In the 3rd week since COVID restrictions were lifted, there is some positivity to be taken from the Sydney property market.

At BresicWhitney we’ve now seen 3 weeks of 100% auction clearance, with 8 auctions scheduled, 7 selling under the hammer, and 1 selling prior. It was also the 3rd week of increasing buyer numbers, with an average of 10 people per property.

With a total of 21 properties sold, it was the most eventful 7 days since the virus hit.

As we monitor whether an increase in incoming stock flow will upset the balance, Sydney property is teetering in an ok place right now, with the city returning a 77.9 per cent preliminary clearance rate. In the past 7 days, 30 new sellers have signed up with BresicWhitney, the highest weekly number since pre-COVID.

In the rental market, stock levels remain high and people have accepted this is the ‘new market’ for Sydney. But we’re seeing less panic and fewer leases being broken. More on that below.

An interesting story from the week was 398 Annandale Street, Annandale with Chris Nunn. Guiding $3.7 million, no buyer wanted to be the first to act, even below the price guide. With the property online for several weeks the price was dropped to $3.5 million. The original buyer acted at the same time as others, and it went back up to sell for $3.8 million, $100,000 above the original guide.

Adrian Oddi had a similar scene at 965-69 Nelson Street, Rozelle where the guide was $1.2 million, and offers were around $1 million. With a guide dropped to $1.1 million, it activated the local market, engaging 3 buyers, and selling for $1.18 million.

Luke Grosvenor had a terrace at 3 Hordern Street, Newtown that was struggling to get interest at $1.1 million. After advising new carpet, new paint, and styling (around $16,000 spent), it had 80 inspections in two weeks, selling for $1.4 million.

Of the successful auctions, 9 Eltham Street, Dulwich Hill achieved an impressive price where Will Pereira had 2 registered bidders battle to $1.93 million. Nearby 16/140 New Canterbury Road, Petersham also sold with 10 registered, and 3 bidding – a solid buyer pool given recent conditions.

Nick Playfair successfully closed a 1-bidder auction at 28a Harold Street, Newtown, for a result of $1.71 million.

In a big week for off-market transactions (28% of total sales), Brandon Nguyen sold 97 Short Street, Birchgrove.

The most popular properties of the week all had more than 20 groups attend including a house at 78 Bridge Road, Glebe, an apartment at 5/43-45 Cobar Street Dulwich Hill, this beauty at 9/28 Onslow Avenue Elizabeth Bay, and 6 Excelsior Parade, Marrickville.

Meanwhile, we’re not the only ones watching stock levels and supply/demand. CoreLogic commentator Kevin Brogan said: “We’ve seen clearance rates come back to where they were prior to the restrictions. There’s no doubt there are fewer participants in the market who are ready to purchase a property, but the fact is the supply has also diminished.”

In property management

Stock levels for leasing are still high but the market is entering its third phase of COVID. Short-term leases and re-directed sales campaigns are having less affect on the market, and we’re seeing fewer people forced to break leases after failed negotiations.

Our biggest week for people vacating their homes was a couple of weeks ago, when 42 people gave notice. This week that number was 29, including 13 breaking a lease. Renters are now looking for better value in a ‘new market’ in which pricing has been reset. 

The people who are moving now are driven by wanting more space, upsizing from share houses, or transitioning from apartments into houses that representing more value.

One leasing agent in Potts Point had a majority of studios and one-bedroom apartments, holding 11 opens with only 4 expected to lease straight away.

Over in Paddington, attendance was busier but about half of the homes that showed will lease immediately.

Our vacancy rates are now sitting at just under 7%, but we’re on track to lease more than 100 properties again.

On the front lines the BW approach is to be proactive, advising owners of when leases are ending, and letting landlords know when their homes are well-priced or overpriced. The best approach is to encourage existing landlord/tenant relationships right now.

Priced and gone

33 Ridge Street, Surry Hills – $880pw
With a price drop of 30% since it was last on the market, this house was marketed for $850pw to get 15 groups through. It saw 5 applications above the asking price.

102 Cooper Street, Surry Hills – $860
Asking $850pw, this home started at $900pw and had to be discounted. With 10 groups throughout someone applied at $860pw.

Online and discounted

27 Denham Street Surry Hills – now $875pw
Now with 2 weeks free rent, this home was marketed at $950pw on the weekend with no interested parties.

209/301 Botany Road, Zetland – now $750pw
Starting at $850pw, this home was dropped to $795pw, and now to $750pw in a campaign that has seen price-sensitive attendees.