Sydney property trend is Nike Effect
Ray White Drummoyne principal Chris Wilkins is labelling the current buying trend he’s identified as the ‘Nike effect’ for it’s ‘just do it’ buying strategy.
After 25 years selling real estate in Sydney’s inner west, he said the “Nike effect” had ramped up in the last six months.
“I’m seeing buyers who are willing to pay above comparable prices just to meet their needs right now,” Mr Wilkins said.
He believes more than half of his buyers are ‘Nike-minded’ and prepared to pay over the odds for time, convenience and move-in ready instant purchases.
A ‘just do it’ attitude is also a competitive advantage in Sydney’s inner west, where the median house price in Drummoyne sits at $2.5M, and the median apartment sells for just over $1M.
With 26 and 25 average days on market respectively, Mr Wilkins said the Nike trend wasn’t going away, despite tighter lending conditions, with a 33 per cent increase in house prices year on year.
“This attitude is probably a broader consumer trend for instant gratification. Instead of waiting for two of three years or spending six months building a home, families want their dream house now, for example while their children are still at home”, Mr Wilkins said.
“Just as we expect goods to be delivered from across the globe in record time, buyers are not willing to wait to enjoy their ideal property like they were 12 months ago.”
He said it almost makes comparable sale prices a thing of the past.
“It certainly makes comparable sales a more interesting read than 12 – or even nine months ago. And as an agent, the onus is on me to know my buyers on a deeper level than ever before.
“I need to know where their families reside, where their kids school’s are, and what about the home appeals. We’ve had instances where mum is next door, so for the daughter, it’s worth paying over the odds,” he said.