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Why the Lower North Shore is bucking the Sydney property downturn

Suburb Profile

1 April 2019

Recent media coverage points to drastically falling prices in areas of large supply in the Sydney property market. Despite these reports driving an overall drop in enquiries about projects, there are pockets of Sydney that still represent significant development opportunities and plenty of growth potential.

 

In the Lower North Shore, we’re seeing strong demand for the right product, with prominent residences like eva Mosman, Balgowlah Residences and Blue Lavender Bay receiving a high volume of interest. The resilience, a result of limited stock is evident in the landmark sale of a 2-bedroom property at Blue for $4,120,000, driven largely by its location, harbour views and quality finishes. Local auction clearance rates of 80%, well above the city-wide 61% average, also indicate robust demand in the area.

 

The resilience of the Lower North Shore region is no surprise considering its central location and lifestyle appeal for the right types of buyers. The area is an attractive prospect for professionals and families who want to live within arm’s reach of the CBD and some of Sydney’s top-rated schools.

 

Likewise, many downsizers living in the North Shore are selling large family homes in favour of new apartments once the kids have moved on. These are buyers who are willing to pay for quality finishes and a convenient location within walking distance of local shops and amenities.

 

Earlier this month, a two-bedroom Kirribilli apartment sold for $4.9 million – over $900,000 above the reserve price – as downsizers battled it out at auction for the property’s panoramic harbour views and tasteful interiors. The result was well above the suburb’s median apartment price of $1,282,500.

 

The consensus among local property agents is that a lack of suitable stock is driving more aggressive bidding and willingness to spend amongst these key buyer groups – affluent downsizers and professionals.

 

The key takeaway here is that finished new properties of a high quality, especially those with waterfront views, will always draw interest – even in a declining market. Developers wanting to capitalise on the buoyancy of the area should look to suburbs where supply is short, but demand is high. Mosman, Neutral Bay and Cremorne could prove to be especially fruitful, as these areas have a lack of brand-new stock but plenty of interest from prospective buyers.

 

 Interested in discussing opportunities in the Lower North Shore? Feel free to get in touch with me directly at Darren.booth@cbre.com.au.

 

Darren Booth

Senior Sales Executive

 


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