AUTUMN REPORT The new year bringsÂ a flood of properties onto the market!
Kirsty Freyer Real Estate Agent Richardson & Wrench Mosman/Neutral Bay 646 Military Road Mosman NSW 2088 02 9969 7622 - 0411 662 533 email@example.com
Quarter wrap up The number of properties currently on the market in comparison to the start of Spring 2017
The property market in 2017 did not end with a bang, but with a splutter. 618 disclosed sales in Mosman is the lowest number of properties sold in over 24 years, (according to APM PriceFinder) the closest figure being 717 in 2008 during the GFC (Global Financial Crisis). The low numbers of sales didn't affect the overall sales prices however, with a 6.2% house and 12% apartment price growth respectively over the last 12 months. When compared to a 15.9% house and 20.4% apartment price growth respectively in 2016, it was certainly obvious that vendor and buyer confidence dipped in 2017. This was mainly due to media reports of the Sydney Market prices cooling, even thought the lower north shore prices were not affected. It is important to not compare one area with another when looking at market price growth and decline in Sydney. Supply and demand is the biggest factor and in the lower north shore properties are certainly high in demand and in short supply. Some areas in Sydney are experiencing a decline in housing prices due to a surge in new apartment developments, and although there are a few new apartment complexes being built in our area, this will do nothing to dampen housing prices. In fact, it will bring more people into the area stimulating further growth opportunities with local businesses, enticing more people to visit and want to live in the area. Supply and demand. The 2018 property market is stronger than it was in the final quarter of 2017 and prices seem to be stabilising. The total number of properties on the market now are higher across every suburb on the lower north shore then they were at the start of the Spring selling season
last year (see above). It is also noticeable that the number of properties for lease have declined across all suburbs. This could mean more landlords are selling or fewer tenants are leaving the area and renewing leases. As we move from Summer into Autumn, the market has suddenly accelerated, as I find myself attending no less than 2 appraisals a week! There are currently 95 properties (houses and apartments) available to buy in Mosman, in-fact the lower north shore had 70 published auctions and a clearance rate of 78.6% on the 24th February, one of the highest in Sydney. Let's face it, property prices in this area simply will not be going down, it may plateau during times of financial unrest however, it is extremely unlikely that the prices will fall. If you need any evidence of this, have a look at the Sales & Growth Charts (overleaf). If you would like a breakdown of price growth percentages for each year or another suburb, please contact me and I would be happy to provide a personalised detailed report.
Changes in the Industry There have been a few recent changes in the Real Estate Industry that will affect how Agents operate and how you sell your home. Here are a few of those new changes: Those who acquire a second-hand residential property after May 10, 2017, which contains previously used depreciating assets, will no longer be able to claim depreciation on those assets. Those who purchase brand new property will carry on claiming depreciation exactly the way they have done so to date. NSW government doubled stamp duty for foreign investors from 4% to 8% and increased the annual land tax surcharge from 0.75% to 2%
New rules for foreign resident capital gains withholding apply to vendors disposing of certain taxable property under contracts entered into from 1 July 2017. The changes will apply where the contract price is $750,000 and above (previously $2 million) and the withholding tax rate will be 12.5% (previously 10%). Reforms by the NSW Department of Fair Trading into the qualifications of real estate agents, to improve regulation and skill level of agents should be announced by mid 2018. This will include; Creation of the category ‘licensee in charge’, requiring additional skills and experience to run an agency, Improved entry level requirements for new agents, and a reform to ensure agents obtain a licence within 4 years of holding an entry level Certificate of Registration.
Mosman’s first boutique hotel
Telopea, built in 1886 in a Victorian Filigree architectural style house at 89b Cowles Road, was built together with the adjacent Boronia House by carriage builder brothers James and John Kearey, who paid £7,000 for the land in 1885. Boronia House has been largely preserved and is now owned by Mosman Council. The former 'Telopea', known now as 'The White house' has had its character stripped away in the past few decades, the whole front of the building facing Military road had its gardens turned into a petrol station, now a carwash. It was converted for commercial use in 1954 and is currently an 840-square-metre block of 10 offices. Emerald City Hotels, which bought the property for $4.82M in 2016, will transform the building into a 26
room boutique luxury hotel in a project estimated to cost more than $3.2M. The original building, will be restored and a new wing will be added to contain more rooms. They will be reusing the stained glass windows and keeping all the fireplaces in the redevelopment, which is to be named 'The Albert' after his grandfather, who was a Mosman resident. The fact that the nearest competitor is Cremorne Point Manor, indicates the critical shortage of hotel stock on the lower north shore. Between Cremorne and Manly, there are currently no hotels.
Summer Suburb Snapshot Mosman Number sold: 43
Sales in the $700,000 - $900,000s*: 12
Number sold: 21 Highest sale price*: $2,750,000 (reportedly) 7/88 Berry Street House Avg*: $2,315,000 - Apartment Avg* $1,129,895 Street with the most sales*: Walker Street Sales $10,000,000 and over*: 0 Sales between $5,000,000 - $9,000,000s*: 0 Sales in the $3,000,000 - $4,000,000s*: 0 Sales in the $1,000,000 - $2,000,000s*: 11 Sales in the $700,000 - $900,000s*: 9
Cremorne / Cremorne Point
Number sold: 34 Highest sale price*: $4,600,000 (reportedly) 41 Tobruk Avenue House Avg*: $3,595,000- Apartment Avg* $1,162,052 Street with the most sales*: Young Street Sales $10,000,000 and over*: 0 Sales between $5,000,000 - $9,000,000s*: 0 Sales in the $3,000,000 - $4,000,000s*: 5 Sales in the $1,000,000 - $2,000,000s*: 16 Sales in the $700,000 - $900,000s*: 6
Number sold: 3 Highest sale price*: $2,756,000 (reportedly) 6 Dalkeith Street House Avg*: $2,553,000 - Apartment Avg* $1,054,000 Street with the most sales*: nil Sales above $10,000,000*: 0 Sales between $5,000,000 - $9,000,000s*: 0 Sales in the $3,000,000 - $4,000,000s*: 0 Sales in the $1,000,000 - $2,000,000s*: 3 Sales in the $700,000 - $900,000s*: 0
Highest sale price*: $6,570,000 (reportedly) 18 Upper Spit Road House Avg*: $3,862,778 - Apartment Avg* $1,187,647 Street with the most sales*: Bradleys Head Road Sales $10,000,000 and over*: 0 Sales between $5,000,000 - $9,000,000s*: 3 Sales in the $3,000,000 - $4,000,000s*: 5 Sales in the $1,000,000 - $2,000,000s*: 19
Number sold: 27 Highest sale price*: $5,050,000 (reportedly) 10/9 Hayes Street House Avg*: $503,188 - Apartment Avg* $1,167,822 Street with the most sales*: Kurraba Road Sales above $10,000,000*: 0 Sales between $5,000,000 - $9,000,000s*: 1 Sales in the $3,000,000 - $4,000,000s*: 0 Sales in the $1,000,000 - $2,000,000s*: 9 Sales in the $700,000 - $900,000s*: 9 *Information does not include undisclosed property sales
Number sold: 12 Highest sale price*: $2,135,000 (reportedly) 23/11 Amherst Street House Avg*: $1,888,333 - Apartment Avg* $1,334,375 Street with the most sales*: Miller Street Sales above $10,000,000*: 0 Sales between $5,000,000 - $9,000,000s*: 0 Sales in the $3,000,000 - $4,000,000s*: 0 Sales in the $1,000,000 - $2,000,000s*: 8 Sales in the $700,000 - $900,000s*: 3
Sales & Growth Charts Houses
If you would like a detailed report of a particular suburb, please contact me and I can email or post this to you. *Information taken from PriceFinder and CoreLogic websites on 1st March 2018
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Published on Mar 8, 2018
Published on Mar 8, 2018
The 2018 property market is stronger than it was in the final quarter of 2017 and prices seem to be stabilising. The total number of propert...