Sydney property market news | How hot is the market right now?
Super Saturday* – 27 March, 2021 – was set to be the litmus test of the strength of Sydney’s hot property market. According to Domain.com.au, more than 1180 properties were scheduled for auction on the back of a run of record auction clearance rates for early 2021.
Well, what a result! The clearance rate came in at 88% across Sydney, with some local areas demonstrating even stronger results.
A couple of tangible demonstrations of the hot market have been heavily reported in the media recently:
One: the tale of two adjoining semis in Varna Street, Waverley.
The first to sell, number 28 Varna Street, sold prior to auction for $2.671m on 10 February and the second, number 26 Varna Street, last weekend at auction for a whopping $3.322m, $822,000 over the reserve price.
- Both sold by the same agent
- Both on the same size block of 278 square metres.
- Both have the same layout (although configured a little differently with 28 claiming an extra bedroom which 26 uses as a dining room)
- Both in a similar condition (although the kitchen at number 26 is definitely more appealing!).
- 26 currently has no off street parking whereas it’s neighbour has a long driveway with parking for multiple cars.
So a massive $651,000 price difference – or an increase of 24.4% in just 7 weeks!
Two: the resale of a home at 14 Cross Street Pymble
This two bedroom home was purchased for $1.88m at a time of great uncertainty on 20 March, 2020 just as the Covid lockdowns were taking place.
The same home has recently resold – on 21 March, 2021 – under the hammer again, and this time for $2.76m – a tidy gain of $880k or 46.8%. All achieved with a lick of paint, the addition of a shower in the laundry plus the reversal in market conditions.
Crazy prices and market gains? Or will we just look back on this in a few years, like we usually do, and think of these prices as cheap? Time will tell…
*(defined as when 1000+ homes are scheduled for auction)
