11 Aug 34 Sydney Suburbs With Apartment Oversupply Warning
Sydney Real Estate Auction Results – August 5th, 2017
|Source:||Australian Property Monitors|
Sydney’s property auction continued to be fairly subdued with a 70% auction clearance rate and 503 properties listed for auction, 34 fewer properties listed than the previous week.
For me the big news of the week is Citi’s release of postcodes across Australia where they believe there is an oversupply and where they will be amending their lending practices. For all you Sydney property investors out there, this information on where Citi thinks Sydney’s apartment “black-spots” are is a must-read.
Citi has concerns about the surge in apartment approvals and is cracking down on their lending practices in certain Sydney suburbs. If your desired apartment is located in one of these suburbs or if you purchase a new unit less than two years old or purchase a unit directly from a developer, you will be required to pay up to a 35% deposit.
Even though you may not be using Citi for your financing it is interesting to note which postcodes they have concerns about in the Sydney apartment market.
As a buyer’s agent, I have steered my investor clients away from these suburbs due to my concerns about oversupply. Although there are a few surprise additions to the list – Longueville and Greenwich as neither suburb currently has a glut of apartments and Greenwich only has one apartment listed for sale and Longueville doesn’t have any. However they are very close to St Leonards where there is mass construction of apartments happening with more pending as developers have bought up surrounding residential houses to make way for new apartment buildings, so perhaps this is why they are included.
As always, don’t hesitate to get in contact if you need any assistance with your property purchase.