Interesting that they are claiming a 5.9% discount in vendor pricing to "meet the market" in Sydney.
Consider these stats:
Newtown Sydney. Inner-city suburb that typically is more resilient to price change due to its proximity to the city.
Earlier this year I gave an example (107 Darley St) of a renovated home that was originally listed at 838k. The price was dropped shortly after to 818k. There were no buyers at this price and the house was removed from the market (a common practice it seems nowadays). About two months later the property went to auction (which I attended) with the auctioneer trying to attract bidders at 750k. Once again there were no bidders and the property was passed in.
So already we have gone from 838k to 750K - but maybe there was something amiss with the house?
It seems not... as the house next door to No.107 (105 Darley St) which is a nicer renovation has just come on the market and is priced at 695K!
838k to 695K in six months (yes in just six months) is closer to a 17% discount by my calculations.
When you juxtapose this fall in vendor expectation with the supposed price rise of 17% since 2007, mentioned by our data supplier, then if you are still holding a property in this area you will shortly be under water on a 4 year investment. That's assuming you can sell it. 105 Darley St will be watched with keen interest.
All above data can be cross referenced from previous posts and 105 Darley Street is on Domain.
