Australian residents returning from all over the world, especially those from China who haven’t seen relatives in years and were horrified by Covid, could boost the high-end market further in 2023.
But experts are offering savvy buyers big discounts on low-priced properties all over Sydney this year.
Tammy Soglanich, Cohen Handler’s buyers agent, who appeared on the reality show Luxe Listings Sydney last year, said as people lowered fixed rates, “some will have to sell,” especially if they bought in recent years. increase.
Veteran prestige agent Craig Pontey, who recently took over the helm of McGrath’s flagship agency, Double Bay Agency, said: Amazing.
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Last year, Atlassian co-founder Scott Farquhar and his wife, investment banker Kim Jackson, sold at least 120 million dollars, including the $130 million sale at Point Piper when they fetched historic prices. suburbs, or about one-seventh of the Harbor City area, broke price records. Wentworth Street, Point Piper Trophy Home, Uig Lodge.
While top-end homes hit record-breaking prices last year, many lower-priced homes struggled, even in well-known suburbs.
According to PropTrack, rising interest rates, deteriorating market sentiment and buyer affordability barriers pushed median prices from Narrabeen’s northern beach suburbs (-18.3%) to Upper North Shore’s Wallawee (-21.8%). decreased to Lower North Shore (-6.5%) and East Queens Park (-5.6%).
PropTrack economist Angus Moore said:
Moore expects price declines to continue for much of the year, even in well-known suburbs.
“The RBA is likely to hike rates at least a few more times this year, and the impact of last year’s rate hike is yet to be felt.”
While optimistic about the ultra-luxury market, Ponti agrees there is an opportunity for lower-end buyers this year.
“The rest of the market is going to be a little messy… maybe downtown, ground level, or anything that’s a little off-paced with a bad layout will be harder to sell,” he said.
“So there is an opportunity, no doubt.
“Rates aren’t everything in the Eastern Suburbs, but these rises do affect sentiment.
“And at some point in the first half or second half of the year, mortgage holders will have to refinance. Instead of paying 2%, they will have to pay more than 5%.”
Meanwhile, Ponty sees a large number at Open Home. The Hampshire family’s home at 683 New South Head Road in Rose Bay, with a price guide of $9 million to $9.9 million, attracted a group of 60 on Saturday. .
Buyer agent Sogranich said, “The market is made up of so many micromarkets that, broadly speaking, I think there will be deals…We saw deals last year, and we are still seeing deals this year. I guess.”
She noticed investors trickling back late last year.
“Rents have risen dramatically, and those with cash are ready to get a bird,” she says.
“It’s a good time to do so. As competition for buyers decreases, more opportunities will emerge.”
Sogranich said buyers could benefit from 10, 15 or 20 percent price cuts on entry-level apartments, semi-apartments and homes.
“I’m currently helping buyers on the South North Shore,” she says.
“Look at the pockets of Cammeray and Wollstonecraft. Good neighborhoods that are close to public transportation and close to comfortable facilities always do well in the long run.
“On the Upper North Shore, look along the tracks in places like Lindfield for proven, established blocks.”
In the East, she suggests looking for old-style small blocks in Darlinghurst, Paddington and Woollahra.
Soglanich expects more records to be broken at the top end of the market through 2023.
TRG principal and Luxe Listings star Gavin Rubinstein says pricing will be key this year.
“We’re in a new world of pricing. The shift happened last year. If vendors can understand the fact that the market is reactive, the lack of choice could lead to strong results. says Rubinstein.
“East is East and we are in our own ecosystem, the Golden Triangle.
“There is a general shortage of quality supply, especially in single-family homes and very good apartments.”
One of his best lists so far this year is the stunning home of Global Art Advisory 1858 co-founder Viola Reichel and her daughters, Sophia, 12, and Olivia, 9, Rose He explains that it is located at 4 Courtenay Street in Bay. as “a very stylish well-appointed property in an idyllic eastern suburban location.”
For comparison, he cites three recent sales in the neighborhood ranging from $5.6 million to $6.38 million.
Raikhel, who also co-founded Vanishing Pictures with Miranda Darling, says he’s confident heading into the Feb. 14 auction.
“Finding a well-kept, loved, cared-for home that meets all the criteria is not easy,” she says.
The four-bedroom residence was renovated just before Covid, and Raichel has one favorite feature with buyers.
“We worked with POCO Designs to create a very beautiful library office that stood out at Zoom meetings held around the world during Covid,” she says.
Meanwhile, Monika Tu, founder of BlackDiamondz and star of Luxe Listings, is expecting $300 million worth of listings in the first half of this year, with Chinese and Vietnamese visiting Sydney for the Lunar New Year celebrations. of visitors say they will be here until the end of February. Even if only slightly.
She’s already in negotiations for some big deals.
“People are staying longer because some haven’t seen their family in years, and many come back to stay,” Tu said.
“Many of these people live in Australia, but they live in China.
“But Covid has scared a lot of people and they think now is the time to go back to Australia.”
She said returning Australians need space on the North Shore, “and tennis courts are always a favourite.”
“In the East, scenery and prestige are more important than size.”
Several major agents have already made some decent sales this year.Rain and Horn Doublebey’s young gun Alex Lyons is the late Dr. I just sold my house for $9.2. Two years ago M.
While trying to hit the market, Lyons had several buyers eager to pay the asking price. It was sold for less than the US dollar.
Laing and Simmons principal and Luxe Listings star D’Leanne Lewis gave the vendor an early Christmas present.
“Last year ended with a bang. Literally two days before Christmas, we sold two Leura Rd, Double Bay for street records,” says Lewis.
“If the market has a strong year, it always starts well, but if it doesn’t work out, it’s going to be sluggish early next year.”
She could not comment on the price, but other sources said it was sold for around $7 million.
On the lower North Shore, Atlas’ Bo Zhang and Michael Coombs sold 308 Edinburgh Road, Castlecrag for $13 million.
“February and March are going to be very strong for us,” says Coombs.
“At present, many Chinese buyers tend to stay after Chinese New Year, and the local market is doing very well with foreigners returning.”
Anthony Walls of Max Walls International agrees with this view, stating:
And Richard Simeon, principal of Simeon Partners, which set a record on the North Shore last year with Mosman’s $33 million in sales, expects a surge in listings to capitalize on buyer demand. “I think there will be a lot of prestige properties on the market,” he says.