2019 has been a flat market across wider Sydney, with prices falling from their peaks a couple of years ago.
That said, data from Domain shows that over the longer term, owners who have held Sydney property for five or more years have seen solid growth. Potts Point is no exception to this trend.
According to realestate.com.au, median unit prices sat at $580,000 in 2014, and are currently $740,000 halfway through 2019 – a capital gain of more than 27.5% in total or around five percent year-on-year.
We’ve also had some standout sales over the past 12 months in Potts Point, even in the face of flatter conditions.
Meanwhile, nearby Darling Point topped Domain’s list of unit price increases with growth of 6.8% year-on-year and 97.5% change over five years, hitting a median price of $2,350,000 in March 2019.
According to Corelogic, Sydney’s auction clearance rate tracked above 60 per cent for most of June and, by the end of the month, the auction clearance rate in the Eastern Suburbs sat at 71.8%. Although, compared to the same time in 2018, volumes are down with just 289 reported auctions across the whole city.
The impact of the election
2019 has been a year of two elections and May’s federal election has become something of a marker in this year’s property market. In the lead up to the poll on 18 May, both buyers and sellers were sitting back, waiting and watching.
On the Monday after the election, the phone started ringing and we observed more buyers out and about, looking to get on with it. Everything started moving again and property has again started selling across a wide cross-section of the market.
We believe this positivity means we’ve passed the bottom of the market in this area and we expect to see muted growth in property values over the remainder of the year.
What is driving the market?
The good news is that there are lots of buyers now coming into the market, looking to make a move in Potts Point.
We’re seeing many young professionals active in the $1 million to $3 million range, with some first home buyers sprinkled into the mix as well. Meanwhile, downsizers continue to drive the market over $3 million.
And we’re also starting to see more activity from investors, who have been buoyed by less restrictive lending conditions and the certainty that the current CGT and negative gearing regimes will remain in place given the return of the Morrison government.
One of the defining features of the winter market is a shortage of stock, which is keeping competition high and prices stable. This means home-hunters need to be patient and wait for the right property to come up.
The stock shortage is affecting sellers too. They’re becoming more reticent and less willing to go to market as they can’t find a property that they want to move into.
The good news on this front is that we expect to see more stock come on the market as we get closer to Spring. Once this happens, more sellers will choose to make a move, and more stock will come onto the market, giving buyers greater choice.
Median Property Price
According to realestate.com.au, the median property prices in our area at the end of the 2019 financial year are:
- Potts Point units $740,000
- Elizabeth Bay units $1,100,000
- Woolloomooloo units $1,000,000
- Rushcutters Bay units $620,000
Despite the flatter market conditions, we’ve experienced good sales this year from about $900,000 right up into the $14-$16 million range, with some particularly strong results since the election.
In fact, over a 60 day period spanning May to July, we sold approximately $70 million worth of property, including:
- 61-63 Macleay Street, Potts Point $Confidential
- 12/12 Onslow Avenue, Elizabeth Bay $9,750,000
- 1505/81 Macleay Street, Potts Point $2,650,000
- 1602/7 Rockwall Crescent, Potts Point $Confidential
- 82 Victoria Street, Potts Point $4,700,000
- 69 Anglesea Street, Bondi $2,400,000
- 12/91-93 Macleay, Potts Point $900,000
- 23/17 Wylde Street, Potts Point $1,300,000
- 908/81 Macleay Street, Potts Point $1,575,000
- 20/18 Macleay Street, Potts Point $Confidential
- Level 14/81 Macleay Street, Potts Point $2,800,000
- 309/88 Crown Street, Woolloomooloo $1,500,000
- 22/8 Greenknowe Avenue, Elizabeth Bay $1,950,000
502/37 Bayswater Road is a fantastic three-bedroom apartment on the fifth floor of the Woods Bagot designed Hensley building. It’s up for auction on 1 August 2019.
71/6 Greenknowe Avenue is a brand new two-level penthouse in the airspace – on the roof – of the tightly held Soho building. This Alexandra Kidd designed three-bedroom apartment has stunning CBD views.
If you’re looking to buy or sell in Potts Point contact my team today.