Real Estate

Major events to shape market in 2019

Written by The ReReport

Major events are set to shape the real estate market in 2019, with the next 12 months expected to be a landmark year for property in Sydney.

With the real estate market experiencing a turbulent year through 2018, the federal and state elections as well as the conclusion of the royal commission into banking would prove pivotal points for the market, leading experts predicted.

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Property prices in Sydney have slid throughout 2018, with the median price falling by 1.4 per cent over November. It now sits at $821,438, which is 8.1 per cent lower than a year ago. chief economist Nerida Conisbee said there would be a clearer view of where the market was heading once the outcome of 2019’s major events was settled.

“A lot of people are making calls with pricing but it will be very dependent on what happens throughout the year,” she said.

“It is very hard to predict, with the election increasingly looking like a Labor Party win, we will get political stability but there could be changes to negative gearing and capital gains.

“The royal commission could be more positive than anticipated as the likely restrictions aren’t as bad as the ones that are already self-imposed.”

Prices were expected to keep declining, Ms Conisbee added, predicting a total fall of around 15 per cent over the course of the downturn, without the impact of other factors.

This in turn would create good conditions for first home buyers in lower cost areas, as well as those in the top end due to strong economic prospects and employment.

People planning to upsize will also benefit, while regional NSW regions like Orange and Newcastle should expect a solid year ahead, Ms Conisbee added.

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“Economic growth is continuing to look solid which should buffer price falls to some extent,” she said.

When it comes to opportunities to get into the market, founder of Rich Harvey said 2019 would be “a golden opportunity for buyers”.

Those who failed to take advantage risked missing out, he said.

“I think now is a fantastic time to buy just because there is hardly anyone turning up to open homes,” he said. “It is clear that the window is very short lived and it’s very rare for these to last too long.”

The Sutherland Shire, northern beaches and along the future Metro Northwest train line would all be attractive areas to buy in come 2019, Mr Harvey said.

“Upgraders and downsizers in the shire will find great buying, while there is really good value around Frenchs Forest as there are new workers attracted to the hospital and the proposed tunnel will cut down travel time,” he said. “For buyers wanting to get into high-end (areas) like the eastern suburbs or inner west, 2019 is the time to get in.”

Auctioneer Damien Cooley of Cooley Auctions said he expected 2019 conditions to remain similar to those seen over the closing months of 2018. He also agreed that the results of the state and federal elections would determine the future course of the market.

“Buyers are looking for a deal and I don’t blame them, (but) anyone looking to sell will be in the market early,” he said.

The auction market is expected to be at its most active in late February and early March, with two super Saturdays predicted for February 23 and March 2, Mr Cooley added.

Case study

Greg and Melissa Fitzpatrick say they are looking forward to jumping back into the market once they sell their five-bedroom Cobbitty home.

The pair bought the property at 49 Eliza St in 2011 in the Kirkham Rise estate and built a luxury family home there in 2013. They are hoping the unique design and exclusive location will make it a winner with buyers, but realise they need to be realistic with pricing due to current conditions.

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“There is nothing on the market like it with the high-end finishes and boutique estate,” Mr Fitzpatrick said. “We have been holding off looking for a new project and although it’s a lot quieter than in the boom time, I think the market will catch up and we will see growth again.”

Listing agent Glen Craigie of McGrath-Liverpool said homes that appealed to a wide range of buyers, like 49 Eliza St, were the types of properties that he expected to still sell well in the current market because they were rare.


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