Record property prices persist amid Sydney's lower North Shore slowing market: HTW
Sydney's lower North Shore suburbs making record-breaking sales aren't indicative of the actually slowing market, according to the June report from valuation firm Herron Todd White.
Prestige property on the Lower North Shore appears to be following the current general market trend, with a reduced number of potential purchasers and these same buyers now have the luxury of taking their time to make decisions in purchasing, the valuation firm suggests.
It hasn’t definitively resulted in reduced sale prices as yet, there are still some very strong results, noted the report.
In particular, Cremorne had a record suburb sale in March this year, with a prestige waterfront home selling for $18 million.
Indicating the continued strength of the prestige market, that record lasted just over two months, broken by the sale of 8 Wonga Avenue, Cremorne (pictured above) in late May for around the $19 million mark.
The purchaser is reportedly a foreign buyer, showing that they are still present and remain confident in this segment of the market.
The Lower North Shore market is currently in line with most other Sydney markets for the most part.
A general slow-down is being reported by local agents in the area with fewer potential purchasers at open homes and fewer bidders come auction time.
The region has had a relatively strong 71% clearance rate for the week ending 27 May, noted the report.
The valuers stated that "although the general lower North Shore market is showing some resilience, we do expect the market to further soften over the next few months and then stabilise towards the end of the year.
"The investor product in particular, as in other areas, appears to be constrained by difficulty in gaining finance."
It is becoming clear that it is in fact the restrictive lending environment that is the main driver of softening prices, rather than an actual lack of confidence in the market.
With the current banking royal commission being undertaken, we do not see any potential change in restrictive lending in the near future.
"The banking royal commission on lending restrictions will have less impact in the prestige market, which is likely part of the reason we haven’t seen the same clear softening market conditions for prestige property on the Lower North Shore compared to the general market" concluded the HTW valuers.
