The property market in Sydney has been reeling from the effects of COVID-19 for weeks now, with new patterns emerging from the upset.

On the front lines at BresicWhitney, buyers and sellers have now moved through the panic stage. Market uncertainty has weeded out uncommitted sellers, while also engaging a buyer pool that wasn’t so visible in previous months. Those buyers had intentions to buy late last year, or early this year, but continued to be priced out of the market.

Many of them now see their opportunity to buy, knowing the sellers currently on the market are serious about trading.

Over the weekend, Adrienne Williams fielded 90 enquiries on one Drummoyne property, with 7 private groups through, and 3 contracts issued.

A quality 4-bed house, with a $2.5 million price match, buyers are watching this market closely, and going where they see value.

Andrew Liddell sold a property nearby for $5 million. That vendor was in a $6.5 million mindset 18 months ago. Whether or not that would have been achievable, it was no longer the aspiration.

A handful of homes saw between 10 and 25 people inspect on the weekend. They included:

16 Denning Street, Petersham
32 Morgan Street, Petersham
88 Woolwich Road, Hunters Hill
104 Surrey Street, Darlinghurst

Successful sales have been slower but steady at BresicWhitney each week since COVID-19 started affecting us. This week we sold 15 homes. Last week it was 19, the week before, 23.

With an average sale price of $1.3 million, the continued flow is driven by a number of factors:

New stock is reducing

Prospective sellers are now aware of the conditions, with many entering the market with lower expectations, discounted pricing, and a flexible mindset. Depending on your idea of value a month ago, the pricing on most homes is between 5% and 20% down on where it was. And that changes across different price points, styles, and locations.

The current pool of vendors are not distressed sellers, with the main drivers for selling continuing to be lifestyle decisions. People are trading out/up to buy higher-priced or superior assets, reducing their risk and exposure, lowering their debt, offloading for tax, or cutting ties for relationship reasons.

Properties are being withdrawn from sale

Many sellers have accepted the conditions and changed course, making the decision to withdraw and rethink their long-term plans. These people aren’t expecting prices to bounce back quickly, and have taken the view that property values are a longer term consideration.

Buyers are familiar with new conditions

Buyers who have stayed in the market are more decisive, and behaving as if they have a better understanding of the risks. Their numbers aren’t increasing by the week, but they’ve become more serious and are buying with a view for the long term.

Plenty of other have either stepped out of the market, or are have become onlookers, unsure of what to do. Those who remain are being enticed by properties when they feel that some discounting has been priced in. 

Their upcoming challenge will be those low-stock levels. This is always a frustration for active and committed buyers, with many predicting a trend towards low stock to continue for some time.

Informed buyers driving the sales

Another successful sale between landlord and tenant went down last week at 5/69 Hereford Street, Forest Lodge. Chris Nunn had both parties agreeing on a price that set a new record for the building, $2.9 million.

Darren Pearce sold 12 Marshall Street, Surry Hills off-market for $1.3 million. We’d just taken photos to launch a campaign when the buyers snapped it up.

Emily Davidson had 9 groups inspect in a week at 10/18-20 Hardie St Darlinghurst. It sold for $735,000.

Everything is happening behind the scenes. But the COVID-19 market exists.