Welcome to the property market update for Sydney’s Lower North Shore, Winter 2019. Much like most of metropolitan Sydney, the Lower North Shore property market has experienced decreased stock levels this winter which has translated to a lower number of sales and marginal price movements.
Price growth has only slightly increased in most Lower North Shore areas, as a result of low stock and increased competition, with the exception of homes with no little or no redeeming features. Clearance rates are however on the whole, mostly increasing to a healthy figure. Quality homes that are marketed correctly are selling, and selling well. Many properties are now going to Auction which is a sign of increased buyer numbers giving agents confidence in a multiple bidder scenario. With the lower volumes there are more buyers at the auctions and we’re seeing reserves being exceeded, in some cases by 30-40%.
The positive impact on sentiment from the election result and the two recent interest rate cuts has seen an increase in buyers at open for inspections. The general consensus from agents I have spoken to also point to the impact of the Royal Commission and the Federal Election as the reason why stock levels have decreased. One agent believed the number of Saturdays (5 to be exact) between the election and the school holidays had also had an impact this year. What we are therefore seeing is buoyed confidence by buyers on low stock levels, which isn’t necessarily a sustainable trend. With mostly B-grade and lower properties on the market at the moment, agents are desperate for owners to list their properties for sale to take advantage of the increased buyer demand.
Higher listing volumes in Lane Cove and Ryde areas due to the lower ratio of houses to apartments are producing more volume of sales. Areas like Longueville, Hunters Hill and Mosman, where the mix is geared more toward houses, are less active although quality homes are still generating large amounts of interest and selling quickly. Again, this is due to limited choice rather than a large increase of buyers.
A couple of significant sales I would like to point your attention to are:
Ryde: https://www.realestate.com.au/sold/property-house-nsw-north+ryde-131531278 – This property sold a year ago for $1.35m. A developer has acquired the site and built a property to meet the market. That house has now sold for $2.6m a year later. For the Ryde suburbs, this has become more common to satisfy demand from larger immigrant families.
Hunters Hill: https://www.realestate.com.au/sold/property-house-nsw-hunters+hill-131109382 – In June this waterfront property was guiding at $4.75m. It sold at Auction for $5.45m. In its current state, it is unlivable and requires significant renovation and investment, or knocking down and rebuilding. It’s an example of prime real estate in a tightly held area like Hunters Hill, continuing to command strong interest.
Most agents are optimistic about spring, and historically they have reason to be. Whilst nobody has a crystal ball, the general consensus is that volumes will increase to satisfy the buyer pool. The impact of higher volumes may lead to a reduced ‘FOMO’ feeling, which is currently simmering in the market. Quality properties, however, will continue to generate strong competition.
If you are looking to upgrade your home in Sydney’s North Shore property market, please get in touch for a confidential no-obligation chat.