Bustling enthusiasm has kicked off the new year, with confidence in the Sutherland Shire real estate market most definitely on the rise. Over the last quarter, the market has been buzzing with activity, seen through a surge in online engagement, heightened enquiries, and more prospective buyers attending open for inspections.
Sold in 16 days, 45 inspections,
13 contracts issued
Sold in 23 days, 195 inspections,
38 contracts issued
Sold in 8 days, 25 inspections,
24 contracts issued
Ben Pike, Director of Pulse Property, notes a distinct shift in urgency reminiscent of that experienced in late 2021 and early 2022.
“There’s definitely more confidence in the marketplace, and with the heightened activity in the market, we’re seeing a lot more competition for homes,” Ben shares. “My belief is that people believe that the interest rate cycle has hit its peak and will come back at some point. If and when rates do come back, prices will jump again.”
Predictions for the upcoming quarter echo the rhythm of Q1. Whilst more homes are expected to hit the market, a surge in demand will likely follow suit. “Whilst the market remains finely balanced, buyers can expect a wider array of options and more competition, particularly for free-standing family homes in the coveted $1.5m to $3.5m range,” Ben says.
Whilst unit movement has remained consistent over the last quarter, it’s a battleground for homes in this price bracket where buyers vie for their dream slice of suburban bliss.
The largest influence on this shift is the downsizing market. This is marked by fierce competition and savvy buyers who are acutely aware that they can find what they want with more stock on the market. Take, for instance, the recent sale of 2 Immarna Avenue, Lilli Pilli. A contemporary four-bedroom home on 854sqm in a great location with an inground pool and a price guide of $2.6m, sold before auction day for an impressive $3.35m.
Buyers over 65yrs don’t necessarily want to downsize, nor are they enticed by a more affordable property. They’re looking for lifestyle benefits rather than a price range, focusing on location and position to local conveniences.
“We’ve seen significant demand from this demographic seeking single-level homes close to shopping and leisure conveniences without the challenges that come with strata living or compromising for space in apartments or townhouse villas,” Ben says. “So, with a lack of single-level homes on the market, this property was appealing to many over-65s.”
Baby Boomers are, without doubt, the most aggressive type of buyer in the market right now. They are largely debt-free, flush with equity, and eager for lifestyle upgrades. They bring a level of confidence and have an eye for markets close to the beaches with restaurants and lifestyle access like Cronulla, Woolooware and Burraneer.
The Sutherland Shire’s appeal extends far beyond its borders. Depending on the price range, a significant segment of buyers (40-45%) hail from out-of-area locations like the Eastern Suburbs and Inner West. The key drawcard is not just the promise of a laid-back lifestyle and quality schooling; it’s the tantalising prospect of affordability, value for money, and an escape from the cramped confines of strata living.
“Buyers are seeing the appeal of getting out of strata properties and terraces, and they’re buying bigger homes with bigger and better yards, pools, more living space, and home office options.”
Auction clearance rates are notably on the upswing, with homes fetching prices above reserve amidst fierce bidding wars. This uptick in consumer sentiment, fueled by shifting perceptions of interest rates, is driving a newfound sense of urgency among buyers.
“We’re seeing more registrations, more active bidding, and the prices getting stronger and stronger week on week,” Ben notes.
“We’ve seen a significant shift, with more properties coming to market this quarter compared to the end of 2023. Supply across Sutherland Shire has remained stable overall; however, our office has seen an increase of 20% in listings year on year.”
Meanwhile, the rental market continues to show positive yields for investors, particularly for properties leased under $1,000 per week. Vacancies continue to remain low, with rental returns soaring by as much as 25% in some cases. It’s a landlord’s market, and those with savvy investments are reaping the rewards. Landlords with vacancies after the tenant’s notice have seen the most significant increase in return, with good growth seen more so in the one-to-two-bedroom range.
Some notable leases include:
- Two-bedroom apartment on Central Road, Miranda: Rental return increase of 25% from $650 per week to $810 per week
- Two-bedroom apartment on Pinnacle Street, Miranda: Rental return increase of 12% from $710 per week to $800 per week
- One-bedroom apartment on Dune Walk, Woolooware: Rental return increase of 12% from $650 per week to $730 per week
Real estate is always emotive in its lifecycle. There are always those expanding their families, getting married, or going their separate ways. With higher consumer confidence and the market starting to sell and sell quickly, buyers are encouraged to buy now or risk missing out. The Sutherland Shire property market is primed for growth, and with a community brimming with potential, buyers are realising there are more choices if they decide to sell.
Download your free report now for more insight into the value of your home or to find out if your property is achieving maximum rental returns. Alternatively, connect with our team to discuss your situation, whether you’re buying, selling, considering investing, or simply watching from the sidelines.