Lockdown and the current restrictions across metropolitan and greater Sydney have had little, if any, impact on buyer demand, with the market still delivering exceptional results.
An adapting market
Despite the restrictions, online technology such as AuctionNow and other software, has allowed the continuation of auctions. Clearance rates are still high, with our team recording a 91% clearance rate across the month of July. While some may have thought the lockdown would reduce bidder numbers, statistics from Avenue Auctions show that last month there was an average of 7.8 bidders per auction in the Shire, with properties on selling for 7% above set reserve prices. This represents an increase of 2.5 bidders per auction compared to figures recorded pre-lockdown.
Buyers have adapted to the new normal with one-on-one inspections taking place, and many still keen to secure a home and a new lifestyle that affords work from home capabilities. 3D property tours are also offering buyers a new and more comprehensive way to view properties when attending in-person is not possible. Providing an immersive feeling, videos and in particular 3D tours can be a great addition to your marketing campaign when selling your property. With buyers clearly more comfortable transacting in lockdown 2.0, properties are still selling quickly (within 23.25 days on average), due to low stock levels and a rise in those selling pre-auction and those going to market via private treaty.
Prices are still on the rise
Locally, lockdown has done little to slow the rising prices with the majority of suburbs in the Sutherland Shire recording price increases in July, based on properties sold. Jannali recorded a 6.7% increase in median house values comparative to June, while Loftus reported a 15.6% rise. Units also performed well with 11 out of 15 suburbs recording an increase in median unit prices compared to the previous month.
Similarly, our team had record breaking sales with 27 Tenth Avenue, Loftus selling for $1,725,000 and 3 Warrigal Street, Jannali selling for $1,920,000 at one of our last in-person auctions, with five bidders competing and pushing the price to set a new benchmark for a non-development property. G06/9 Moore Street, Sutherland also sold for $690,000, an all time high for a 1 bedroom unit in Sutherland.
Investors and the rental market
With low interest rates, strong rental prices and low vacancy rates, if you have been considering purchasing an investment property now is an ideal time. With low stock levels, rental properties are in demand leading to strong inspection numbers, good rental return and low days on market across all property types. Since the beginning of lockdown our rental team has leased close to 50 properties in an average of 17 days.
What to expect from the spring market
From what we can see, whilst there hasn’t been any impact on buyer demand, there is some hesitancy around those looking to sell, further contributing to low stock levels. With spring approaching and the possibility of the lockdown ending, the question remains will we see the usual increase in new listings as the warmer weather approaches? With more and more people looking for larger dwellings or a potential sea change, a rise in available properties is not out of the question, but only time will tell.
If you have been looking to sell, rest assured the market has adapted and with new approaches and technology, taking advantage of the favourable market conditions on offer now is more than possible and may be to your advantage long term.
Business is still operating as normal here at Sanders in a COVID safe way. If you have been looking to move, invest or buy, contact our team today. Ensuring you are prepared and informed will go a long way to reaching your property goals.
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