2017 was a good year for buying and selling property in Potts Point.
We saw a strong start last year, with plenty of buyers. Early on there was a hysteria about the market, with pent-up demand translating into a lot of heat and unprecedented buyer competition.
As the year progressed, the market began to cool. By August and September, some of the heat had gone. We noticed the number of buyers vying for each property dropped from an average of around five-to-eight per property to around one-to-three. It was still a healthy property market, but less intense than it had been.
This may have made it a little harder to get deals together but our results stayed consistent throughout the year. In fact, we actually had our biggest month ever in October, when we sold $48,995,000 worth of property.
So, even if we were no longer seeing the kind of hot auctions that were commonplace at the start of the year, sellers were still getting very good prices, and both buyers and sellers were in a good position going into 2018.
Potts Point will always be about lifestyle
We’ve been in real estate for some time and have sold property in all types of markets. We know that booms don’t last forever. For that reason, we’re comfortable spending time working through deals in detail and using our local knowledge to put the right property and buyers together.
One thing we know stays consistent through every market is that people always remain willing to pay a premium to gain the lifestyle benefits of Macleay Street and its surrounds. So, even when the overall market turns, Potts Point sellers can usually stay positive about their prospects of receiving a great price.
Potts Point also lends itself to off-market sales. Being a good real estate agent means being able to spot opportunities for buyers and sellers to come together. And, over 2017, just as in previous years, many of our sales have been off-market.
Some sales highlights from 2017
We sold a lot of good property over the past 12 months and can’t possibly include everything. But here are some of the highlights:
7/38 Macleay Street – $8.9M, a record rate per square meter. This 3 bedroom unit in The Dorchester was a stand out – a whole floor sub-penthouse with views both ways, from the heads to the bridge. The apartment included three car spaces and was in a modern architect designed building that includes a cigar and wine room. This amazing result shows that unique luxury properties are popular with downsizers and can command a premium price.
21/10 Wylde Street – $7.8M. This was one of only two luxurious penthouse apartments in one of Potts Point’s most desired buildings, created by well-known architects SJB, with renovated interiors by Arnoldlane. The result was one of the highest per square meter rates for the year.
9 & 10/2 Billyard Avenue – In March 2017, we sold two waterfront units in one line, for a total of $5.5 million. Situated in historic Cavendish Hall, an art deco block, the owner plans to combine the units together into one larger property, again reflecting the demand for penthouse style apartments in the area.
1201/81 Macleay Street – We sold this apartment in the Ikon building for $5M, when it sold 18 months ago for $3.2M – showing just how much capital growth the area has experienced.
What the prices say about Potts Point property
According to Corelogic, as of August 2017, the median sales price of units in Potts Point was $621,000. That compares with an overall Sydney median unit price of $860,000.
If it seems like a bargain, remember that Potts Point is a high-density suburb. According to the 2016 Census data, 87.7% of dwellings were flats or apartments. Of these, 12.4% of units had no bedrooms, 49.9% had one bedroom, and 28.3% had 2 bedrooms. Just 9.4% had 3 or more bedrooms.
That said, there really is an apartment for everyone in Potts Point and the property we’ve sold over the past year ranges from tiny studio crash pads through to high-spec penthouses.
So, while the luxury end of the market may be in high demand with downsizers and commanding record-breaking prices, Potts Point still has plenty of room for first home owners to get on the ladder – with smaller apartments offering a great lifestyle and a quick walk to work.
The crystal ball: What will 2018 hold for Potts Point real estate?
We’re not fortune tellers, but having been in the local area for so long, we know that with this kind of end to the year, we can expect the new year to start again with a vengeance.
The general pattern is that a lot of buyers have been looking for a long time and haven’t yet found what they’re after in a competitive market. A lot of them are still keen to purchase. This, coupled with new buyers who will make the decision to purchase over the break, means that we expect a strong start to 2018.