Spring is well and truly in full swing at Pulse, with our team’s August sales and leasing results considerably stronger compared to the last two years. Throughout the first half of 2023, we saw a number of investors strategically offloading properties, the knock-on effect was the opportunity for first-home buyers and new investors to enter the property market. Fast forward to now, with interest rates on hold for the fourth month in a row, our team is again seeing consumer confidence improving and a new sense of calm re-entering the market, creating a more stable property market.
The RBA’s decisions are creating a steadying force for homeowners and investors alike. With the Big 4 banks even predicting interest rate reductions at some point in FY24/FY25. Here’s hoping! This sentiment is reigniting both vendors and buyers, who were a little shy to make a move earlier this year. Our team is again having conversations with those clients now ready to upgrade and invest, making financial decisions with newfound confidence and continuing on their property journey.
Across the Sutherland Shire, the overarching trends are looking good. For homeowners, values are again on the increase: for example, in August 2023, the average property value was $1.406 million, compared with $1.218 million in FY22 and $1.340 million in FY21. (Source REA).
There’s also good news on the investor front for those holding property across the Sutherland Shire. With good attendance at open for inspections, vacancy rates are now sitting at record lows of just 1% our New Business Manager Katrina Bates confirming that “Properties priced in line with the market are being leased at the first open, typically that’s only 5 days on the market, a great result for our clients and in particular cash flow-conscious clients”.
For a closer look at the rental market here are a few recent examples: 5/2 Connels Road in Cronulla, this neat, light filled one bedroom apartment with parking, popular with couples and singles in their 20’s and 30’s, had 15 groups through on open day and received 9 applications. Leasing after the first inspection for $520 per week. Moving to larger properties fit for growing families was 3/36 Milburn Road, Gymea. Receiving 4 applications at the first open home leasing to a multi-generational family looking for a little more space. Across our vast portfolio of properties at Pulse, the average weekly rent is now sitting at $843 per week. Interestingly we are seeing solid seasonal demand at all ends of the market including the top end remaining particularly robust. For example, 12 Gunnamutta Road, Cronulla, a four-bed waterfront property, leased recently for $2,900 per week. More broadly, these are positive indicators for both investors and homeowners in the Sutherland Shire.
Despite a somewhat volatile market in the last few years, some homeowners have been able to realise value and capital growth. A recent example is 54 Woronora Crescent, Como this property’s value appreciated significantly within the relatively short 12 months that the vendors held it. This well-presented single level property, located in a quiet community drew broad market appeal from both up sizers and downsizers alike throughout the sales campaign. The vendors had completed only minor updates – by way of installing Solar Panels so the successful auction and sales campaign run by Lucas Pratt, Pulse Co founder left the vendors pleased, if not somewhat surprised, by the outcome of the sale given the relatively short hold time.
Another beautifully presented property expertly brought to market by Sales Agent Tracey Fenwick was 63 Premier Street, Gymea. The owners had lovingly created a home that centred on easy indoor/outdoor living. This 4-week Auction campaign received over 200 enquiries, saw 164 people come through the home, and 12 registered bidders on the day. The home was guided at $2 million throughout the campaign, needing however to be revised to $2.2 million in the week leading up to the auction due to strong pre-auction interest levels, selling on the day for $2,333,000.
Buying property, though, is typically not a quick flip for capital gain. It’s more often than not about finding a home that suits your family’s needs, lifestyle, and stage of life. One area worth exploring within the Sutherland Shire’s fringe are the suburbs of Engadine, Loftus, and Yarrawarrah. These neighbourhoods are experiencing considerable interest from both local and out-of-area buyers searching for free-standing homes with spacious backyards. A popular choice among families given the local village shopping centre, proximity to the national park and local beaches, and just one train stop away from the major commuter line connecting to both the CBD and Wollongong. These suburbs make an attractive entry point into the Sutherland Shire property market. By way of illustration, consider the recent sale of 53 Tobruk Avenue in Engadine. This beautiful, well-maintained family home showcases the value of the area. It’s worth noting that if this property were situated just two or three train stations closer to the beach, it could have easily commanded a significantly higher sale price, of several hundred thousand dollars.
While not in a boom phase, the Sutherland Shire market reflects a healthy and stable real estate environment. “It’s a good balanced market because there’s certainty with stabilized interest rates,” Lucas Pratt, Auctioneer at Pulse says. Furthermore, our in-house Mortgage Broker and partner, Tony Caine from GrowHome Loans, offers invaluable and timely advice for anyone coming off a fixed-term loan in the next few months. Tony says, “adjust your spending now, start acting like you’re already on the new rate to get ahead of the change so that you are well prepared ahead of time.”
There are sound opportunities for investors, buyers, and sellers throughout the Sutherland Shire. The right strategy, an experienced team, and a trusted relationship with your agent will be the backbone of a good campaign this spring.
For more insight into the value of your home or to find out if your investment property is achieving maximum rental returns, download your free property report now. Alternatively, connect with our team to discuss your situation, whether you are considering selling, buying, or investing in the Sutherland Shire.
- Information provided is not financial advice.