With the holidays a fading memory and the first property auctions set for February, the housing market in Sydney’s Eastern Suburbs is again surprising us with its resilience, despite what some sectors of the media are reporting.
The first quarter of the year will give a strong indication of what we can expect in 2018, however early indications show a stable rate of growth is still very achievable.
High end property continued to perform well in the latter stages of 2017 and we expect this to continue this year. 9 Black Street, Vaucluse and 38B The Crescent, Vaucluse sold for phenomenal prices in Q4 2017 and 22 Albert Street, Edgecliff achieved the highest residential auction of 2017 for around the $33 million. Buyer activity remained strong right up to Christmas and enquiry has continued to flow into the New Year.
The major change from 2017 to this year is the introduction of new taxes aimed at non-residents. Daniel Pym, Director of Loan Market Double Bay says foreign buyers into NSW are slugged with an extra 8 per cent stamp duty surcharge and a 0.75 per cent land tax surcharge that rises to 2 per cent from the 2018 land tax year.
That’s expected to be good news for locals, who have shown a voracious appetite for Sydney’s best homes, said Ray White Double Bay director Craig Pontey, who sold the Vaucluse property Phoenix Acres to a local family in December for shy of $67 million.
“I think we are heading into a very steady 2018 market – with two things to look out for: 1) make sure there is plenty of employment in Australia and 2) access to capital, says Mr Pontey. “If people could borrow money, and borrow it easily, we will see more money go into property.”
He also adds, “The offshore investors we deal with are very organised and seem to have access to funds through our bank institutions. I think that they will continue to play a big part in the top end of the market in 2018.”
The professional team at Ray White Double Bay are looking forward to working with you in 2018.