Ray White Upper North Shore

This exponential growth echoed across the Lower North Shore as Cremorne saw a 30.6% growth in median house prices, followed closely by Northbridge at 25.5% and Naremburn at 23.6%. In this market update of a financial year none of us will ever forget, I look at the major factors (beyond low interest rates and COVID-19 induced increased time in the family home) influencing prices in the Lower North Shore. Streets of gold What we used to call “destination postcodes” have evolved and narrowed down to “destination streets” in the Lower North Shore as buyers zoomed in on prestigious spots. These are the specific streets locals want to live on. Think Bennett Street in Cremorne. After a two year drought on sales in the tightly held street, pandemic selling created a buying frenzy, with 8 two-bedroom apartments selling one after another, ranging from $1.05 – $1.55m. The ‘expat factor’ As recreational international travel came to an indefinite halt, expats across the world boomeranged back to Australia. More than 500,000 (according to the Department of Foreign Affairs) returned seeking the tranquil and prestigious lifestyle of the Lower North Shore. Many are returning from comparable real estate markets in the likes of Hong Kong, London and New York. Ignited by this new wave of potential buyers, increased market demand for prestige properties compelled prices to climb. Expats were determined not to miss out and began securing properties sight unseen before the borders had even opened. International search activity for properties on one portal, realestate. com.au , was up 6.37% in April — on top of what was already a mammoth 20% increase in the previous 12 months to 2019. Facetime inspections and video walkthroughs by buyers’ agents became the norm at property viewings. Expats were ready to buy ‘as is’ to avoid the inconvenience of relocating to rental properties when they returned. With another 34,000 reported to return home, it begs the question – where will they want to call home? Surge of upsizers The pandemic shifted buyer priorities as working from home became the norm. Coupled with ultralow interest rates and easy access to credit, locals began searching for more expensive properties with functional layouts and dedicated spaces to match our new way of living. Making up about 70-80% of luxury purchases, the prevalence of locals upsizing added pressure to an already competitive market. This pushed prices up further, as demand exponentially outweighed supply. For instance, in January, the well-kept local secret of Longueville emerged as one of Sydney’s most elite suburbs joining Mosman, Milson’s Point, Kirribilli, Cremorne Point in the top ten best performing suburbs for property prices, according to data house CoreLogic. In one sale, upsizers from surrounding suburbs emerged, fuelling competition and on the cusp Total Market Property Growth 12 months, houses Suburb Median Price Growth Cremorne $3.413m 30.6% Northbridge $3.840m 25.5% Mosman $4.427m 21.3% Castlecrag $3.350m 19.2% Source: Core Logic, Ray White – Lower Northern Sydney (12 months to May 2021)