Increasing numbers of Sydney property investors selling up, starting to think market may be at top; Some investors are beginning to question if this current market growth is sustainable
Tweet Topic Started: 22 Nov 2013, 11:35 AM (4,156 Views)
Tim McIntyre Real estate November 21, 2013 11:15AM
PROPERTY investors in Sydney's west are beginning to sell up their properties, in a bid to "cash in their chips" in a strong sellers' market.
In recent months, there has been a 150 per cent increase in the number of properties being sold by investors, in northwest Sydney areas such as Kellyville, Bella Vista, Auburn, Merrylands, St Clair, St Marys and Guildford, according to local agents.
"Some investors are beginning to question if this current market growth is sustainable," said Douglas Driscoll, EO, Starr Partners Real Estate Group. "They're keen to sell now while consumer sentiment is strong and the market is still in its ascendancy. Some even fear that prices may slump as we head into 2014".
Much of Sydney has had double-digit growth in 2013 after the city recovered from its post GFC slump and began the expansion phase of the next property growth cycle.
A large proportion of medium-to-long-term investors gained significant equity during this period.
"More investors are starting to think the market might be at its top," Mr Driscoll said. "It's almost impossible to pick the top of the market, but (rental) vacancy rates are starting to creep up and there's more competition in the marketplace … so a lot of investors are now bucking the trend (and selling)."
It's interesting that the number of investors selling has increased by 150% and the number buying has also increased significantly. Given that investors generally go for the same types of properties such as apartments, they are probably just selling to each other. Time will tell which of the investors were the smart ones.
FHBs have largely left/been priced out of the market.
On that much, you and Black Panther can agree. But you are both at odds with Peter Fraser and Pete Wargent, who would argue that nothing has changed for FHB. It would be interesting to know where the truth lies.
On that much, you and Black Panther can agree. But you are both at odds with Peter Fraser and Pete Wargent, who would argue that nothing has changed for FHB. It would be interesting to know where the truth lies.
Um, prices are up by more or less 10% so you can safely say FHBs have taken it in the arse, again.
miw
22 Nov 2013, 03:59 PM
One good way to pick a lightweight article is when they talk about only one end of the transaction.
OK so investors are selling up, but who are they selling to? Is it other investors or is it to FHBs?
Last week it was all about investors buying. Who were they buying from? Other investors or upgraders?
You need to know both ends of the dominant transaction for it to be meaningful.
It doesn't matter who they're selling to. The story says that there's lots of investors getting out while the going is so good, because the whole market is based on stupidity and it will crash.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
FHBs have largely left/been priced out of the market.
On that much, you and Black Panther can agree. But you are both at odds with Peter Fraser and Pete Wargent, who would argue that nothing has changed for FHB. It would be interesting to know where the truth lies.
No I'm not saying that nothing has changed, I'm saying that FHB numbers are much higher than the numbers suggest.
Any expressed market opinion is my own and is not to be taken as financial advice
On that much, you and Black Panther can agree. But you are both at odds with Peter Fraser and Pete Wargent, who would argue that nothing has changed for FHB. It would be interesting to know where the truth lies.
It would be devastating for the real-estate and financing sectors for the public to find out where the truth lies. Best just dispute the validity of all the available data and hope the next lot of greater fools get lost in the whitewash.
peter fraser
22 Nov 2013, 04:07 PM
No I'm not saying that nothing has changed, I'm saying that FHB numbers are much higher than the numbers suggest.
And pete has several anecdotes to back up that theory.
It doesn't matter who they're selling to. The story says that there's lots of investors getting out while the going is so good, because the whole market is based on stupidity and it will crash.
Au contraire it does matter a lot who they are selling to.
If they are just selling to other investors, then there is an equal number of investors who think it is time to be getting in and the nett investor sentiment is flat. Prices will likely continue to rise until sentiment drops.
On the other hand, if a fair whack of the investors are cashing out and selling to FHBs, then investor sentiment will be acting as a brake on price rises. Every time the prices get pushed up a little bit more by FHBs, more investors will look at the gains they already have and the softening rental market and call it a day. It's the other side of the coin from the floor that investors seem to put on the market for low-end housing. It's a bit like a buffered solution.
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