Singapore and Hong Kong buyers expected to support prestigious Sydney market
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Buyers from Hong Kong and Singapore will help propel Sydney’s residential and commercial markets through 2022, according to Ric Serrao of Raine & Horne.
The announcement:
Buyers from two of Asia’s leading global cities will help propel Sydney’s residential and commercial markets through 2022, according to Ric Serrao, director of Raine & Horne Double / Bondi Beach and Raine & Horne Commercial Bondi Junction.
âSingaporean investors have an appetite for commercial office buildings and residential blocks in the Sydney CBD and the eastern suburbs,â Mr. Serrao said.
âSingapore buyers are looking for the strong returns and capital growth available from owning commercial and residential properties.
âMeanwhile, Hong Kong residents want to move to a place on the map like Sydney because they believe it gives them sanctuary and stability.
âThere are also cashed expats looking to return, but none of these overseas buyers have indicated that the latest COVID-19 lockdowns have hurt Sydney’s safe-haven status, and buyer demand is still strong.
“The prevailing view among overseas buyers is that once Australia raises its vaccination rates, all systems will start over for Sydney and its real estate market will enter 2022.”
Talking about a correction is wrong
Mr Serrao also rejects calls from some experts that the Sydney market should undergo a correction in the near term.
âI think house prices will stabilize a bit after the lockdown is released as a lot of people start to get back to normal and spend less time checking house prices and start taking vacations again.
“However, I do not expect prices to correct as we have seen following previous booms over the past 30 years, as we have yet to see the current cycle fully expand. . “
Mr. Serrao continued, âWe continue to have many significant sales which demonstrate the strength of the market. “
Some of the major sales that exemplify the strength of Sydney’s prestige market include 25 Lamrock Avenue, Bondi Beach which sold for $ 5.6 million in October 2020.
The exact property was recently traded for just over $ 9 million. Likewise, a four-bedroom patio at 9 Midelton Avenue, North Bondi, sold for $ 3,980,000 in October of last year.
“Everyone said it was a crazy price last year, and it just traded for $ 5.3 million,” Serrao confirmed. “The market just seems to be increasing every week.”
Off-market sales are also healthy, according to Serrao.
âWe sold a property at 65a O’Brien Street in Bondi Beach, without the knowledge of a client for $ 5.6 million. This property was traded 12 months ago for $ 3.8 million.
“I have never seen a market where people have made so much money and so quickly.”
The traditional sales market will start in the summer
Mr Serrao said the biggest impact the latest lockdowns will have on real estate in Sydney is to push the traditional sale market from spring to summer.
âWe will see an increase in listings as the market and the weather warms up, but since there is so much demand from buyers locally and abroad, again, I only see values ââincreasing,â a he declared.
âWhat’s more, even the most unprecedented event in over 70 years couldn’t stop the market. The lowest interest rates in history will also help keep the market going in 2022.
âThe only possible hand brake on the market would be for the banking regulator to intervene as it did a few years ago and tighten lending. But it would be a courageous government that would allow this to happen again. “
Source: Raine & Horne Group
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