“The Sydney market is slowing, not crashing”, according to RPData Core Logic’s Head of Research, Tim Lawless. Despite a seasonally strong result over the month of June, quarterly results show that values were only 0.8% higher in Sydney over the June quarter, which is down from 5% over the March quarter. Sydney’s annual rate of growth has eased from 15.9% three months ago to 13.7% over the twelve months ending June, 2017.
Locally, Avoca Beach experienced price growth of 5.9% and Copacabana 5.4% over the June Quarter. Avoca Beach’s annual growth rate has increased to 9.5% and Copacabana to 20.8% over the 12 months to June 2017. The strong growth locally has some time to run.
On the rental front, it has been good news for investors, whilst the pace of capital gains is moderating, rental growth has been rising with rents in Sydney increasing 4.5% over the past 12 months, with similar results locally. This growth turnaround will be very much appreciated by landlords looking to recover higher mortgage costs.
On the sales front, locally quality stock continues to be incredibly tight, which has shown to be insufficient to satisfy strong buyer demand. Despite the recent changes to APRA lending/credit policy, there is a very healthy supply of buyers and investors in the marketplace who are cashed up and ready to buy. With the stamp duty discounts for first home buyers from the 1st July, 2017 we expect to see renewed interest in properties at the lower end of the market, particularly apartments and units that are priced under $650,000.
2/94 Avoca Dr, Avoca Beach - Spacious 3 bedroom north facing apartment. 150m walk to beach, perfect for both holiday and permanent living. With open plan lounge & dining, sunny balcony, generous bedroom & modern kitchen. Sold for $1,190,000.
1/161 Avoca Dr, Avoca Beach - Beautifully maintained 2 bedroom beachfront apartment in “Pacific Court”. Offering built-ins in each bedroom, Secure gated off street parking, Revamped with quality finishes throughout, Stunning ocean, beach and headland views. Sold for $915,000.
7 Baronga Rd, Avoca Beach - Set in a quiet cul-de-sac, this spacious family home offers 5 bedrooms, 3 bathrooms. With a large dining room, lounge room, family room, entertaining deck & sparkling inground pool and cabana. Sold for $915,000.
73 Del Rio Dr, Copacabana - Well maintained brick and tile home on a level block of land with a large backyard. Great renovation potential. Sold for $770,000.
159 Del Mar Dr, Copacabana - 3 bedroom, 2 storey home is in a great location, 5 minute walk to the beach on a massive 1,056sqm block, private entertaining deck & separate cabana. Sold for $750,000.