There has been much literature recently on the state of the property market, including a foreseeable correction, and media reports speculating “doom and gloom”.
It’s important, however, that the market is analysed in sub-markets.
For sure, the market- generally speaking- has softened. Changes in APRA regulations, coupled with changes in banking regulations have made it harder to obtain finance. Paying pack the principal may also cause financial stress, increase supply stock (especially of investments) and constrain demand.
However, prestige luxury properties throughout the eastern suburbs are still performing well and the market remains solid. This spectrum of the market is defying the general trend.
For example, an older style three bedroom cliff-front cottage sold in Dover Heights for $6 million and a luxury home in North Bondi which previously sold in 2015 for $8.55 million has reportedly re-sold for $11 million.
North Bondi and Bondi Beach remain popular by virtue of the attractiveness of the lifestyle, cafes, restaurants, boutique shops and the quality of the developments.
Also in the east, a luxury home in Bellevue Hill reportedly just sold for approximately $20.4 million and at the upper echelon, a Point Piper Estate has reportedly sold for $100 million, which is a new record for Sydney. This all indicates the market remains solid for luxury properties due to the lack of stock.
Luxury apartments also remain well sought after, in particular luxury new apartments in Double Bay, by virtue of the close proximity to the CBD and convenience to cafes and the lifestyle which the location affords. We see this across the city, however: properties with stunning iconic views (such as the ocean and beach or Sydney Harbour) and located in prime locations, generally remain highly sought after purely for the quality of the lifestyle, thus, buyers at the prestige spectrum are still prepared to pay top dollar and high prices for the right properties.
Here is a sample of valuations which my office has completed and/or in progress include the following:
- Development projects– Darling Point and Bellevue Hill
- Valuations for unit entitlement purposes – North Bondi, Bondi Beach and Bondi Junction
- Valuation of various residential and commercial properties for capital gains tax purposes – Bondi Junction and Elizabeth Bay
- Numerous expert witness valuation reports for matrimonial property settlement purposes (across Metropolitan Sydney)
- Valuation of a shop in Paddington – family law proceedings
- Shadow expert witness report – Cronulla
- Valuation for Supreme Court Matter – Newtown
- Valuation of common space – Coogee
- Valuation of a small strip of land – Tamarama
- Valuation of a block of shops and residential units for pre-purchase advice – Bondi Beach
- Boarding house – Kensington
- Valuation advice for acquisition and resumption matter – Balgowlah
- Waterfront site – Sans Souci
- Valuation of a mixed use retail/residential building – Chippendale (St George Bank)
- Valuation of a luxury house in Seaforth for mortgage purposes (Westpac Bank)
- Valuations of various properties throughout the eastern suburbs and northern beaches (Macquarie Bank)
For any clients requiring a valuation report, anywhere in Sydney or NSW, I would be delighted to assist.