Having specialised in the prestige property market for over a decade, I’ve learnt that properties valued above $5 million in Sydney, tend to move differently to the wider market. We’ve been lucky in Mosman as luxury homes, especially those with harbour views, have bucked property downturns in recent years.
The tightly held nature of Mosman property and the fact that once you become a Mosmanite it becomes near impossible to live anywhere else are seemingly our recipes for success. Even those that do leave for an overseas career opportunity tend to bounce back and resettle in Mosman on their return to Australia.
Really there is no better place to live than on Sydney’s lower north shore. But maybe we are biased.
Overseas home buyer interest continues
Sydney is generally considered a safe and secure place to purchase property compared to many other global cities. With the Australian dollar falling significantly, interest from overseas purchasers and ex-pats has not waned.
Lessons from the Royal Banking Commission downturn
Looking back at the very recent credit crisis in line with the Financial Services Royal Banking Commission, from mid-2017 and mid-2019 the prestige market was generally immune to the what was an Australia wide real estate market decline. This was due in part to luxury property purchasers being less susceptible to tighter lending policies.
Demand for $5 million-plus properties remains
As an agency that deals predominately with prestige real estate sales, we are currently seeing significant demand from buyers in the $5 million to $7 million price bracket. Mosman sellers remain in a fortunate position and can even consider selling off-market quite successfully.
Silent, off-market sales are still strong
We have more than a dozen properties for sale in and around Mosman at present, with many of them being sold without being publicly advertised. Instead, we’re able to promote new to market homes through our exclusive buyer database and our broader network of relationships with local and international property buyers. We call these silent sales – if you’d like to find out about this approach get in touch with me directly for a private discussion.
Feedback from May’s RBA members meeting
1. Lockdown restrictions
The RBA meeting in May reported that social distancing restrictions on home inspections and in-person auctions, as well as heightened uncertainty about the future, had significantly reduced turnover in the established housing market. This is true of many parts of Sydney, but less so of Mosman and surrounding suburbs.
2. Returning ex-pats
RBA members also discussed the effect of a possible increase in the number of people moving back home or living in larger households for financial reasons. Australia alongside New Zealand’s success in curbing the spread of the Coronavirus is seemingly the envy of the world, making our antipodean lands more attractive and reinforcing that we truly do live in ‘the land of milk and honey’.
3. Rental housing
When the market has been hit most is with the supply of rental housing. More properties are now advertised for lease across Sydney, especially in hot spots such as Bondi where beachside apartments and houses had been offered as short-term accommodation through sites such as Airbnb, Stayz and HomeAway. With the travel industry being one of the hardest-hit, many rentals are returning to long-term leasing – but again this is not a big issue for Mosman and surrounds.
4. Lower interest rates
Lower interest payments have already provided a small boost to the disposable incomes of households with mortgages and other debt. More than a dozen lenders, including many of the big institutional banks, are offering cash incentives in a bid to entice new customers from competitors with refinanced loans.
5. Unemployment rates
With the real estate market and mortgage lending criteria interlinked with employment, the RBA anticipates a further decline in rent inflation throughout 2020. On the whole, we are not worried about a price drop in Mosman property. Most the luxury houses and prestige apartments sold under the De Brennan banner are unique and one of a kind, so it really comes down to the skill of negotiation rather than market conditions.
If you’re thinking of selling your Mosman home, get in touch for a no-obligation discussion about the market and your goals.
