If ever there was a time to buy or sell a home unit in the northern district, it is now.
That is the message real estate agents are taking to clients in an environment where supply has overtaken demand — especially in the home unit market.
Latest figures from property analyst CoreLogic show 186 units for sale in Epping, 155 home units for sale in Ryde and 95 units in Meadowbank.
Nerida Conisbee, chief economist at REA Group, said it wasn’t the first time Sydney had experienced a “boom and bust cycle” and it won’t be the last.
“Of course things will improve. Every time there has been a downturn, the market has recovered,” Ms Conisbee said.
She said the massive increase in the number of home unit developments in the last five years came after more than a decade of stagnation.
“There’s not as much housing supply in Melbourne compared to Sydney because Melbourne kept building after the GFC (in 2008) while Sydney shut down. Then the development happened quickly in Sydney along with the market boom,” Ms Conisbee said.
She said developers who built home unit complexes solely to attract investors were the most likely to lose out in the current market.
“A lot of investors are sitting on their hands, waiting to see what happens if there is a change of government (next year) and the impact on capital gains tax and negative gearing,” she said.
Ms Conisbee said the market could also be affected where buyers of off-the-plan home units still under construction struggled to meet the settlement requirements.
“A lot of buyers agreed to pay a certain price and the valuation may be less than what they agreed to pay when they come to settlement,” she said.
David Cale from Cale Property Agents in Epping said the market took a hit when banks stung by the Royal Commission imposed tighter lending restrictions on local and overseas buyers.
“It is a balancing act with the banks, you want the banks to be morally strong but you don’t want to make it too difficult for people to borrow,” Mr Cale said.
He said the days of crazy prices were over.
“That market was ridiculous and unsustainable but now is a good time to buy if you’re wanting to get into the market. It’s much better than it was two years ago.”
He is optimistic the market will improve, albeit slowly.
“It may take time but I’ve got no doubt the market will turn,” Mr Cale said. “Everyone is doom and gloom but the market conditions are like a big boat — you can’t just spin it around.”
Mr Cale has a $950,000 price guide on a three-bedroom two-bathroom home unit in the Epping Grove complex, built in 2016, at 8/10-14 Hazlewood Place, Epping.
“It will take a bit longer to sell but most are taking a bit longer,”he said.
Phill Allison from Belle Property Hunters Hill said sellers and buyers were in a strong position in a market where supply outstripped demand.
He said the level playing field nature of the slower market allowed many home unit owners to sell and upgrade to a house while buyers could get better value for money in a home unit.
Mr Allison is selling a two-bedroom one-bathroom home unit at C4005/1 Hamilton Crescent, Ryde, built in 2017, with a guide of $750,000.
Mr Allison said a realistic approach from sellers and buyers would lead to positive outcomes.
“There is a lot on the market but if a property is priced correctly, there will still be competition for it,” Mr Allison said.