Sydney real estate never goes down. Right?
“Sydney real estate never goes down.”
“You can’t lose.”
Pay me a dollar for every time I’ve heard that.
Let’s bust that myth now.
Last week, we helped two clients buy property at auction.
Here is the summary of both purchases:
| Apartment A | House A | |
|---|---|---|
| Vendor bought in 2018 | $895,000 | n/a |
| Vendor initial expectation | $1,500,000 | $1,490,000 |
| Comparable sale 2025 | $1,250,000 | n/a |
| Pre auction negotiation | $1,200,000 | $1,400,000 |
| Auction reserve | $1,150,000 | $1,350,000 |
| We bought post auction | $1,060,000 | $1,250,000 |
The initial expectations for both were not out of range.
The compound return for the apartment vendor was 2.1%.
The apartment sold at a 30% reduction to the vendor’s expectation, while the house sold at a 16% reduction.
Tip: Never buy before you sell.
Each vendor put themselves in a must sell position in the weakest market we have seen since the GFC.
We bought well.
Our clients will make money and diversify their portfolios with quality assets.
Our clients are happy, and we’re happy.