Insight

08.02.17  Property Trends

 

Movement In The Top End Of Town: Keep Your Eyes On The East

The eastern suburbs market is off to a strong start this year and we’re already noticing a loosening up of stock in the east.

This is an encouraging sign that there’s likely to be more choice for buyers in 2017, and more movement overall, than there was last year.

At the top end of town, there are still many empty nesters wanting to scale down and we’re already having appointments with sellers at this end of the market. While this will take some time to translate into properties on the market, this is a good sign. There’s still no shortage of upgraders waiting for larger homes to come up for sale – properties which have been rare in the past nine months – so it could result in some strong auction activity over the rest of the summer season as buyers tackle the fear of missing out.

The shifting towards a downsizing culture is creating a real need and desire for luxury-style apartments, particularly in Paddington and Woollahra. We’re seeing upper and lower north shore homeowners, as well as those in Bellevue Hill and Vaucluse, looking to sell and buy an apartment in Elizabeth Bay, Potts Point and Point Piper.

Usually, these are homeowners selling properties in excess of $10 million, looking to then spend $3.5 million to $6 million on a new top-of-the-range apartment after their transaction costs. Often, they’ll be selling some of the more tightly held larger land holdings and homes in the east.Another change in the top-end of the market is the re-emergence of expats, who are coming back at a notable rate. This is usually based on the exchange rate, with those from Asia and London in particular showing interest. Many homeowners intending to come back within 12 months to three years are still focused on what is happening back home and keeping a close eye on the market and the economy.

Those who live in London, but own property in Sydney, are looking to capitalise on the market here and take advantage of the exchange rate on the other end. An example of this is 3-13 Holdsworth Street in Woollahra, which sold in November for an undisclosed amount. This property was sold to take advantage of the exchange rate in the UK.

With such strong price gains in the past few years, it’s fair to guess that many homeowners will be wanting to cash-in. CoreLogic’s latest Pain & Gain report found the average profit made by those in Woollahra LGA in the September quarter was $670,000, $532,750 in Randwick and $550,000 in Waverley. These are some of the most substantial gains most homeowners will have experienced to date.

There are still a lot of buyers and vendors sitting on the sidelines, wanting to know whether the market is it up or down or sideways. It’s still early days for real estate, but now we are starting to see people commit on properties on the top end.

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Eastern Suburbs Market Report

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