$250k savings in Sydney market, prime trade-up time

“The time is now, particularly for those looking to trade up.

“There’s an incredibly rare window of opportunity to secure a really good quality property with extraordinary long-term potential because the competition just isn’t there at the moment.”

Across Sydney, Mr Viner said median dwelling values have dropped 7.35 per cent compared to this time last year.

In certain areas, the bargains are more evident, such as the Eastern Suburbs with declines of 13.9 per cent compared to this time last year from July 2018 and 8.7 per cent in the Northern Beaches Area.

Other smaller drops were noticed in the Inner West at 4.5 per cent and the City and Inner South both declining by 3.1 per cent.

“If you sell your home in today’s market for $2.2 million, the numbers show you’ve probably had to accept around 14 per cent less – or $300,000 – compared to the same time last year,” Mr Viner said.

“However, when you buy an upgrader in this same market, which will cost around $4 million, you’ll receive a similar 14 per cent discount which now equals around $560,000 on this more expensive property.

“Your net savings in dollar terms means you are already over $250,000 ahead compared to last year. Add in savings on stamp duty, because of the lower purchase price for the prestige home, and you come out even further in front.”

The drop in buyers

Demand from buyers have dropped off for many reasons according to Mr Viner, which include a stamp duty surcharge for overseas buyers, the tightening in lending, as well as loans switching over from interest-only to principal and interest.

“Sydney auction clearance rates are down, currently not much over 40 per cent. Buyers can be picky, so there’s a chance to purchase blue-chip properties that are usually very difficult to secure in a rising market,” Mr Viner said.

“Those who wait could miss out on their dream home.”

“As soon as the market turns, all they will be doing is chasing their tail every week. As prices rise, so will the competition.”

He added that knowing when the market hits rock bottom is impossible; only when it starts to rise again, and at that stage it may be too late.

The Christmas effect

The effects of Christmas time were being felt in the market earlier than usual this year, with the market losing momentum in November.

“Every year I have done some of the best deals in December because buyers switch off,” Mr Viner said.

Because people turn their energy to celebrating Christmas in the form of parties, school holidays, as well as generally spending time getting ready for the holiday period, the property market enters a lull with a lack of activity expected to last until February.

“That is why some of the best discounts can be found in December,” he said.

“If you find a motivated vendor, who’s perhaps already bought their next property, there are some fantastic pre-Christmas deals to be had, absolutely.”

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