With interest rates rising in Australia for the first time in a very long time, one would assume the property market would cool down a bit… But that doesn’t seem to be the case, at least for some suburbs and properties. officers.
Gavin Rubinstein, Sydney’s top estate agent, founder of the Rubinstein Group at Ray White and star of Amazon Prime Video’s Luxury Listings Sydneytook to social media earlier today to explain how, despite rising interest rates and a change in federal government, he had a bruising May.
In just 31 days, Rubinstein sold 10 properties in Sydney’s exclusive eastern suburbs, collectively worth $83.4 million. That’s a lot of dinero, baby.
It looks like that momentum isn’t slowing down either: just yesterday, June 2, Rubinstein sold another property in Vaucluse for more than $4 million.
The big wins come at the same time as Sydney’s wider property market faces the first real price drop in years. House prices in Sydney have fallen 1% through May – the biggest monthly drop since January 2019 – and a price drop of 10% or more is on the way, FRG reports.
Property prices in Australia are pretty exxy, but Sydney in particular has a long way to go. Why are we predicting such an extreme price drop? As The Sydney Morning Herald explains, cash rate changes have historically taken several months to have an effect, but the lag narrowed significantly in May as very high prices and debt-to-income ratios made the market more sensitive to changes in rates of interest.
Yet, as Rubinstein’s business successes demonstrate, Sydney’s most exclusive suburbs seem to be weathering the storm.
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It’s not just the eastern suburbs that are likely to remain warm.
“It can be said that some regional markets will be somewhat insulated from a significant decline in home values due to a persistent imbalance between supply and demand, as we continue to see advertised inventory levels remain extraordinarily low. across regional Australia,” said CoreLogic research director Tim Lawless. ABC News.
Other areas bucking the trend and seeing price growth include the Mornington Peninsula in Melbourne, the Logan-Beaudesert area in Brisbane, the northwestern suburbs of Perth and Hobart as a whole.