The lower north shore is seeing more buyers coming from other areas of Sydney and overseas.
The Mosman market is the strongest I have seen it for many years and a very exciting time for buyers and sellers alike. We have seen many families take advantage of strong market conditions and upgrade to their ideal home. Downsizers are also capitalising on great results and moving to quality, low maintenance apartments.
Over the past two years there has been significant activity in Mosman and its surrounds in the sub-$1.5 million price bracket, with the last 12 months also showing strong growth in the $1.5 million to $3 million range. The prestige market is now gaining momentum with increased activity in the $3 million to $10 million price range over the past six to eight months. There are many contributing factors however it’s been largely due to the weaker AUD, historically low interest rates, rising business confidence and strengthening of the financial services and banking sectors.
Over the past two months, our Mosman, Neutral Bay, Northbridge and Chatswood offices have sold eight properties between $7 million and $12 million, a great sign for the prestige market as it shows both strength and consistency. We have also seen a significant increase in expats returning to the market, buying now for investment with the intention of moving into the property when they return. Strong rental yields and low vacancy rates have contributed to this with expat activity most prevalent in the $3 million to $6 million price bracket.
Chinese interest in Mosman and surrounds continues to be high. February and March are traditionally very active due to the Chinese New Year, as well as the summer months of October and November. However we have seen this segment of the market slow (compared to 12 months ago) due to increased competition. There is now strong activity across all buyer groups, from expats to out-of-area buyers. Our lower north shore offices currently report that over 60 percent of buyers are from out-of-area, with a big increase from the Eastern Suburbs, Inner West and the Hills District. This is compared to three or four years ago when less than 50 percent of buyers were from out-of- area.
While it may seem like a sellers’ market, there are great opportunities for buyers. I recommend checking out properties that have been sitting on the market for a while, or look towards suburbs where there is less competition. On the lower north shore, areas such as Wollstonecraft and Cammeray are undervalued in my view and present great buying opportunities. Beauty Point in Mosman also offers good value for money. The hot spots with the most activity are suburbs such as Kirribilli and McMahons Point. Areas close to the city with good transport links and lifestyle amenities are always going to be in high demand.
Whilst the market is buoyant, it’s still important for buyers and sellers to research thoroughly and due their due diligence. Sellers must ensure they market and price their property correctly - this can be the difference between a good result, and a great result. Buyers should ensure their finances are in order so they can act straight away. Many properties are selling prior so being able to move quickly is paramount.
Overall confidence has returned to the Lower North Shore residential market and its surrounds with the momentum expected to continue throughout 2015.