I’ve read and watched with interest lately all the chatter going around the property market around the so-called bubble burst. We all know that given the boom the market has experienced in recent years that it has been, and will remain, a hot media topic. While I don’t want to simply add to the reams of copy on this subject, I’m often asked for my opinion on where the market is headed: in a nutshell, given the data I’ve seen and the market analysis my team has done with our clients, I think the debate raging about the bubble bursting is really a bit of a myth. This holds especially true for Sydney, but let me explain.
First off, lets look at the data. We’ve seen a period of huge growth over the past 2-3 years, in fact the Sydney median home value (all property types combined) has increased a whopping 48%* since May/June 2012. This is above average growth in anyone’s language. Add in factors such as rental yields in Sydney declining against other major capital cities and an oversupply of properties in the 2nd half of 2015 leading to lower auction clearance rates: it all points to the market cooling. However in reality this should to be seen as the market broadly returning to a normal level of growth, rather than a market in decline. First takeout: Based on the activity I’m seeing and historical market trends, property values will grow in 2016, just not as fast as before.
Secondly, at the prestige end where I operate, the market will continue to be buoyed by two main factors. One, international buyer interest remains strong, a fact our agency has managed well over the past two years. We see this interest continuing into 2016 and beyond, bar any major government regulation changes. We invest heavily in engaging the right kind of buyers in the market and will significantly increase these activities in 2016. Two, as the market slows we’ll see an increase in activity from local buyers looking to re-enter the market where they feel they can achieve a better price point. In fact, their re-entry into the market will help fuel demand, ensuring we have access to a bigger pool of potential buyers. Second takeout: demand from local and international buyers will fuel growth in 2016.
Thirdly, the anecdotal feedback that my team and I see in the market doesn’t suggest a significant change. We’re still seeing healthy buyer demand for the right property, and certainly our team remains confident that market activity will continue in 2016. Yes the market is in a correction however that’s also an ideal time to create a marketing campaign around your property that increases exposure to as many local and international buyers as possible. Technical innovations in media production and advancements in digital marketing have enabled us to create tailored marketing programs that have significantly increased client engagement and conversions and we will continue to lead the market in the space. Third takeout: with the demand still there, focus on the best marketing strategy for your property so you can take advantage.
Barring any unforeseen economic challenges, we think 2016 will be another year of strong results. So, in my view: it’s certainly not time to panic!
So, as we head into the Christmas holiday period, what should vendors who are thinking about selling early in the New Year start to think about? As you’re lazing by the poolside this holiday season here’s my simple tips to making sure you’re to explode out of the blocks when selling your property in 2016:
- Knock any general maintenance or upkeep issues on the head early – this is a vital step in being market ready. You want your property to look its best so start thinking about fixing those issues you most likely doesn’t notice anymore. Do a walkthrough of the property and put yourself in the buyer’s headspace. Make a list of things that would detract from a strong presentation.
- Remember that first impression counts – start to think about how to best layout your property, particularly internally. Buyers want the perception of space; so ensure that you enhance this aspect of your property. Some agencies call this “de-cluttering”, while not being a term I like to use, it is a process you should consider. Of course, if you choose to work with us our agents will help you with this, but it doesn’t hurt to have a head start!
- Where to next? – if you’re selling the property you call home, be clear on where you want to move to next. Do your research upfront so you can narrow the funnel of potential suburbs. Start looking now at properties in those areas, you’ll save yourself a ton of time in the long run. Once again Team Curran can provide advice on sales activity and other metrics in particular suburbs which may help narrow the search.
But most of all: enjoy the holiday period! See you all in 2016.
*Source: CoreLogic RP data