The 2074 Property Market Report with Matt Bolin
I was recently honoured to receive the award for Agent of the Year in Turramurra by RateMyAgent, the only awards in the industry based on customer satisfaction. Having been a Turramurra local, born and bred, and having been an agent in the area for over 13 years I love helping my clients maximise their property’s potential to get the highest return on their investments.
At Ray White Upper North Shore, we’re proud to have sold more property across the Upper North Shore than any other agency in 2022. This means we meet more buyers than anyone else, giving our vendors a huge advantage.
There is a lot of media speculation about the property market at present, so let me explain what’s really happening locally.
It’s the news many locals have been waiting for, according to NEOVAL, house prices bottomed out in December 2022 and have increased by 2.7% since then. A combination of increasing population and housing shortages are the likely key drivers, along with very low stock meaning more competition between buyers is stabilising the market and giving price the opportunity to rise.
The problem we’re seeing on the Upper North Shore is that listings are down almost 30% on the same period last year. February through to the Easter break is usually the second biggest selling season of the calendar year with buyers and sellers resuming their plans around moving on to their next chapter. Some sellers have a perception that selling in spring and autumn can be advantageous due to weather and gardening conditions but in reality, there’s no ‘wrong’ time to buy or sell a property. The factors that trigger buying or selling a home typically have nothing to do with seasons but are driven by much larger factors such as changes in work or family dynamics.
While interest rate rises will no doubt continue to restrict some buyers’ borrowing capacity, there are many qualified, motivated and eager buyers in the market at present. With competition increasing and low stock levels the market is going to be exciting to watch this year.
Let’s take a look at two factors affecting the housing market:
Australia’s population growth increased by 290,000 people in the 12 months to June 2022 and this rate of increase is expected to continue to increase this year. While this increase is good news for sectors experiencing employment shortages and for our economy, it is coming at a time when the number of houses being built is starting to fall. A construction crisis and a fall in housing approvals are starting to show up in home completions. In some parts of Australia, a lack of housing is showing up in skyrocketing rents and house prices that are remaining high despite the sharp rise in interest rates. Construction costs will start to moderate this year but higher costs of finance mean that the appetite to invest in new housing is very low.
Chinese demand for Australian property
Relative to the red-hot demand for Australian property we saw from China at the end of last decade, the number of Chinese purchasers is likely to remain comparatively low. Nevertheless, property investors from China are active globally and we will see a pick up in buyer activity of new developments now that borders have re-opened.
What does this mean for Turramurra?
The median price for a home in Turramurra is currently $2,900,000 and for an apartment is $980,000. The Upper North Shore is incredibly insulated against market fluctuations as the demand from buyers is always so strong. The drawcard of great schools, shops, parks and community vibe resonates with buyers moving from the Lower North Shore and further afield.
Throughout 2023 we will see increased competition for properties which could drive up prices. More buyers coming from out of the area will be looking for new builds, recently renovated properties or great land for a knock-down rebuild. Quality developments are also in high demand like unit 2/7-11 Turramurra Avenue, Turramurra which I recently sold for $1,855,000. This was my 29th sale of units in the Aurum complex and 10 years after completion it remains one of the most in-demand complexes.
We can’t predict the future but what we do know is that market fundamentals right now are helping our clients who are looking to sell. Selling your home is a big decision and me and my team are here to assist you throughout the sales process. We aim to ensure every property reaches every potential buyer (both active and passive) and that we achieve the highest possible price while making the process as seamless as possible. If you’d like to learn more about selling your home, please get in touch.
Licensed Real Estate Agent/Partner
Ray White Upper North Shore
+61 417 269 023