PHOTO: Buyer’s agent Tammy Soglanich of Cohen Handler says there will be opportunities across Sydney this year. Picture: Julian Andrews.
Returning Australian residents from around the world — especially those from China who haven’t seen their relatives for years and have been spooked by Covid — are likely to further boost the top-end market in 2023.
But experts tip big discounts for savvy buyers for lower-priced properties across Sydney this year — even in prestigious suburbs.
Buyer’s agent Tammy Soglanich of Cohen Handler, who appeared in the reality show Luxe Listings Sydney last year, says as people come off their fixed rates, particularly if they’ve bought in recent years, “some will have to sell”.
Veteran prestige agent Craig Pontey, who has recently taken the reins at McGrath’s flagship Double Bay agency, says: “The top end of the market will get stronger, no doubt … Aussies returning from Singapore, Hong Kong and Shanghai — it’s going to be quite phenomenal.
683 New South Head Rd, Rose Bay, attracted 60 groups on Saturday.
Craig Pontey of McGrath Double Bay has a price guide of $9m to $9.9m
Last year, price records were smashed in at least 120 suburbs, or about one seventh of Harbour City areas, including a $130m sale in Point Piper when Atlassian co-founder Scott Farquhar and his wife, investment banker Kim Jackson, snapped up the historic Wentworth St, Point Piper trophy home, Uig Lodge.
But while the very best homes commanded record-breaking prices last year, many lower-priced homes struggled, even in prestigious suburbs.
Interest rate rises, deteriorating market sentiment and affordability barriers for buyers saw median prices drop, according to PropTrack, from the northern beaches suburb of Narrabeen (-18.3 per cent), to the upper north shore’s Warrawee (-21.8 per cent); the lower north shore’s Cremorne (-6.5 per cent) and the east’s Queens Park (-5.6 per cent).
PropTrack economist Angus Moore says: “We have had some very big sales at the very top of the market, but that’s a narrow pool of potential buyers and properties and people are less constrained by financing.”
Moore anticipates price falls will continue for much of the year, even in prestigious suburbs.
“The RBA is likely to increase rates at least a couple more times this year, and the impact of last year’s rises is yet to be felt.”
Despite his optimism about the ultra-prestige market, Pontey agrees there will be opportunities for buyers this year at the lower end.
“The rest of the market will be a bit messy … anything that’s a bit off the pace, perhaps in a busy street, ground-level or bad layout, will be harder to sell,” he said.
“So there will be opportunities — there’s no doubt.
“While the eastern suburbs is not all about interest rates, those rises do affect sentiment.
“And at some stage, in the first or second half of the year, mortgage holders are going to have to refinance — instead of paying 2 per cent, they’re going to have to pay 5 per cent or more.”
Viola Raikhel and her daughters Sophia (12) and Olivia (9) at their Rose Bay home, which is up for auction with TRG principal Gavin Rubinstein for February 14 auction.
The stylish home is at 4 Courtenay Rd, Rose Bay.
In the meantime, Pontey is seeing big numbers at open homes, with the long-held Hampshire family home at 683 New South Head Rd, Rose Bay, which has a $9m to $9.9m price guide, attracting 60 groups on Saturday. “It was packed,” he said.
Buyers agent Soglanich says: “The market is made up of so many micro-markets, so speaking broadly I think there will be deals … we saw deals last year and we will see deals this year.”
She noticed investors starting to trickle back in the second half of last year.
“Rents increased dramatically and people with cash are prepared to grab the bird in the hand,” she says.
“It’s a good time to do so. With buyer competition decreasing there are more opportunities.”
Soglanich says buyers could benefit from price drops of 10, 15 or even 20 per cent on entry-level apartments, semis and houses — even in salubrious Mosman.
“I’m helping buyers on the lower north shore at the moment,” she says.
“Look in pockets of Cammeray and Wollstonecraft — any blue-chip areas near public transport and close to amenities will always do well long-term.
“On the upper north shore, look along the train line in places like Lindfield for established blocks with a good track record.”
In the east, she suggests looking in older-style, smaller blocks in Darlinghurst, Paddington and Woollahra — “and boutique blocks in Bondi Beach and surrounds always do well.”
Soglanich is expecting more records to be broken at the top end of the market over 2023.
TRG principal and Luxe Listings star Gavin Rubinstein says pricing will be key this year.
“We are in a new world of pricing, the shift took place last year, and if vendors can get their head around the fact the market is reactive, a strong outcome can be achieved due to lack of choice,” Rubinstein says.
Alex Lyons, of Raine & Horne Double Bay, has already had a big sale this year.
Lyons sold 7 Bunyula Rd, Bellevue Hill, which other sources say fetched just under $10m.
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