There Are Markets Within the Property Market

Graeme Salt

We are in a property boom we hear in the media. Yet most of the research produces shows that growth is primarily in Sydney and Melbourne with other cities flat or nicely warm. This is a downside of having global media – it offers us the same news no matter where we are.


 


But, even then, not all of Melbourne is running hot and not all of Adelaide is flat. Docklands in Melbourne in seen as having a massive oversupply of properties with vendors and landlords both offering heavy discounts. Meanwhile other parts of the same city are in boom.


 


Similarly research by Domain Group shows that while overall Sydney house prices there increased 10.4 per cent in the 12 months to June, prices in individual Blue Mountains towns such as Leura and Blaxland were nearly double that figure.


 


Yet even then, the Blue Mountains represent better value than Sydney itself. This weekend I have a first-time buying couple looking to bid on a property in Blackheath. They are prepared to bid up to $475k for a property that would be far more expensive in the Sydney suburb where they currently live.


 


Given that there are markets within markets, does that mean that we should ignore what the media tell us about the property market?


 


Of course not. But there are other sources of information, to which good brokers have access, which can boost homebuyers’ understanding of the property market.


 


Good brokers have access to databases such as RP Data and APM which can help home buyers understand the market trends in any suburb across Australia. Once a potential home buyer has identified a suburb where they want to buy, they can even ask their broker if they can run-off a desk-top valuation on a specific property.


 


Armed with such street-by-street data, these home buyers have a much bigger advantage than simply relying on what’s in the seven o’clock news.


 


Graeme Salt is a Sydney-based mortgage broker.  For a no-obligations consultation, please contact him on 02 9922 5055