The Inner West property market has taken a hit in recent months. In her first piece for Inner West Mums local property expert Rosalie Gordon of Planet Properties explains more about this adjustment and reveals the suburbs in which buyers should be looking right now. Rosalie has worked in the real estate industry for more than 30 years, and co-founded Planet Properties in 1992. She brings a deep knowledge and love of Sydney’s Inner West to her role.
If you’re keeping an eye on the Inner West property market, you may have noticed it’s taken a bit of a hit in the last few months.
Sydney’s Inner West seems to have borne the brunt of the steepest annual drop in prices since the GFC. But don’t panic: this was inevitable. In recent years the Inner West property market has had huge growth, greater than most other precincts in Sydney, so there had to be an adjustment sooner or later.
Here are some considerations if you’re thinking of buying or selling in the area.
Petersham was the worst hit, with an adjustment of more than 15 per cent since the boom. For buyers who are hoping to snap up a property in Petersham, now’s the time to take advantage of that adjustment.
Petersham Park at sunset. Image © Ginny Grant
Earlwood, Balmain, Annandale and Russell Lea followed suit, each recording a drop in house prices of between 7 and 8 per cent. This offers further opportunities for buyers to secure a property in one of these desirable suburbs.
The median house price for each of these suburbs all sit well above the Sydney’s $1,144,217, demonstrating the phenomenal capital growth gains made over the years and the need for a price adjustment. It just shows the level of demand in these suburbs and the gains achieved prior to the adjustment.
Apartments across the Inner West are still performing well even in this tight market. This just showcases the change in demographics and the desire for locals to stay in the area and compromise on housing rather than move to another precinct outside of the Inner West. It’s also fuelled by the infrastructure we have in the Inner West; trains, buses and light rail services allow residents to get to and from work easily without depending on crowded roads and costly tollways.
The banks have definitely tightened their lending criteria and this has resulted in buyers not being able to pay the top prices they once did. You need a hefty deposit these days before the banks will even consider you for a loan. Banks are nervous approving loans in these fragile times.
Buyers have also become wary. Previously buyers were afraid to miss out but now they are afraid to pay too much, which is a very different mindset.
Do keep in mind that with a great lifestyle on offer and proximity to the city, the Inner West is unlikely to underperform in the market over a long period.
At Planet Properties we are still seeing good properties in good locations performing well and we don’t believe this hiccup in the market will last long. Our advice to serious buyers is take advantage of the adjustment and buy now!
Cover image © dolgachov/123RF Stock Photo
Statistics: Domain Property News