The property market in Potts Point and Eastern Sydney began 2020 with one of its strongest ever starts.
The median Sydney property price surged 4.6% in the quarter to February 2020, according to CoreLogic’s figures. That meant the median Sydney dwelling was worth almost 11% more than at the same time the previous year. Impressive in any market, but particularly good considering the slow start we had in 2019.
What was noticeable here in the inner Eastern suburbs was the level of confidence in the market. Auction clearance rates were high – exceeding 80% in the first week of March – and sellers were looking to take advantage of the growing level of demand.
Even though the summer holiday period is usually considered a quiet one in real estate, Potts Point stock levels over January were 50% higher from December through to February 2020 than they were halfway through 2019, according to realestate.com.au’s figures.
And these strong conditions were running through every segment of our market – from entry level to luxury properties.
The impact of coronavirus
Clearly, in the past couple of weeks, conditions have changed rapidly, as both Sydney and the world come to terms with the impact of coronavirus. The property market likes certainty and right now we’re waiting to see exactly how long the virus will last and what its full impact will be. Our area is famous for its lifestyle, eating and drinking options, but, for the moment, these are closed or restricted to takeaway orders.
The restrictions have also impacted the way we can market and sell property, with open homes now off-limits to more than one person at a time and in-person auctions also suspended. But we’re still working, remotely, and doing our best to make sure everyone around us stays safe and well.
What to expect from the new market conditions
We’re all in uncharted territory right now. However, we expect a few important things to happen in terms of real estate.
First, it’s clear that market activity will decrease so long as we’re in some form of shut down. People will be less inclined to sell their home in the midst of the current uncertainty. This reduced activity may slow the market down a bit.
Second, more properties may be sold by private treaty rather than auction. But we’re also likely to see technology become a more important part of auctions in a post-Covid 19 property market, with bidders choosing to take part online.
Third, in the long-term property in the inner-Eastern suburbs of Sydney, like Potts Point, will remain a comparatively sound investment, no matter what happens to the economy.
Median Property Price
According to realestate.com.au, the median property prices in our area at the end of the February 2020 were:
- Potts Point units $752,000
- Elizabeth Bay units $925,000
- Woolloomooloo units $1,200,000
- Rushcutters Bay units $832,500
- Darlinghurst units: $950,000; and houses: $1,722,500
903/13-15 Bayswater Road is a house-sized penthouse set atop the ‘Hampton’ building. With panoramic views of the harbour and CBD, the 569sqm package includes 244sqm of indoor/outdoor rooftop living space. We recently covered this special property in an article here.
111/95 Elizabeth Bay Road is an expansive three-bedroom apartment in the harbourside Toft Monks building showcasing sleek, modern living against the backdrop of a stunning Sydney Harbour panorama.
If you’re looking to buy or sell in Potts Point or Sydney’s east contact my team today.