18 Wheatley Road, Yarrawarrah entry shot – Market Round Up July – September 2020

The Hill & Viteri Property Quarterly Market Round Up is our review of the Sutherland property market. It is surrounds in the July – September quarter of 2020. So, it is brought to you by  Sebastian Viteri.

So, the six month period for the first round of government stimulus has come to an end.  It appears as though the government buoyancy measures have done their job. So, Now eased the impact of COVID-19 on the economy.

At the coalface, it certainly feels like things are back to normal during this quarter.  However, many commentators are suggesting that the worst of it is remaing. So, the measures have merely delayed the inevitable.  

Whilst there are provisions for continued support for some, many will be left to fend for themselves.  Government stimulus packages including job keeper, job seeker, trading when insolvent, SME loans, commercial rent reviews and mortgage holidays are all up for re-assessment.

In recent report by APRA that half a million Australians elected to take loan deferrals.  These homeowners and business owners will need to renegotiate terms with their lender moving forward.

The pressure on businesses has Treasury anticipating unemployment will rise to over 10%.  Roy Morgan has the present unemployment rate at 12% with this stat remaining unclear due to the government propping up so many businesses and jobs at present.  This will likely rise to 20% on Roy Morgan’s formula.

So, whilst activity is strong and buyer confidence has returned in some segments.  The reduction of government buoyancies will likely adversely affect the market in the coming 6-12 months. As some property owners forced to sell.

18 Wheatley Road, Yarrawarrah bathroom shot – Market Round Up July – September 2020

Adding to the uncertainty, the mix reports in the media on the state of the market at present.  If I were to generalise it, I would suggest we are in a normal market considering the overall stats.

However, what we are seeing is the market is varying from segment to segment. 

First home buyers are returning in strong numbers but are finding finance approvals difficult.  There is presently some great value buying in the apartment market.  

There have been a number of two bedroom apartments selling under $650,000 giving first homer buyers the full stamp exemption –  1/52-56 Auburn Street, Sutherland a great example of this.

Upsizers and downsizers are moving freely with the change in price relative. This part of the market enjoying more normal conditions and greater choice.

130 Lantana Road, Engadine Facade Shot – Market Round Up July – September 2020

A recent auction at 130 Lantana Road, Engadine saw 10 registered bidders compete and push the property $82,000 over the reserve Buyers here were predominantly upgrading from strata to a house. 

Investors are very quiet and I feel will return once economic uncertainty passes.  

14/49-53 Vermont Street, Sutherland Living Room Shot – Market Round Up July – September 2020

We are starting to see some great returns.  An example of this is a property that we sold at 14/49-53 Vermont Street, Sutherland.  We sold this property for $479,000 and previously had the apartment leased at $450 per week.  This is a gross return of 4.9% and we have not seen this type of return for about a decade.

Take the time to view our Principal’s Market Round Up video below and the Quarterly Property Reports for 2233, 2232, 2226 & 2225.

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