The strength of the Sydney property market has been well canvassed but the sale of 44 Kingston Avenue Haberfield at the weekend has even experienced property market observers shaking their heads in disbelief.
The modest three bedroom, one bathroom, two-car residence set on 697 square metres changed hands last weekend for $2.62 million. It last traded in 1980 for $110,000.
Here are a few photos to put some background on the price tag.
While we’re not in the business of declaring whether Sydney is in a bubble or not, we do like to use all available information to allow you to make a judgement call.
We’ve run the numbers, and here’s what we found.
- Since the property last changed hands the sale price has increased by 2,282%. This compares to the consumer price index which gained 321% over the same period.
- According to data provided by realestate.com.au, the median price for a 3 bedroom house in Haberfield was $1.5 million as of March 23 this year. At $2.62 million, the sale price represents a premium to similar houses in the area of 75%.
- Up until a few months ago the property fetched $1,150 per week in rent. This equates to $59,964 per year.
- On a gross basis, that equates to an annual yield of 2.29%.
Is it the sign of a bubble or an astute investment? Only time will tell.