North Shore bargains, March 2003

North Shore Bargains – March 2003

The north shore is Sydney’s Mayfair, according to Australian Property Monitor’s Louis Christopher.
“It’s a blue chip region. Sure the city and the east are prestigious but the north shore is blue chip and it’s always going to retain its value compared to other regions in Sydney,” he says.
“If people could afford it, there are many people who would like to live there. That doesn’t mean to say prices cannot fall, but relative to other parts of Sydney it’s a pretty strong area.”
But – like many pockets across Sydney – price growth seems to be at a stall in some of the most prestigious north shore suburbs and has even gone backwards in the more expensive suburbs .
Prices in Longueville fell by 8.5 per cent in 2003, according to Australian Property Monitors and prestige suburbs like Mosman and Neutral Bay had a dramatic drop in auction clearance rates late last year.
So is this time a buying opportunity - a chance to secure good quality property in a premium location?
Macquarie Bank’s Rod Cornish says there are no undervalued pockets of property on the north shore – but there might be some buying opportunities for people prepared to pay good prices.
“You might be able to get something at a better price this year than it could be bought for last year,” he says.
A slower property market allows buyers to be choosier, selecting higher quality houses in better locations than a booming market allows.

MOSMAN CHEAPIES

Mosman is one of Sydney’s most expensive suburbs with a median price of $1.5 million and has had good long term average growth of 10.7 per cent a year since 1993, according to Australian Property Monitors
Richardson & Wrench Mosman’s Robert Simeon says you can’t buy a semi for less than $800,000 or a freestanding house for less than $1.2 million.
When it comes to “bargains” in Mosman, the prices are all relatively high but McGrath’s Piers van Hamburg has Mosman’s cheapest semi on the market this weekend.
The derelict two-bedroom Federation semi at the quiet end of Macpherson St has council approval for a two-storey three-bedroom house and is for sale by negotiation between $680,000 and $720,000.
It was withdrawn before a planned February 21 auction – no doubt due to a lack of interest – and is looking for a buyer.
“This is the cheapest semi on the lower north shore, especially since it isn’t on a main road,” van Hamburg says.
The property was bought for $675,000 in 2003 when stamp duty would have cost around $25,000. If the semi sells for under $700,000, then buyers are definitely getting a better bargain than the sellers got when they bought in 2003.
The next “cheap” properties to come on the market in Mosman are eight former Defence houses in Markham Close which are, ahem, butt ugly and will probably sell for land value.
Colliers International’s Peter Chittenden, who is marketing the houses which have land sizes between 500 square metres and 700 square metres, says they will sell for around $1.5 million.
“Some might sell for a bit less but they will appeal to people who want the exclusivity of Mosman for that $1.5 million mark,” he says.
The eight houses will go to auction on April 28, and there are another 11 properties which will sell later this year or early next year.

THE UPPER NORTH SHORE

On the upper north shore, Luschwitz Real Estate’s Mark Blake says there are bargains in the $2 million to $3 million range.
“Up here, you get a fantastic property in that price range that is on a huge parcel of land and it’s more like an estate than a house,” he says.
“You can get a much better house in that price range around Pymble or Turramurra than you can in the east or the northern beaches.”
The upper north shore market has had fantastic growth in the last two years, but Blake says the market for houses around the million-dollar mark has softened since last year’s interest rate rises.
“What you get around here is professional middle class families who have big mortgages and want to get that mortgage down before they send the kids to private schools,” he says.
But does that mean prices have come back?
None of the agents are prepared to admit that prices may fall and the real story is that some houses may slide in value and some may increase, but prices for premium properties in a good position will probably remain stable as long as interest rates remain stable.
The real mark of quality for a house in any of the upper north shore prestige suburbs – Pymble, Turramurra, Wahroonga, Warrawee, Killara or Lindfield – is to be within 10 minutes walk of the railway and on the eastern side of the line.
“If we didn’t have private schools or a train line, no-one would want to live here,” Blake says.
Blake suggests that West Pymble and West Lindfield will have the lowest-priced properties in the prestige areas.
Keith Soames real estate’s Stuart Morris has sold a few cheapies in Wahroonga this year, including a cute 1930s weatherboard on 707 square metres of land for just under the asking price of $645,000.
“I sold one in Ingram Rd for the high $500,000s, so they are around,” he says.
“Yes, there has been a levelling of the market but it’s hard to say if that will mean more cheaper properties will come on the market – I’d need a crystal ball to answer that properly.”
Morris says buyers need at least $600,000 to buy on the fringes of the premium upper north shore suburbs.
“Once you get close to the railway, it gets very dear and you can pay $2 million or $3 million for something on a lot of land,” he says.

LANE COVE AND THE RIVER

Northwood and Longueville are Sydney’s most expensive north shore suburbs because of the abundance of large homes – many with views – on big blocks of land.
But Longueville agent, Brent Courtney of McGrath, says the reality is that prices in the prestige area have come back to what they were at the beginning of 2003.
“Things are taking a lot longer to sell,” he says. “The interest really tapered away at the end of last year when rates went up.”
Lane Cove, which has more lower priced homes, is holding up well with local agents saying there are bargains to be had in the million-dollar plus range.
Hamilton & Co’s Jocelyn Gregory says the $900,000 plus market has softened since late last year.
“We’ve had offers that I have felt in my heart are too low and that million dollar and up bracket has definitely come back in price,” she says.
Cheaper properties in Lane Cove start in the high $600,000s and low $700,000 price range.
“We just sold a good house on the corner of Mowbray Rd and Centennial Ave for $770,000 and that really is the bottom of the market around here,” she says.
The premium areas of Lane Cove are near Riverview, the “Greek avenues” near the shops and the Osborne Park area.
“The cheaper properties are holding up well because they are the access point to the suburb so they are still desirable,” she says.

JUST A WORD ON BARGAINS

As Louis Christopher points out, what is a bargain today could easily be a better bargain in six months time.
“People have to remember that if you get something cheaply today, those same factors that made it cheap could make it even cheaper in another six months time,” he says.
The tried and true method of buying property – position, potential and price – will always hold true regardless of a rising and falling market.
Rod Cornish says properties in the more affordable price range of the prestige locations will hold up well, especially in the $600,000 to $800,000 price range.
“People will always want premium locations so there will be demand there – basically, it comes down to how affordable it really is for people,” he says.
“The only properties that will outperform a slow Sydney market are the properties that a greater number of people can afford.”
Cornish says owner occupiers who plan to live in a house in the long term – five to ten years – cannot really go wrong by selecting a good location.
“I would say there are no more opportunities on the north shore for people to buy and sell within a year or two and make quick money,” he says.

Breakout

Melanie and Steve Hodges moved from Petersham to Pymble on the upper north shore in 2001, swapping their inner city pad for a leafier, larger family home.
“We really liked this area because it has good access to the city with parking at Gordon station and trains every 15 minutes,” Melanie says.
“We wanted to go somewhere which would be a nice place for kids to grow up.”
The couple paid $630,000 for their four-bedroom house on more than 900 square metres of land three years ago.
“We were lucky because we sold our place at Petersham when it was on a high and bought in at Pymble after it had had negative growth,” she says.
Since buying on the upper north shore, the couple have had two children and spent 18 months working in Canberra.
“We just had our place valued, and it’s worth between $950,000 and $1.1 million,” she says. “I think people realise this area is a great place to bring up a family. There are good public schools and private schools around here.”
Melanie says the large blocks of land and the leafy aspect mean people need to be prepared for maintenance.
“It costs us at least $50 a week to have the pool cleaned, the lawns mowed and the garden look after.”


contact me alex may \| books \| property \| renovation \| magazine stories
North Shore Bargains – March 2003 The north shore is Sydney’s Mayfair, according to Australian Property Monitor’s Louis Christopher. “It’s a blue chip region. Sure the city and the east are prestigious but the north shore is blue chip and it’s always going to retain its value compared to other regions in Sydney,” he says. “If people could afford it, there are many people who would like to live there. That doesn’t mean to say prices cannot fall, but relative to other parts of Sydney it’s a pretty strong area.” But – like many pockets across Sydney – price growth seems to be at a stall in some of the most prestigious north shore suburbs and has even gone backwards in the more expensive suburbs . Prices in Longueville fell by 8.5 per cent in 2003, according to Australian Property Monitors and prestige suburbs like Mosman and Neutral Bay had a dramatic drop in auction clearance rates late last year. So is this time a buying opportunity - a chance to secure good quality property in a premium location? Macquarie Bank’s Rod Cornish says there are no undervalued pockets of property on the north shore – but there might be some buying opportunities for people prepared to pay good prices. “You might be able to get something at a better price this year than it could be bought for last year,” he says. A slower property market allows buyers to be choosier, selecting higher quality houses in better locations than a booming market allows. MOSMAN CHEAPIES Mosman is one of Sydney’s most expensive suburbs with a median price of $1.5 million and has had good long term average growth of 10.7 per cent a year since 1993, according to Australian Property Monitors Richardson & Wrench Mosman’s Robert Simeon says you can’t buy a semi for less than $800,000 or a freestanding house for less than $1.2 million. When it comes to “bargains” in Mosman, the prices are all relatively high but McGrath’s Piers van Hamburg has Mosman’s cheapest semi on the market this weekend. The derelict two-bedroom Federation semi at the quiet end of Macpherson St has council approval for a two-storey three-bedroom house and is for sale by negotiation between $680,000 and $720,000. It was withdrawn before a planned February 21 auction – no doubt due to a lack of interest – and is looking for a buyer. “This is the cheapest semi on the lower north shore, especially since it isn’t on a main road,” van Hamburg says. The property was bought for $675,000 in 2003 when stamp duty would have cost around $25,000. If the semi sells for under $700,000, then buyers are definitely getting a better bargain than the sellers got when they bought in 2003. The next “cheap” properties to come on the market in Mosman are eight former Defence houses in Markham Close which are, ahem, butt ugly and will probably sell for land value. Colliers International’s Peter Chittenden, who is marketing the houses which have land sizes between 500 square metres and 700 square metres, says they will sell for around $1.5 million. “Some might sell for a bit less but they will appeal to people who want the exclusivity of Mosman for that $1.5 million mark,” he says. The eight houses will go to auction on April 28, and there are another 11 properties which will sell later this year or early next year. THE UPPER NORTH SHORE On the upper north shore, Luschwitz Real Estate’s Mark Blake says there are bargains in the $2 million to $3 million range. “Up here, you get a fantastic property in that price range that is on a huge parcel of land and it’s more like an estate than a house,” he says. “You can get a much better house in that price range around Pymble or Turramurra than you can in the east or the northern beaches.” The upper north shore market has had fantastic growth in the last two years, but Blake says the market for houses around the million-dollar mark has softened since last year’s interest rate rises. “What you get around here is professional middle class families who have big mortgages and want to get that mortgage down before they send the kids to private schools,” he says. But does that mean prices have come back? None of the agents are prepared to admit that prices may fall and the real story is that some houses may slide in value and some may increase, but prices for premium properties in a good position will probably remain stable as long as interest rates remain stable. The real mark of quality for a house in any of the upper north shore prestige suburbs – Pymble, Turramurra, Wahroonga, Warrawee, Killara or Lindfield – is to be within 10 minutes walk of the railway and on the eastern side of the line. “If we didn’t have private schools or a train line, no-one would want to live here,” Blake says. Blake suggests that West Pymble and West Lindfield will have the lowest-priced properties in the prestige areas. Keith Soames real estate’s Stuart Morris has sold a few cheapies in Wahroonga this year, including a cute 1930s weatherboard on 707 square metres of land for just under the asking price of $645,000. “I sold one in Ingram Rd for the high $500,000s, so they are around,” he says. “Yes, there has been a levelling of the market but it’s hard to say if that will mean more cheaper properties will come on the market – I’d need a crystal ball to answer that properly.” Morris says buyers need at least $600,000 to buy on the fringes of the premium upper north shore suburbs. “Once you get close to the railway, it gets very dear and you can pay $2 million or $3 million for something on a lot of land,” he says. LANE COVE AND THE RIVER Northwood and Longueville are Sydney’s most expensive north shore suburbs because of the abundance of large homes – many with views – on big blocks of land. But Longueville agent, Brent Courtney of McGrath, says the reality is that prices in the prestige area have come back to what they were at the beginning of 2003. “Things are taking a lot longer to sell,” he says. “The interest really tapered away at the end of last year when rates went up.” Lane Cove, which has more lower priced homes, is holding up well with local agents saying there are bargains to be had in the million-dollar plus range. Hamilton & Co’s Jocelyn Gregory says the $900,000 plus market has softened since late last year. “We’ve had offers that I have felt in my heart are too low and that million dollar and up bracket has definitely come back in price,” she says. Cheaper properties in Lane Cove start in the high $600,000s and low $700,000 price range. “We just sold a good house on the corner of Mowbray Rd and Centennial Ave for $770,000 and that really is the bottom of the market around here,” she says. The premium areas of Lane Cove are near Riverview, the “Greek avenues” near the shops and the Osborne Park area. “The cheaper properties are holding up well because they are the access point to the suburb so they are still desirable,” she says. JUST A WORD ON BARGAINS As Louis Christopher points out, what is a bargain today could easily be a better bargain in six months time. “People have to remember that if you get something cheaply today, those same factors that made it cheap could make it even cheaper in another six months time,” he says. The tried and true method of buying property – position, potential and price – will always hold true regardless of a rising and falling market. Rod Cornish says properties in the more affordable price range of the prestige locations will hold up well, especially in the $600,000 to $800,000 price range. “People will always want premium locations so there will be demand there – basically, it comes down to how affordable it really is for people,” he says. “The only properties that will outperform a slow Sydney market are the properties that a greater number of people can afford.” Cornish says owner occupiers who plan to live in a house in the long term – five to ten years – cannot really go wrong by selecting a good location. “I would say there are no more opportunities on the north shore for people to buy and sell within a year or two and make quick money,” he says. Breakout Melanie and Steve Hodges moved from Petersham to Pymble on the upper north shore in 2001, swapping their inner city pad for a leafier, larger family home. “We really liked this area because it has good access to the city with parking at Gordon station and trains every 15 minutes,” Melanie says. “We wanted to go somewhere which would be a nice place for kids to grow up.” The couple paid $630,000 for their four-bedroom house on more than 900 square metres of land three years ago. “We were lucky because we sold our place at Petersham when it was on a high and bought in at Pymble after it had had negative growth,” she says. Since buying on the upper north shore, the couple have had two children and spent 18 months working in Canberra. “We just had our place valued, and it’s worth between $950,000 and $1.1 million,” she says. “I think people realise this area is a great place to bring up a family. There are good public schools and private schools around here.” Melanie says the large blocks of land and the leafy aspect mean people need to be prepared for maintenance. “It costs us at least $50 a week to have the pool cleaned, the lawns mowed and the garden look after.”