The Sutherland Shire property market remained resilient despite rising interest rates, increased cost of living and wavering consumer sentiment.
The first half of 2023 saw the Reserve Bank of Australia (RBA) continue to increase interest rates, besides one pause in April, which amounted to a cumulative 1.00% increase this year alone. That’s not insignificant to the back pocket of a million-dollar mortgage. Furthermore, the number of new properties in the Sutherland Shire coming to market in Q2 declined by 31% compared to the same period last year. Nonetheless, the local property market demonstrated unexpected grit in response.
Throughout Q2 our sales team sold 69 properties, averaging just 24 days on market. The Sutherland Shire Days on Market in comparison sitting at 31.6 days. The June median house price for Pulse holding steadfast at $1,507,000. Auction clearance rates are rising, and multiple buyers are showing interest in most properties. The buyers we are meeting are confident, and ready to make decisions with pre-approved finance.
Whilst the chillier weather is swaying media sentiment towards a cooler market, there are still heartening success stories to be found. Outstanding interest was garnered for 272 Box Road, Sylvania, a modest well-built family home on a flat block. This prompted the auction to be brought forward two weeks earlier than planned. At just 16 days on the market, the property attracted 103 potential buyers and saw 14 bidders. The hammer fell at an impressive $1,633,000, much to the vendor’s delight.
Then there were the exhausted vendors of 8 Crescent Road, Caringbah South, a beautifully designed contemporary 5-bedroom home. These vendors approached our team following three unsuccessful attempts to sell the property through three different agencies. Pulse relaunched the property marketing and tapped into our extensive buyer network. This resulted in 3 registered bidders on auction day, and a successfully negotiated sale in the 24 hours following the auction.
There’s no doubt that sentiment fluctuates, but the fundamental principles of supply and demand remain steadfast. So, while we may be seeing fewer properties coming to market overall, we believe buyer competition is steady and creating excellent opportunities for both parties involved.
From a location perspective, we’re finding buyers are less “suburb specific” and more focused on the price point. The Sutherland Shire lifestyle, schools, amenities, and access to the CBD remain a considerable attraction. Buyer flexibility around location has led to consideration of sister suburbs that offer more affordable entry price points. Kirrawee, Engadine, and Loftus are leafy suburbs offering highly comparable lifestyles, easy access to amenities and transport, and the overarching Sutherland Shire way of life.
Meanwhile, our Property Management team leased 55 properties over the last quarter and conducted rental reviews for 26% of our properties under management. Yet some landlords are proactively engaging in discussions with our team, so that they make timely and informed decisions when it comes to selling or holding their property assets.
Overall, the second quarter has been remarkably impressive, with a noticeable market uplift within April alone. As we eagerly await the arrival of the traditional Spring season, and with the recent interest rate announcement there is an optimistic expectation for a renewed surge in activity even before the winter frost has a chance to thaw. Despite the natural fluctuations in market sentiment, the demand for properties is anticipated to maintain a steady momentum throughout the latter half of 2023.
* Information provided is not financial advice.
* Data sourced from REA.