Expats are back. Investors are dormant. A-grade property in the likes of Bondi Beach, Dover Heights, Bellevue Hill, Vaucluse and Rose Bay is achieving premiums – and fast, while developer stock is lagging. Here are our observations on the month of June in Sydney’s eastern suburbs real estate market. Let us know your thoughts.
$33,000,000 worth of Property Sold in June
A reemergence of expats from Hong Kong (fleeing civil unrest) is perhaps the most interesting shift in the eastern suburbs real estate market this past month. The owner-occupier section of the market is so competitive that 100 per cent of our listings, many before their auction date, were sold during June; totalling some $33million worth of stock.
To be fair, that stock is what we classify as “A-grade”; prime location, all the critical attributes from parking to views, good land sizes for houses, and reputable strata complexes for units. Prestige property is absolutely on fire. The Australian reported on the weekend that “the top end of Sydney’s mansion market has seen a dramatic rush of activity in defiance of the usual winter cool-down. While the supply of grand homes is relatively constrained, that has not stopped some big-name buyers diving in .” We’d concur.
But it’s not all roses in the eastern suburbs market. We estimate “lesser stock”, which we classify as B and C-grade, is off around 10-15 per cent on price, with the investor sector far less buoyant than owner-occupiers. Nowhere is this more evident than in Mascot, Alexandria, Waterloo, where an oversupply of developments is being exposed in these conditions, with investors being deterred by falling rents.
Our observation of vendor sentiment in June is best surmised by the word urgency. Vendors are wanting to sell now while buyers are behaving competitively and asset values are predictable, before the unknown of the post-JobSeeker/JobKeeper stimulus sets in. They’re taking advantage of today’s market under the assumption the market might get tougher towards the end of the year. The comment we heard this week was that while businesses are reopening and a semblance of normality is returning, perhaps those industries and operations may not be as profitable as they were pre-Covid.
Sold Before Launch!
One of our highlights of the month was selling 26 Lyons Street in Dover Heights, right by Rodney Reserve. Before the campaign commenced, we took some select buyers from our database to the property to get their feedback. The 550sqm of blue chip land sold before we were able to send it live. As we mentioned, A-grade stock is attracting competitive offers. It is a dual level home on a sought-after street, level land and a generous floor plan; all the ingredients required in this market to achieve a fast and strong sale.
An apartment sale worth pointing out this month was 3A 2-22 Knox Street in Double Bay, a glamorous house-sized residence in a desirable cosmopolitan complex redesigned by the internationally renowned Kann Finch Group. A central location, well appointed with elegant interiors… it’s no wonder it sold so well, achieving a price you’d expect for nearby homes.
Our Standout Sales
We had several apartments sell well this month, largely to owner occupiers. They were: Old South Head Road in Vaucluse, Benelong Crescent in Bellevue Hill, O’Sullivan Road in Rose Bay, O’Donnell Street in North Bondi, one in Penkivil Street in Bondi, and two for clients in suburbs outside our core markets; in Randwick and Pyrmont.
A-grade homes transacted this month included 78 Onslow Street in Rose Bay, 291 Old South Head Road in Bondi Beach, and 248 Military Road in Dover Heights; that’s the same street where we have just announced to the market two additional offerings; 180 Military Road Dover Heights, a glamorous freestanding home guiding high $4.6 millions and 237 Military Road Dover Heights, a freestanding residence with a price guide of $2.75million in our marketing this month.
The sale of the month, however, was achieved by Ben Cohen who operates in Sydney’s North Shore as the Goldman Bros specialist in that market. A stately Federation home with a park-like garden in Killara, 2 Karrange Avenue on 1,856sqm of rolling lawns sold in the high $6millions.
July is shaping up to be an exciting month, we expect it will be in stark contrast to the traditional winter month’s performance in Sydney. Barry’s one to watch is the Lighthouse penthouse apartment in the Pacific at Bondi Beach (see the feature image at the top of the post). On the northwest corner with 280sqm of internal space, the apartment is truly house-like, sitting across two storeys with high ceilings and all the light-filled glamour that you’d expect of that location on the iconic beachfront. This one will likely attract one of the expat buyers we discussed earlier on. Guide circa $8m.
- Posted by The Goldman Brothers
- On July 15, 2020
- 0 Comment