Hello again and welcome to our Northern Beaches property roundup for Summer. Somehow, another year has flown by before we’ve really had a chance to register it! The challenge continues to be inflation, the effects of which are being felt both in Australia and abroad. With the Reserve Bank of Australia almost tripling the cash rate since June, the cost of borrowing has risen steeply in the second half of the year, prompting the first real declines in property prices in more than a decade. We have seen a tighter, balanced market this quarter, with reduced stock levels and steady buyer enquiries. As has been the case throughout 2022, the prestige market in Sydney and particularly in the Northern Beaches, remains very strong. The standout sale locally was an incredible $21,500,000 for 2 Reddall Street just above the Manly Surf Club, while a waterfront property on Seaforth Crescent went for $9,750,000, and another in Clontarf sold for $8,950,000. Here at Guildea, we are especially proud of the recent sale of 35 Beatty Street in Balgowlah Heights, a spacious 5-bedroom property situated above Forty Baskets Beach and offering spectacular views across North Harbour and Manly Cove. Selling before auction and with several offers, 35 Beatty Street proves that the upper end of the market is still in sought after demand from buyers. Major changes are being seen in the rental market, however, as the cost of living begins to bite family budgets shrink in accordance. In the past quarter, we have seen enquiry and inspection numbers for houses drop off as demand has increased for units and townhouses, evidencing the fact that renters are looking for smaller, more cost-effective properties to lease during these times of economic uncertainty. An interesting development over the last few months has been the downturns seen in the regions. Having experienced unprecedented growth throughout the pandemic, regional centers in NSW are now seeing a decline in both house values and sales volume that is outpacing that seen in many of the state capitals, according to Corelogic. Lifestyle regions have been some of the most significantly impacted, with price drops of 6% or more in the Southern Highlands & Shoalhaven, Richmond-Tweed (-11.7%), Illawarra (-7.1%) and Newcastle & Lake Macquarie (-6.1%) over the quarter. Whether these decreases are the result of homeowners choosing to return to major metropolitan areas, or being forced to sell second properties in response to economic pressures remains to be seen but it is a trend that should be expected to continue into 2023. Don’t forget to reach out to one of our Guildea Residential team for any support you may need; whether you are buying, renting or selling! Life's Better On The Beaches Jason Guildea – Principal 0411 859 505 jason@guildea.com.au Market Overview for 2022
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