers relied on our 90-second property videos that can be viewed online and only sent either family members or local lawyers to inspect and act on their behalf.

The most expensive of those sales was 30 Victoria Road, Bellevue Hill, which sold under the hammer for $7,300,000.

But despite an absence at the site these buyers still executed full due-diligence with building inspections and valuations playing a very strong part in the process.

Overall the estimates for the new financial year are promising: property experts predict a rise of more than 20 per cent in revenue from residential sales for the next financial year totalling almost $5 billion. 
Buyers have more confidence in making a decision on their next home or investment due to

• the steady growth in rents
• less volatile movements in the market in comparison to the stock market

And there is no doubt that there is a lot of money sitting on the side line at the moment and people are just pondering which way to turn…

At Ray White Double Bay we believe that the coming 6 months and in particular the period leading up to the election will be a premier time to sell. A potential new government will bring new aspects and changes in taxes and costs and as we say in real estate: “Many will sell on rumour".

Michael Finger is the selling principle for Ray White Double Bay.