Yahoo Finance The invincible Sydney region defying the property downturn
Forecasts about the extent of the Australian property downturn keep getting revised lower and lower – and no city (bar Hobart) has been spared.
But not every suburb is following the downward trend.
There is one Sydney region which seems to be immune to the spiralling momentum: the Lower North Shore.
“The Lower North Shore has been a star performer, with more homes selling at auction than in any other locality, including the City & East, and the Northern Beaches,” said STRAND Property Group director Michael Ossitt.
He singled out the suburbs of Wollstonecraft, Waverton, Crows Nest, Cammeray, Neutral Bay, Cremorne and Mosman as star performers in auction success.
In fact, Ossitt said the property group’s study of Lower North Shore clearance rates shows it has tracked well above the Sydney result throughout 2018 and 2019 to date.
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What is so special about the Lower North Shore?
Ossitt singled out three key reasons why the Lower North Shore region had remained so resilient at a time when nearly all other markets are nosediving.
1. ‘Run to quality’
Seeing a softening housing market, property investors are snapping up top-notch homes for more affordable prices.“These suburbs are in a prime location and offer exceptional housing, so they’re attracting premium buyers,” Ossitt said.
2. Financially resilient buyers
Higher-end buyers are generally more immune to the struggles of securing finance such as tighter lending conditions thanks to strong asset bases and cash flow, Ossitt indicated.
3. Location, location, location
In property markets, there’s no beating location.
These suburbs are close to the city, well represented by lifestyle drivers and attractive to those middle-ring buyers who were looking to upgrade a year or two back and can now afford to come closer in, Ossitt explained.
Winners from the housing slump
“Savvy buyers and investors are seeing hot prospects in the Lower North Shore and are taking the chance now to get in while vendors are willing to negotiate,” Ossitt said.
Lower North Shore addresses have been typically resilient in the midst of downturns, he added.
“Buyers believe these resilient addresses have pretty much bottomed out and now is the time to take advantage of market conditions.”
Interested buyers are facing opportunities to “seize a great property at the bottom of this cycle” and enjoy the long-term value to come, he said.
And the property owners and sellers in these suburbs aren’t the only winners from the current housing slump, which could make Gen Y Aussies rich as they keep their eyes peeled for a bargain off the back of falling house prices, according to survey results from Finder.com.au.
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