Sydney Property Owners Raking In Profit For Minimum Effort
Real estate experts in Sydney are claiming that the city’s property boom has passed, and are forecasting that prices in the city have a high likelihood of dropping by 10% for 2018, the high pricing in the market which has led to lots of removals in Sydney seems to be here to stay.
The Sydney property market’s high value was proven to some via the weekend sale of a three-bedroom, three-bathroom home in Paddington, in Sydney’s Eastern Suburbs. The property was owned by notable Aussie architect, Alexander Tzannes and his wife, Margaret Noonan, who acquired the property sometime before Christmas of 2017 for $3.66 million.
Reportedly, the couple was deliberating whether or not to stay at their current residence in Surry Hills, and opted not to go through the trouble of moving, calling for removals in Sydney, and decided to just test their luck in reselling the terrace, a mere few months after acquiring it.
Tzannes says that, even though the market showed a few signs of cooling down, he believed that the house would fetch a good price, as it was a product of good design, which he considers as being able to hold up well, regardless of market conditions.
The property went under the hammer on the 21st of April, where two bidders fought over it, with the winning bid amounting to $3.96 million, an extra $300,000 from the price that Tzannes bought it, without any additional renovations, upgrades or alterations. With stamp duty for the home costing about $196,000 this means that the couple managed to make a $100,000 profit on the property.
Currently, the median house price in Sydney clocks in at about $1,058,306, whilst the median for apartments is at $774,124.
The property market in Australia’s capital cities, have stayed flat over the recent months, and are now dropping by more than 1% on average in 2018, thanks to the Sydney market slowing down, according to data from CoreLogic.
Compared to 2017’s numbers, the home values of Sydney has dropped by 3%, with Perth dropping by 2.5%. Meanwhile, in other places in the country, prices are going the other way. Melbourne’s up by 4.3%, Brisbane by 1.1%, Adelaide by 1.2%.