1. Which areas do you service?
Our property market analysis essentially covers the triangle that extends from Potts Point to Watson’s Bay to Coogee. This encompasses the postcodes 2011,2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2031, and 2034. We are very strong in Darling Point, Double Bay, and Bellevue Hill.
2. How are you currently finding the market in your area?
Auction clearances seem to have peaked late August. As both available property supply
and vendor confidence/expectation has grown, we have seen a slight fall in this rate. We are still doing well with properties sub $1 million, but have had an excellent run in our core area of competency (i.e. luxury apartments between $2 million and $8 million). Development sites are grabbing attention. We have also enjoyed a number of sales this year in the ‘double-digit’ million-dollar range.
3. How did your team perform over this weekend?
We closed 4 deals – one each in Darling Point and Bellevue Hill, and two in Double Bay. These averaged just shy of $3 million each. We also finalised terms on two more and received a number of very solid offers on others.
4. Do you think your specific market is a representation of the national market or do
you think your market is performing differently to the national average?
Every locale is different and amidst each are numerous varying segments. Our sub $1 million market is different to other areas in the same price range. The key difference is the institutional assessment of risk. The eastern suburbs is considered ‘blue chip’ whereas concerns are being raised in the inner-west; greater west and emerging areas such Alexandria and Waterloo. One factor that I think uniformly influenced the market at large was the change of government last September. Economic fundamentals didn’t change but the election saw a definite shift in market sentiment. This also affected banking and mergers & acquisition/IPO volume. Static became dynamic.
5. What do you anticipate for 2015?
Buyer sentiment tends to rise and fall quite swiftly whereas Vendor sentiment tends to shift at a slower pace – a bit like a speedboat vs. an ocean liner. This is great for agents when the buyer sentiment is on the up – we all look like heroes. When the speedboat turns toward the negative, it takes a while for the ocean liner to catch up. Is the current slight down turn in clearances simply seasonal (i.e. increased supply) and will we see the 6-week X’mas stock lull result in renewed deal vigour in February? This remains to be seen. While funding affordability remains attractive and lending criteria continues to loosen – we should see a continuum of market vigour. I do see a slow down in price rises and the trajectory for growth will become more conservative. I also see diminishing yields – especially in the commercial property sector. Residential yields should be relatively stable which is terrific in the context of falling yields across other investment classes.
6. What is the one suggestion you would give to prospective investors who are
looking at investing in 2015?
Be patient and stick to quality. The fundamentals are key – aspect, proximity to infrastructure, outdoor space, and parking are each factors I would want to include in any investment purchase. While ‘bargains’ are hard to come by, in the long run it is always difficult to have overpaid if you secured quality.
About Brad Caldwell-Eyles
Brad Caldwell-Eyles is principal of 1st City-Hasemer+Caldwell.Eyles. He has been awarded a host of accolades as a top selling auction agent, published many industry articles and presented at various conferences and1st City-Hasemer+Caldwell.Eyles is lead by principals Julian Hasemer & Brad Caldwell-Eyles. The team is based in Double Bay and specialises in mid to high-end luxury home sales and leasing. Boutique in scale – yet top-end in terms of approach and market share.