23 Kuppa Rd, Ryde, is one of the best prospects in the Ryde region
HOME values in some parts of Sydney have dropped to June 2015 levels and agents across the city are having to deal with buyers now wanting further discounts of up to 20 per cent.
The CoreLogic report for October, released today, shows the values of dwellings in the Ryde region have dropped 14.4 per cent in a year.
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Data shows the last time Ryde’s median dwelling value was at a similar level to its current $1,237,000 was more than three three years ago.
Matthew Johnson of LJ Hooker St Ives agreed buyers in the Ryde region were enjoying the best conditions in years. Two neighbouring 800sqm properties in Kuppa Rd with a $1.4 million price guide are among the best prospects. They’ve been in the same family for half a century.
23 Kuppa Rd, Ryde is one of the best prospects in the Ryde region
The CoreLogic report indicates values in the Hills district have dropped 10.8 per cent while values in the Parramatta region are down 10.3 per cent.
Values are now at August 2016 levels in both areas.
The three regions have suffered the biggest value drops of all capital city markets in the country but right across the city agents are struggling.
There were drops of 9 per cent in Sutherland and drops of more than 8 per cent in the inner south west; inner south; Blacktown and the inner west. Even on the north shore, which CoreLogic calls North Sydney & Hornsby, there were 7.7 per cent drops over the year.
The CoreLogic figures show an annual drop of 7.4 per cent city-wide, with dwellings down 2 per cent for the quarter and 0.7 down for the month.
Inner city agent Brigitte Blackman said with a lot of property now for sale at the height of spring and much of it not selling, vendors had little choice but meet the market.
“They have to put the exact right price on it, which has to to feel like a bargain to a buyer, or they’re just not jumping,” she said.
13 Hopewell St, Paddington, had hopes of $1,875,000 last November. It’s just sold for $1,720,000
No-one credible is saying there’s going to be further falls of 20 per cent, but that hasn’t stopped some ambitious buyers.
“They’re thinking now it’s their turn so they’re trying for 15 to 20 per cent less,” Ms Blackman said.
She recently sold a house at 13 Hopewell St, Paddington, for $1,720,000. CoreLogic figures show it been listed for sale last November at $1,875,000.
“When we listed it again this September for $1,795,000, the first offer we got was $1.6 million,” she said.
“But we persisted.”
In the inner west, McGrath agent Adrian Tsavalas said some buyers are “throwing us a number” about the potential of further price drops.
11/384 Illawarra Rd, Marrickville, would have had an $850,000 price guide a year ago
“They’re saying I don’t feel as though I need to buy that now at that price because it mighn’t be worth that in the future,” he said.
While buyers are obviously recognising they’re in a good negotiating position, if there are multiple parties competing for a property it was still possible to “buck the trend”.
He has first home buyers are keen on a two-bedroom, two-bathroom unit at 11/384 Illawarra Rd, Marrickville, with a $775,000 price guide.
He said it would have likely had an $850,000 price guide a year ago.
McGrath CEO John McGrath said recently his agents were reporting individual cases of price drops of between 10 and 15 per cent in many Sydney suburbs.