[NSW] Apartment Price Markups (Epping)

I've been starting to hunt for some apartments near Epping NSW and been looking at some newly built places (buying from developer). But there seems to be giant mark ups looking at recently sold apartments for similar configurations in the area.

We were quoted 1.48 million for a 3 bd apartment, but the agent soon said even a 1.25 bid he can help negotiate. The high rises especially seem to be asking well above the 1.4 million mark. However, it seems that the highest selling price in Eppingseems to be around the 1.2 million mark, with most of them being around the 1 million mark. We aren't necessarily looking for a brand new apartment. Just that most for sale in the area are new.

We aren't necessarily looking for a brand new apartment. Just that most for sale in the area are new.

Considering that the prices are only going to slide down in the current market, what would a reasonable strategy to bid be? Take 20% off? Take 200k off? Would an apartment that was in a low rise complex be an indication of a high rise apartment price?

Would welcome any general comments as well.

Comments

  • +1 vote

    I've been starting to hunt for some apartments near Epping

    Wondering if Epping, VIC or Epping, NSW.

    We were quoted 1.48 mil for a 3 bd apartment

    And that answered my questions XD

    Sorry that doesn't help answer your question.

    All I can say if it there seems like a large amount for sale, start low on some and then if you miss out, then work your way up.

  • +6 votes

    Arm yourself with sales evidence.
    https://www.realestate.com.au/sold

    Put together a spreadsheet of sales, or ask somebody (university student, friend in property) to use the Core Logic RP Data search to generate a list of sale prices for units in Epping.
    You can then get a feel of where market value is for the apartments you are interested in.

    Once you have this data, you can get a better understanding what a competitive bid would be for the apartment.

    •  

      I just used aggregate data for December 2017, and the average price of units in Epping-Pennant Hills (SA3 Region 12601) is just under $900k. This is using another academia data set.

      Of course, being a 3 bedroom apartment, it would be more expensive given the more spacious apartment. But if it is worth the price mentioned is totally up to you.

  • +1 vote

    Have you considered buying a slightly older apartment? You'll pay a premium for a new one. The developers are going to be trying to maximise sales and might hold out for a better price whereas real estate agents, while still trying to maximise the sale price, are probably also looking to move the properties promptly as they'll still get their commission.

    • +4 votes

      In addition to this, newer apartments are generally built "more efficiently" (read cheaper and smaller) than old apartments, as investors are driven by development profit.

      Older apartments are a great recommendation. Have a look at this one. Brick building, renovated, sizeable bedrooms for $888,000.

      Might even be considered above market value. (Don't trust anything with recurring 8's).

      • +1 vote

        Amazing find, thanks! Out of curiosity though, why do you think the 8's are dodgy? Aren't the selling prices shown accurate? I can see Chinese buyers paying that number (for sake of luck).

        • +3 votes

          All I'm saying is that a Chinese buyer may be more inclined to spend $888,000 instead of $850,000.
          $33,000 for three times the luck? Bargain.
          However this is a massive generalisation and based only on my experiences in the industry.

          I anticipate that this particular transaction is only $888,000 for the above reason, and maybe have transacted for a lower amount with a different buyer.

        •  

          @QW3RTY:
          There is a similar property in the same block sold last year for just over 1 million https://m.realestate.com.au/sold/property-unit-nsw-epping-12... so the seller most likely had been asking for over $900k

      •  

        The "8"s are a pitch at the Chinese market. Lots of Chinese in that area. To them, 8 is "good joss".

    •  

      Yep, most certainly am looking at those. Including houses. Just that not many within a 10 min walking radius of the station. And epping doesn't have much parking options. Hmm @Qw3rty's find gives me a lot to think about.

  •  

    well of course they put up high price 1.4m and then if you offer 1.2m they will gladly accept (after pretending you are hard to please and you get a bargain of the year).

    direct from developer or agent? beware agent are not there to help buyer they are selling sellers items they dont care about you just commission from seller are in their mind.

  • +1 vote

    but the agent soon said even a 1.25 bid he can help negotiate.

    Per dragonindespair: Agents are "Sellers agents" and not yours. They're not your friend. If they blindly offer to come down to $1.2M, it means they can definitely go lower.

    Personally, buying an apartment that far from the CBD for $1M+ is crazy. A house I understand. Closer to the CBD I'd understand. But where the hell is the value in living in an apartment in Epping that's worth over a cool Mil?

    • +1 vote

      Completely agree. Just that we are looking to have a family so want to be close to family. Cheaper (free) child care and all. Makes me wonder if we are paying those childcare fees into the apartment lol (cries).

      •  

        Ah fair enough. Yeah factors like those will narrow your choices definitely. (Never tell the agent something like that though!)

  •  

    watch out for the Owners Corporation levies. It's easy to get caught up in the latest and greatest amenities but remember you are paying for the maintenance of these luxuries

  •  

    The same applies to 1 bedders and 2 bedders as well, especially in Epping. They dropped 10-15% from the quoted price in under a week. I have since reconsidered and didn't bother considering Epping anymore since the commute to/from the CBD wasn't spectacular.

    •  

      If you dont mind me asking which suburbs are you considering. Epping was 30 minutes train ride which was bearable for me (to townhall). But still a lot further than where I live now. Moving for sake of being closer to family.

    • +1 vote

      They will drop to or below the weekly rent level
      i.e If an apartment rents for $700pw then realistically $700K is what it should sell for if not LESS!
      NB: That equates to a 5% gross yield for an investor - not great considering the ever increasing cost of owning an apartment these days

  •  

    2016 - brand new 3br apartment from Meriton.

    Initial advertised price 1.1m price came down to 950k .. got it for slightly less than that.

    Recent property reports (not valuation reports) show value at 950-975k. Get $800pw rent. New buildings, you r paying future value, so factor that in.

    Fine if you are a holder, I wouldn't flip in current conditions .. and doesn't hurt with a lot of equity in play.

    •  

      Meriton, enough said. Plenty of stories of sub standard finishes from them and from an architectural perspective, their buildings are very bland.

  •  

    That's a lot of money for an apartment. You can buy mansions on acreage in outer suburbs of both Sydney and Melbourne for that amount with future possibility for subdivision for you or your children.

  • +1 vote

    If you can afford to get a house, rather than an apartment, then you should seriously consider it. Generally houses keep their value better than apartments and you don't have to deal with all the other people in the building. You only have to look through this forum to see people complaining about issues with their apartments and other people in the block. Then there are body corporate fees - which can be particularly high if you have a lift to maintain. I don't think you need to rush in the current environment so I would have a very good look around before you commit to anything - you are talking about a lot of money here so it is not something you want to regret.

  •  

    Its going to drop further towards the end of FY1819. it dropped about 8-10% from list price already vs last year this time

  • +1 vote

    I am from the Marsfield area and prices for Villas and townhouses here dropped from the top by about 7% in my guestimation. So about $850k now. In the near future Epping will be a bigger rail hub than it already is, but it is not a suburb that I am attracted to. I suspect that the big asian community in the area paticularly like 'new' properties and also many like apartments. For me it is a better lifestyle in a Villa or townhouse.

  • +3 votes

    Sit and wait for prices to drop.
    1000s of apartments being completed in Sydney over next 2 years.
    Sydney will be flooded with new apartments soon.
    Happens every property boom guaranteed!

    As a guide expect prices to drop to the weekly rent levels.
    i.e If property rents for $700pw expect price to drop to $700K or even lower!

    Given rents are currently slipping in Sydney in the current rental glut it will be very interesting to see how much prices fall over the next 12 months

  • +2 votes

    seriously now is not the time to buy, house prices are falling no one has any idea how long they will go.

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