This is sweet music to my ears and confirms what I am seeing in Roseville lindfield killara on Sydney's north shore for houses in the 1.3 to 2 million bracket.
This year has not started well for clearance rates for houses over 1.3 in these areas with a few I have followed failing to sell. Vendor price expectations seem to be out by about 10% compared to what price is reached at auction.
12% since 2010, add 6 to 9% in loss in real terms over 2 -3 years at 3% per year, and it's a real circa 20% loss. Add 5% 'loss' for stamp 'duty' and that's 25%. 2 mil property bought in 2010, real terms your behind by 500k. To rent the 2 mil house would be about$1200 to $1300 per week so three years would total about 200k of rent. If you had your 2 mil in the bank and renting you would be 300k better of or 100k per year or $2000 a week.
