Potential home buyers are looking the other way now. The dizzying sale of a tiny two-bedroom apartment is the final sign that the market is done.
A two-bedroom apartment in Manly has sold for nearly double the region’s average price, painting a dire picture for potential first-time buyers.
A buyer snapped up the property in Manly for $ 2.972 million over the weekend, nearly doubling the median price of a two-bedroom apartment to around $ 1.6 million.
The apartment in the Trident building on North Steyne in Manly is a two bedroom, one bathroom unit with a parking space and enjoys stunning beach views and a prime location.
“From a sub-penthouse vantage point on the coveted Manly beachfront strip, this awe-inspiring apartment is immersed in a breathtaking 270-degree panorama stretching from the ocean horizon to the harbor to town and sunsets over the northwest ridges ”, the list of readings. “Placed on the penultimate floor, elevator access, 147 m² in title. Seven minute walk to Manly Wharf, 20-30 minute walk to town.
House prices have risen to $ 1.2 million in a year for suburbs across Australia as the housing market continues to soar amid the Covid-19 pandemic.
Research from Realestate.com.au showed that more than 250 suburbs saw their house prices rise by around $ 200,000 between May 2020 and May of this year, while 24 suburbs saw their prices climb to 50. $ 000 and on each month – most of that in NSW.
New Finder research, released last week, found house prices in Sydney and Melbourne will see their prices rise by eight and nine percent, pushing the dreams of first-time homebuyers out of reach.
That’s a jump of $ 76,619 in Sydney to make the average price of a home a whopping $ 1,070,917 by July 2022.
“After the closures eased, the number of properties sold increased by about a quarter,” said Graham Cooke, head of consumer research at Finder. “In other words, while the closures haven’t done much to dampen the housing market, their end has started a fire that lasts forever.”
Mr Cooke said some homeowners may be buying beyond their means amid the frenzy of the housing market.
“In the past 12 months, house prices have exploded as record numbers of Australians fled into the housing market,” he said. “The low interest rates have encouraged many buyers to buy earlier than they otherwise would have done for fear of missing out.
“But not everyone will have expected their monthly repayments to increase if or before the cash rate increases,” he said. “Finder’s analysis reveals that average monthly mortgage payments in Sydney represent 76% of after-tax income for the average worker, the highest in the country.