Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Sunday, 19 February 2017

Sydney Saturday

East is east

Television crews out in force. 

Coffee vans with their stalls set out as the buzzing crowds line the streets. 

What, pray, is being auctioned off here?

A fine Picasso, perhaps?

A rare and select manuscript of the Dead Sea Scrolls?

Er, well, no it's just a Sydney terrace, and not even a particularly good one. 

In fact, it was a deceased estate with no parking on title, a veritable "renovator's delight" in euphemistic real estate parlance. 

I lost track of the bidding after 15 minutes or so (my double-shot long black had gone cold by then), but I gathered enough to know it was well beyond the executors' reserve price and well into the $2m range. 

My long held thesis for the Sydney market is that the traffic in the city will over time become so gridlocked that eventually sought after properties close to the CBD in the eastern suburbs and lower north shore will become treated much like rare Picassos.

I didn't see much to change that opinion on Saturday. 

Thoroughfares such as Oxford Street and Bondi Road are more like car parks than through-routes these days as the Sydney population passes 5 million. 

To be fair, the construction of the Sydney CBD & SE light rail is causing some of the traffic disruption right now. 

Last weekend the final auction clearance rate for the eastern suburbs was 96.7 per cent, while the lower north shore wasn't all that far behind. 

The preliminary auction clearance rate for Sydney this weekend as reported by Domain was a punchy 83 per cent.

The median auction price was similar to the corresponding weekend last year at $1,227,500. 

Bigger listing numbers and auction volumes are expected next weekend. 

Hammer, Court, Judge, Justice, Law