A City of 2 Tales
Whilst the weather may be cooling down, the prices in some suburbs are heating up. Bronte in the Eastern Beaches of Sydney seems to have recorded a new record price. Whilst not quite official, the rumour mill is suggesting a sale in Tipper Avenue has sold for just over $29M, smashing the previous suburb record price of $25M. The property previously traded in 2019 for $16.8M. Yes folks, this is how you add to your wealth, trade in real estate in affluent suburbs. It’s no mystery.
Now if you think real estate in Australia is expensive, think about the $76M Bill Gate’s daughter shelled out for an apartment in New York City. If only my father had gotten into IT!
Back to the real world, sort of. Over at Mosman on the Lower North Shore a street record price was set in Shellbank Avenue for a direct waterfront property. Despite the original price tag of $23M, the property finally sold for $19.25M after nearly a year on the market.
Proof that price guides can be a bit deceptive is exemplified with the sale of a beachfront property at Vaucluse. The property was originally listed in February 2023 with a price guide of $18M and has reportedly sold in April for around $21M. That’s another street record, beating the previous street record of $10.5M.
Despite the rate rises, yet another suburb record price was set. In the not often mentioned suburb of Queens Park in the Eastern Suburbs of Sydney, $8.7M eclipsed the 2021 suburb record of $8.1M.
For those of you who still remember bopping to Wake Me Up Before You Go Go in the 1980’s, George Michael’s home at Palm Beach on the Northern Beaches of Sydney has reportedly sold for a record price for an oceanfront. The sale of about $13.5M beats the previous oceanfront record of $12M.
If you like your music a bit on the heavy side, the drummer from Australian band Parkway Drive has just listed his Byron Bay home for sale with a price guide of over $10M. Ben Gordon paid $2.45M for the property in 2019 and has since redesigned it. As Dire Straits once sang, “I shoulda learned to play the guitar, I shoulda learned to play them drums”.
So, it’s pretty clear that the top end of the market is still breathing a bit of fire and there is plenty of money around. That said, most cities - and especially Sydney - are likely to be a tale of two cities. Or is that, a city of two tales? There is no doubt that at the lower to middle price bracket, there are plenty of people and businesses feeling the strain of the interest rate rises. I suspect before the end of the year is out, we will see a bit of downsizing going on, as those with large mortgages find ways to keep their heads above water.
I dare say, a lot is going to happen between now and the end of the year. Low unemployment is currently the saving grace that is averting a large disaster. If the business sector starts shedding staff and the unemployment rate trickles up, then the recent property market rebound will have been an aberration.
If anyone can predict what the market will look like over the next 6 months, well, good luck. In one ear, I have people telling me how busy they are and in the other ear I hear how quiet others are. It’s a very mixed environment out there in the economy and property market. Stay tuned.