Autumn Property Report 2023
As the year moves on and autumn sets in, both the leaves and the property market are changing here on the Northern Beaches.
Globally countries are wrestling with inflation and interest rates. The first quarter of 2023 has seen a steadying sales market, driven by reduced stock levels and an increase in buyer demand in spite of higher borrowing costs.
CoreLogic’s national home value index (HVI) posted the first month-on-month rise since April 2022, up 0.6% in March. As is to be expected, dwelling values were higher in the four largest capital cities, led by a 1.4% gain in Sydney. CoreLogic’s Research Director, Tim Lawless, attributes this rise to a combination of low advertised stock levels, extremely tight rental conditions, and increased demand from overseas migration. Mr Lawless said the following about the recent changes in the market:
“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost -20% below the previous five-year average. Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly -7% below the previous five-year average through the March quarter… Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices.”
This upward price pressure has been seen firsthand at Guildea, with our standout sale of the quarter being 3/45 The Crescent in Manly: a two-level, 3-bedroom waterfront apartment, which sold for $8,600,000. As has been the case for much of the past year, the prestige market has been the strongest here on the lower Northern Beaches, especially in Manly.
Now to the rental market. The end of COVID travel restrictions, a surge in immigration, and a continued fall in the number of new dwellings built have combined to create a severe shortage of properties, with little relief in sight for renters.
The other side of this equation is that we are seeing the best rental returns on investment properties in the last 5 years. One example of this is a 1 bedroom apartment on Sydney Road, Balgowlah, listed for sale at $800,000 and currently being rented for $700 per week. Prestige homes in Seaforth and Clontarf are also seeing the effects of a tighter rental market, with properties attracting up to $4000 per week. These returns, combined with the significant falls in prices we saw for smaller apartments last year, present some fabulous buying opportunities for potential investors.
Finally, we have several new homes and apartments coming up for sale and are seeing significant off-market activity, with strong results from sellers having matched buyers inspect their properties without the need for a standard advertising campaign.
It is more important than ever to have a team with the knowledge and experience on your side to help you navigate a turbulent real estate market. If you are considering making your next move, speak with us now so we can help you work out what are the best options, and make sure you achieve the best possible sales price.
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Life’s Better on The Beaches
Jason Guildea – Principal
