With interest rates on the rise in Australia for the first time in a very long time, you’d assume the property market would cool down a little… But that doesn’t seem to be the case, at least for some suburbs and real estate agents.
Gavin Rubinstein, top Sydney real estate agent, founder of The Rubinstein Group at Ray White and star of Amazon Prime Video’s Luxe Listings Sydney, took to social media earlier today to reflect on how despite interest rate rises and a change in the federal government, he’s had a killer May.
In just 31 days Rubinstein sold 10 properties in Sydney’s exclusive Eastern Suburbs worth a collective $83.4 million. That’s a lot of dinero, baby.
It looks like that momentum isn’t slowing down, either: just yesterday on June 2nd, Rubinstein sold yet another property in Vaucluse for over $4 million.
These big wins come at the same time that the broader Sydney property market is facing the first real price downturn in years. Sydney house prices have dropped by 1% through May – the largest monthly decline since January 2019 – and a 10% or greater price decline is on its way, AFR reports.
Property prices across Australia are pretty exxy but Sydney in particular has a long way to fall. Why is such an extreme price slide being predicted? As The Sydney Morning Herald explains, changes to the cash rate have historically taken multiple months to have an effect, but the lag has narrowed significantly in May as very high prices and debt-to-income ratios have made the market more sensitive to interest rate changes.
Yet, as Rubinstein’s sales successes demonstrate, Sydney’s most exclusive suburbs are seeming to weather the storm.
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It’s not just the Eastern Suburbs that are likely to remain hot though.
“Arguably, some regional markets will be somewhat insulated from a material downturn in housing values due to an ongoing imbalance between supply and demand as we continue to see advertised stock levels remain extraordinarily low across regional Australia,” CoreLogic research director Tim Lawless tells ABC News.
Other areas bucking the trend and experiencing price growth include Melbourne’s Mornington Peninsula, Brisbane’s Logan-Beaudesert region, Perth’s north-west suburbs and Hobart as a whole.