NSW MARKET OVERVIEW
NEW SOUTH WALES
Peter Kakos - Managing Director | Atlas Real Estate
The words “housing crisis” are echoing through the media at the moment, within your market are you seeing it getting easier or harder for buyers to get into the market?. The Lower North Shore Market of Sydney covers a broad area with quite a cross-section of property, including prestige waterfront property, large luxury homes, high-end apartments with harbour views, semi-detached property and an array of entry-level apartments. This, coupled with access to harbour beaches, attracts varying demographics looking for the lifestyle, schools and multiple transport options the area boasts. The “housing crisis” in Sydney is a complex and evolving issue influenced by supply, demand, and economic conditions. Even with occasional market corrections, property prices in Sydney remain steep compared to many other cities. Although property prices in Sydney have been known to fluctuate, they tend to be high overall. The market remains competitive and expensive, particularly for those trying to enter for the first time. There are multiple market segments, and overall, the consensus is that it remains challenging for buyers to enter the market. However, in many respects, it is the tale of two markets, each impacted by different variables. Interest rates play a crucial role, particularly for lower-end (entry-level) properties. If rates are high, borrowing becomes more expensive, which can put additional strain on buyers. This, coupled with broader economic conditions, including cost of living, employment rates, and economic growth, also affects the housing market. Uncertainty in these areas can make it harder for buyers to commit to purchasing a property. The luxury property segment on the Lower North Shore typically withstands economic fluctuations and rising costs, largely due to its affluent buyer base, limited supply, desirable locations, and global appeal. These factors contribute to the resilience of luxury real estate values, even amid broader
market challenges. There is still a degree of price sensitivity, as evidenced by days on the market and asking for price-to-sale price differentiation. As the buyer pool remains strong, a considered approach is still evident as more global economic factors and trends, including foreign investment and political stability. What are you seeing in the market in terms of residential enquiries on property? And as price guides become more accessible online, what kind of enquiry are you receiving? Price guides are still not mandatory in online advertising, so many buyers still seek ranges outside of their search criteria on portals. As a whole, though, our property inquiries tend to reflect a mix of factors influenced by the area’s unique characteristics and broader market trends. Downsizers and Upsizers are our most significant enquiry source. The Lower North Shore attracts both downsizers looking to move from larger homes to more manageable properties and upsizers seeking larger homes with more space for growing families. Many inquiries likely focus on family homes with multiple bedrooms, proximity to good schools, and outdoor spaces. Buyers are also drawn to the area’s lifestyle appeal, including its parks, waterfront areas, and overall community feel. Properties with easy access to these lifestyle benefits can generate significant interest. Given the affluent nature of some areas on the Lower North Shore, there is a significant interest in high-end, luxury properties. These inquiries might focus on exclusive features like waterfront views, modern designs, and high-end finishes. Investors are also prominent and will show interest in properties with strong rental yields or potential for capital growth. Many buyers are also looking for opportunities to renovate and/or develop and have expressed a desire to customise a home to their taste or to capitalise on potential value increases through improvements.
PETER KAKOS
26 – September / October 2024
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