Atlas | Market Insights Summer 2022 by LJ Hooker Group

SUMMER 2022

MARKET INSIGHTS

SYDNEY

A note from Mathew Tiller HEAD OF RESEARCH

LJ HOOKER GROUP people have found they no longer need to be within easy reach of the city. This has seen many make a sea-change or tree-change to popular regions such as the mid-north coast of New South Wales and South-East Queensland. Agents in our Brisbane office continue to report strong activity from buyers wanting to move from north from Sydney and Melbourne.

hrough all the recent unprecedented challenges, one thing has remained constant across Australia. Real estate. Whether it is first home buyers getting the keys to a new home, investors looking for a safe place to park their money, or a prestige property enthusiast looking for that perfect trophy home. Reports from our agents, in Sydney and Brisbane, about elevated enquiry levels, strong sales activity and robust price growth, prove that Aussies’ love affair with real estate remains solid.

And this isn’t just talking the market up – the data backs it up. There have been plenty of new trends that have emerged as our lifestyles and work arrangements have changed. Scores of people have swapped long hours in city offices for more flexible work arrangements and this trend has driven a desire for more space, more features and even a move out of the city. The tyranny of distance has disappeared for those that have shifted to work from home and many

Interest rates have been a key driver behind the recent strong levels of buyer activity, experienced across regional and metropolitan property markets. Mortgages have never been cheaper and when combined with strong median house price growth has allowed many homeowners to capitalise on the large pool of equity in their home. This has in turn many to renovate, make their first foray into property investment and even buy a holiday home. When it comes to interest rates, you would be hard-pressed to go to a dinner party these days where the subject doesn’t come up. Everyone is talking about whether there will be an interest rate rise this year, or even more than one. And how the change will affect property markets. Many notable economists are now forecasting that the official cash rate will increase as early as the second half of this year. This change has been driven by the recent strength of the economy during the final quarter of 2021, when Australians adjusted to the easing of restrictions and businesses began re-open.

There is no doubt an increase in interest rates will dampen buyer demand with higher rates placing additional pressure on household budgets, reducing borrowing capacity and making new mortgages less affordable. But while the overall strength of demand is expected to soften, there are many regions, suburbs and properties which will continue to see prices grow, particularly in prestige pockets of Sydney. Owners in the higher-priced suburbs tend to be less affected by rising rates because they are generally less reliant on mortgages and have incomes well above the national average. Well positioned and high-quality properties in soughtafter areas will also continue to see buyer demand remain in place and price growth continue. In addition, any rate rise is also likely to come at a time when international and state borders are open, the economy has strengthened, and Australians have adjusted to a return to pre-pandemic freedoms and can once again move around the country with relative ease. In addition, the opening of international boarders will drive higher enquiry for Australian property from overseas buyers and retuning expats. These buyers tend to be attracted to newly built luxurious apartment buildings within capital cities as well as prestigious suburban markets. This confidence is expected to be reflected in a strong, but perhaps more stable market than we saw in the second half of 2021. Which makes it both a great time to sell and a great time to buy.

Lower North Shore

he final month of summer this year has set a solid pace for the Lower North Shore’s prestige market. Lower North Shore office agent Jacqui Wansey is a member of ‘The Michael Coombs Team,’ headed by high profile agent and Atlas founding partner Michael Coombs. In just 10 days in February, they racked up about $90 million in sales. That’s $9 million a day, $375,000 an hour and $6,250 per minute. And it came off the back of an exceptional run of $120 million worth of sales in November last year.

“The prestige market is really strong and will continue to remain that way if the property is priced, marketed and sold correctly,” Jacqui says. “Buyers are very active in the Lower North Shore, and we are seeing them compete very strongly to secure what they want.” The run of sales was a bit late for the season, although Jacqui says the market took a break over ChristmasNew Year and this extended for a few weeks after that. “There was a lot of buyer fatigue in the lead-up to Christmas,” she says. “People were tired, they needed a break and to be able to take that holiday many

haven’t been able to take in a long time. We were also particularly aware of the market settling back into a more normal seasonal rhythm.” Among the recent highlights of the $90 million bonanza was the hush-hush, off-market sale of a palatial trophy home in Northbridge. This five-bedroom mansion has its own private deep waterfrontage accessed by an inclinator and views across Middle Harbour. Location and views were not the only standout features. The home, designed by Corben Architects, includes a five-person lift, gas-heated swimming pool, five bathrooms, a luxury kitchen with Calacatta bench, Carrara marble master ensuite and guest suite. “It’s a stunning property,” says Jacqui. “We had quite a few buyers interested in it before we were going to take it to market.” “It was an exceptional result, especially when you consider the Mosman residential record is $25 million,” she says. “It shows the strength of the market at that top end. It is still affected by low stock, and this is helping achieve these fantastic results.”

13A Elfrida Street Mosman

Other recent sales standouts include 34 Cowdroy Avenue Cammeray, 18 Balmoral Avenue Mosman, 13A Elfrida Street Mosman and 106 Raglan Street Mosman. All prices have been confidential but when you consider them in the context of $90 million in 10 days, it’s safe to say they were impressive.

301/3 East Crescent Street McMahons Point

The plan was to bring the home to market, but buyers had other ideas. Within two weeks they had taken “a few offers” and secured a buyer. The sale price has not been disclosed but is believed to be one of the highest sales on the north shore to date. – Jacqui Wansey

Lower North Shore

7 Laura Street Seaforth

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7 Laura Street Seaforth

Fellow Lower North Shore agent Shelley McShane says one of the emerging trends for Lower North Shore buyers is the interest in prestige properties across the harbour (and the Spit Bridge), particularly in suburbs like Seaforth and Clontarf. These suburbs, located on the northern beaches’ side of the bridge, have plenty of luxury waterfront homes, large blocks, and spectacular views. “A lot of our clients are looking to Seaforth and Clontarf – they are seeing it’s an up-and-coming suburb and it offers excellent value, especially when compared with prices of comparable properties in Mosman,” Shelley says.

The Michael Coombs Team sale of an architectural waterfront masterpiece at 7 Laura Street Seaforth in late November, has stirred up more interest in the suburb. The five-bedroom, deep waterfrontage had a guide of $17 million and is believed to have sold around that, smashing the suburb’s previous residential sale record by more than $4 million.

“Everyone came into the year well rested after what was a massive year in real estate,” he said.

Jacqui says the Seaforth market is proving a bonus for buyers given the lack of prestige house stock on the Lower North Shore.

“But there are also buyers who see security in property and are still determined to buy. The family house market - $4 million up to $10 million is particularly popular right now.”

Stock levels will taper off mid-year but Atlas are very strong locally, nationally and internationally and believe the market will continue to be steady. Colleague Nick Gittoes agrees, He says the conflict in Ukraine, a Federal Election, Covid, and rising petrol costs might be unsettling, but so far, they have not put a dampener on market activity in the Lower North Shore.

The next 12 months may be a bit up and down given the current global climate, however supply and demand will still continue to drive good properties. – Jacqui Wansey

“Post-Australia Day a lot of new stock hit the market but most of that was snapped up pretty quickly. There will be some buyers who are now sitting back to see what’s going to happen with interest rates and the election and everything else that is going on.

And the local buyers are facing some stiff competition from out-of-area buyers, particularly those coming from Sydney’s eastern suburbs. “They are seeing amazing value over here,” Nick says. “Instead of paying $60 million for a beautiful house with views in somewhere like Vaucluse, they can get a similar thing in Mosman for around $20 million.”

Jacqui Wansey Atlas Lower North Shore The Michael Coombs Team

Lower North Shore

here was a real rush to the finish before Christmas as buyers set themselves a deadline to secure something before the end of the year so they could start 2022 with a new home in the bag. There were vendors wanting to sell and buy in the same transaction, and there was a lot of positivity in the market, says Nicholas Christou, of Atlas’s Lower North Shore office. “People wanted to make the most of lower interest rates and two years of Covid uncertainty, and upgrade to something better with a focus on lifestyle,” he says.

83 Bay Street Mosman

The activity translated into some outstanding results for Nicholas in late 2021. No. 83 Bay Street, Mosman, as stunning six-bedroom house set over three levels, came to market in November. Following a massive buyer response, the home sold in just 11 days. CoreLogic records show the last time the property traded was in May, 1993, when it sold for $769,500. Another highlight from late 2021 was the sale of 6/1-5 Bydown Street, Neutral Bay. Nicholas said this was an

Balmoral Beach

unusual, two-level, two-bedroom apartment that presented more like a townhouse that was tucked away from the street with private access, a northerly aspect, and a massive floorplan. There were plenty of buyers chasing the home, and about eight bidders lined up at the auction. The apartment sold under the hammer for an undisclosed sum, although Mr Christou hinted it was more than $1.8 million. He said apartments in this complex rarely come up for sale. This one last traded in December 2011 for $775,000.

updated, offering multiple living spaces, a tennis court, and luscious gardens. Occupying one of Lane Cove’s largest landholdings of 1,587sqm, the property is within walking distance of village shops, cafes, and buses straight to the Sydney CBD. This home sold under the hammer for $5.75 million, which puts it in the top five all-time sale prices for Lane Cove. It has also smashed the residential street record by more than $2 million. This record was set in February 2021 with the sale of No. 42 for $3.5 million.

“It was a complex record,” he said. “The results were far above the agents’ and owners’ expectation. The final two bidders that were left to fight it out just both really wanted it.”

“Lane Cove was a standout suburb in 2021, with three sales of $3 million or above,” he said. “I think in many respects this suburb is still undervalued and something of a secret for buyers in general. It’s definitely one to watch this year.”

It’s a bit further from the traditional lower north shore landscape, but another highlight for Nicholas was the sale of one of Lane Cove’s biggest properties to come to market in many years. The 1920s farmers cottage at 58 Phoenix Street had been has been meticulously

Nicholas said there was definitely a buzz to the market at the end of 2021 and that’s continued into 2022, although the buyer pool in the first month of the year has diluted slightly.

Lower North Shore

“People have taken advantage of eased local and border restrictions to have their first real holiday away from home in years, and many made the most of it,” he says. “For those buyers who had been looking for months and months without any luck, it was a chance to take a break and recharge before hitting the market again after Australia Day. “Traditionally the lower north shore market does ease in January as many people head out of town, and in many ways, it was nice to see some normality return to things. I do think though that a lasting effect of the pandemic has been people’s altered focus on how they live in terms of space, style, location, and features. “Many people will be heading back into the office this year, but from what I’m hearing from buyers, it’s unlikely everyone will be going back full time.” And having the ability to work comfortably from home has become almost a fixture on buyers’ ‘must-have’ lists, Nicholas says. “That doesn’t just mean a large family room or kitchen bench where they can set up a computer and phone. Buyers want dedicated work from home spaces, whether it’s a dedicated office or study or an extra bedroom/living space that can be repurposed,” he says.

58 Phoenix Street Lane Cove

WATCH THE AUCTION

58 Phoenix Street Lane Cove

Downsizers were looking to make a move and upsizers were ready and waiting, meaning some properties were snapped up really quickly. – Nicholas Christou

“People need to have the ability to work from home, but to also close the door on it. They want features like pools, entertaining areas inside and out, space for the kids to play and socialise, and kitchens that can accommodate social gatherings.” Nicholas believes this year will bring more stability to the market, and interest rate rises are unlikely to significantly affect the lower north shore. The lack of house stock continues to be an issue for the market, and consistently strong buyer demand is going to continue to drive prices up. Apartment stock levels have risen in recent months, and this has been welcomed by first homebuyers and investors, who are noticeably back in the marketplace, Mr Christou says.

“We have some great apartment stock and also development stock and there are some excellent houses in the pipeline,” he says. “I think it’s going to be a great year when we start to see the overseas buyers and expats coming back. That is likely to put a bit more pressure on house stock, so if you have been thinking about selling, don’t put it off until spring.”

Nicholas Christou Atlas Lower North Shore

Upper North Shore Stephanie Hearne Atlas Upper North Shore

42 Barambah Road Roseville

December was really busy, it was almost like the spring market we never really had.

fter 20 years in the real estate business, Stephanie Hearne has seen plenty of highs and lows in the Upper North Shore market. And the last quarter of 2021 was an absolute standout. After a slower than average spring market, summer exploded with a run of strong sales and big numbers of buyers looking to move into suburbs like Roseville, Lindfield, Killara, and Gordon. Stephanie and the rest of the team at Atlas Upper North Shore moved into a brand-new office in November, and the timing could not have been better, says the industry stalwart. “December was really busy, it was almost like the spring market we never really had,” she said. However, looking back on 2021, she concedes it was a year that saw some unprecedented activity on the upper north shore. “We definitely saw some

amazing auctions and some big prices,” she says. Stephanie brings a wealth of experience to her vendors and an impressive collection of awards, including Rate My Agent’s Agent of the Year for Roseville in 2017, 2019 and 2020. She has also featured twice in the REB’s Top 50 Women in Real Estate and twice also in the REB’s Top 100 agents. But she is not in the business for accolades. Stephanie says she still loves engaging with sellers and buyers in the quest for the best sales results. Realestate.com.au figures report that she achieved a median sale price of $3.35 million in the past 12 months. The median time on market for her properties in the same period was just 20 days. Among one of the sales highlights for the second half of 2021 was the online auction of 42 Barambah Road Roseville, a gorgeous c1920s character home with a seamless mix of classic charm and modern touches. Idea for families, the home is set in a quiet street, close to transport, parks, Roseville Public School, and the Chatswood CBD. Stephanie had plenty of interest in the lead-up to the auction, which was held online due to covid restrictions. She was not, however, expecting such a nail-biting auction which saw eight registered bidders, including young families and couples and investors go head-to-head. More than 50 bids were traded, before the hammer fell on the sale price of $3,331,500. Not only was this $231,500 over reserve, but it set a new street record by a long shot. The

Upper North Shore

previous record of $2.65 million had been held by No. 13 Barambah Road since 2019, CoreLogic records show. It was not the first time Stephanie had been involved with selling the home – she had sold it to her vendors in 2015 for $2.175 million. “It was a great result for them,” she said. “It was a great online auction and proved how adaptable agents, buyers and sellers have become at the different ways of buying and selling due to Covid restrictions. It was also a sign of how strong the market has been, and how driven by a shortage of high-quality stock.” The auction was also memorable for an entirely different reason, as it happened in the same week Stephanie was made an Atlas partner. She joins founding partners Michael Coombs and Adrian Bridges of Atlas Lower North Shore, partner Ben Mulae of Atlas Northern Districts, and partner Mark Diamond of Atlas Brisbane. Christine Mikhael, chief performance officer of the LJ Hooker Group, said the appointment to partner recognises agents’ performance and their role in the development of Atlas.

“This is our way of showing our appreciation to their contributions to Atlas. From the communities they serve to everyone they work with; their clients, colleagues, and suppliers,” she said. Stephanie says it’s great to be recognised in the company as someone who works hard and gives back in equal measure. “Atlas has been instrumental in my success,” she says. “I’m backed by industry-leading technology and marketing, meaning my time is spent with my clients, not behind a desk.” The Upper North Shore was without question, one of Australia’s standout

performers in 2021. With more buyers than ever before looking for more space, features such as tennis courts, pools and guest accommodation, demand outstripped supply. And that translated into some phenomenal price growth. In August 2020 there were four suburbs in the Upper North Shore with median house prices of $3 million or more. Just one of those was more than $4 million. A year later that number had more than tripled to 13 suburbs, including Roseville, Greenwich, Lindfield, Castle Cove, Castlecrag, East Lindfield, Killara, East Killara, Willloughby North, Willoughby East, Northbridge, and Longueville.

Stephanie says the Upper North Shore has always been sought-after by families, particularly those who plan to send their children to the many exclusive private schools in the area. But she is now seeing another buyer profile – those who just want more space. “One of the things lockdowns has definitely done is make people look at where and how they live, and for many people it has led them to the Upper North Shore,” she says. “There is so much on offer here to suit all types of buyers. Unfortunately, stock is still low, but I expect that to ease this year.”

Northern Districts and Epping

you an owner occupier, first home buyer or investor thinking about buying an apartment this year, taking a look at the northern districts makes good sense.

The region – serviced by two Atlas offices at Hunters Hill and Epping – has bucked the trend of stock shortage seen in most parts of Sydney’s north for the past couple of years. “We have a good selection of apartment stock, and while we haven’t seen too much investor activity yet this year, that could well be the catalyst for them to return to the market,” says Benjamin Mulae, an Atlas partner who works out of the Hunters Hill office.

However, the same cannot be said for house stock, he says. “December was busy right up until Christmas and there was an expectation in the market that there might be more stock coming on early in the year than has actually occurred,” he says. “There is good demand for those great quality properties in good locations.” Developers were also still looking around for duplex sites – and they are prepared to pay a premium. At the end of November, Benjamin sold a duplex site to a developer in Ryde for a whopping $2.81 million. “We are also expecting to gradually see pent-up demand from overseas buyers now that border restrictions have been lifted,” Benjamin says. He says the area has become a hot spot for young families, especially when it comes to new homes, and some suburbs have seen massive price growth. An example is Putney, Ryde, West Ryde, and North Ryde, which have seen median prices double in 10 years. Last year saw numerous sales over the $2.5 million mark.

Northern Districts and Epping

Benjamin says 2022 is going to be an interesting year in property for the area, especially coming off a year of massive growth in many suburbs. The prospect of interest rate rises may see some borrowers have to refresh pre-approvals or revisit their borrowing capacity to factor rises in, but overall, it should not have a major impact. “Covid doesn’t govern decisions anymore, and that should bring people out to the market, both buyers and sellers,” he says.

“However, I don’t really see a huge amount of volume coming on. It’s a good time to sell. The buyers are still there and they’re still keen to purchase.”

Benjamin Mulae Atlas Northern Districts

When you look at the exchange rates and the comparative value, you can see why it is so attractive to overseas buyers to purchase property here. There is continued appetite for brand-new, high-end properties, especially those on the waterfront or with water views. – Benjamin Mulae

Northern Districts and Epping

harles Caravousanos, who works out of the Atlas Epping office, agrees. As a newly established office he is excited about the year ahead and expects the strong summer market to continue into autumn and even winter.

Epping has seen steady median house and unit price growth over the past couple of years. According to

CoreLogic, the median house price for Epping now sits at $2.25 million. Two years ago, the median was $1.8 million. The median unit price is $778,000 – two years ago it was $750,000. Charles says areas like Epping are undergoing major gentrification as young families move into the area and renovate or knock down old houses and build new ones.

“It’s a complete changing of the guard,” he says. “Young families are looking for location close to the city and the schools. It still does present good value for money.”

Unlike Benjamin, Charles has already seen a rise in the number of investors looking in the area – a good sign considering there is an oversupply of apartments on the market.

Northern Districts and Epping

“The investor comeback is very obvious – in numbers they are getting close to the number of owner-occupiers we are seeing at open homes,” he says. “And I expect overseas buyers to also be back soon, although I expect they will be buying with an element of caution. I think this will bring a plateau to the market.” As with just about every part of Greater Sydney’s north, the Epping region is struggling with a lack of quality house stock.

“The pipeline is good – it’s just a matter of getting people to commit to coming to market,” Charles says. “I think the seasonal nature of the market has blurred with Covid and the move to buying and selling in a different way, and I don’t think sellers are as convinced as they used to be that they should only sell in spring. Whether that changes as everything opens up remains to be seen.”

Young families are looking for location close to the city and the schools. It still does present good value for money. – Charles Caravousanos

Charles’ tips for suburbs to watch in his area this year include Epping, Ryde and North Rocks. “North Rocks has some fantastic options for developers,” he says.

Charles Caravousanos Atlas NSW Sales Leader

COMMUNITY FUND

hen Atlas by LJ Hooker was established, it continued to follow the core values of the LJ Hooker Group by embracing the company’s dedication to supporting community initiatives. Through the company’s philanthropic arm, LJ Hooker Foundation, Atlas offices can lend a hand to those in need by fundraising for important charities.

Last year alone, the foundation donated almost $150,000 to help those in need, including its official charity partners, the Humpty Dumpty Foundation, Cystic Fibrosis Australia, and Lifeline Australia. This brings the running tally raised by the foundation since its inception to more than $8.5 million. LJ Hooker Foundation spokesperson, Sarah Dickson, says agents at every Atlas and LJ Hooker are committed to the local communities in which they live and work.

“Whether that’s running local fundraising and donation drives for LJ Hooker Foundation to lending marquees for community events, and everything in between, it’s about putting people at the centre of what they do and giving back to their community,” she says. “At our Atlas by LJ Hooker offices, a percentage of every sale made by an agent is contributed to the Atlas Community Fund, within LJ Hooker Foundation, which helps Atlas make a tangible difference to the communities it services.” As an example, the Humpty Dumpty Foundation and the LJ Hooker Foundation boosted Hornsby Kuring-gai Hospital’s care for paediatric patients with the donation of a BiliSoft LED Phototherapy System valued at $9,990. This system is used for the treatment of jaundice, which occurs in 50 per cent of full-term babies and 80 per cent of pre-term newborns.

Sarah says this donation was made possible through the support of the Atlas by LJ Hooker Upper North Shore team. And the Lower North Shore office’s efforts resulted in the donation of 100 fingertip pulse oximeters valued at $9,580, to the Royal North Shore Hospital’s paediatric patients. These devices measure oxygen saturation, pulse rate and pulse intensity, and can be sent home with children over 12 to provide safe remote monitoring. Sarah says the donations were made possible by the support of the Atlas by LJ Hooker Lower North Shore team. In 2021, through the Humpty Dumpty Foundation, 17 pieces of equipment were donated to paediatric wards, neonatal units, maternity units, and emergency departments in hospitals across Australia. The Humpty Dumpty Foundation’s founder and chairman Paul Francis OAM paid tribute to the LJ Hooker Foundation and the Atlas Community Funds. “As pressure on local health services increases, it is more important than ever we continue our critical work of providing essential medical equipment to both hospitals and health services in need right across the country,” he says.

“After two of the most challenging years in recent history, Lifeline Australia’s 24-hour crisis hotline became a critical connection of those struggling during continued Covid lockdowns, isolation and business closures. We were proud to be able to give them additional assistance this year,” Sarah says. Atlas agents were also on hand in February and March, during the devastating floods that hit SouthEast Queensland and Northern NSW. Agents from the Brisbane office headed out to help with the clean-up efforts. Funds were also donated by the Atlas Community Fund to Orange Sky, a charity that provided laundry services and warm showers to people at evacuation centres, Ocean Crusaders, which helped with rover/waterway clean-ups, the Southside Pony Club, Surf Live Saving Queensland, the RSPCA, Red Cross, Vinnies, and the Salvation Army. “Our agents and their families pride themselves on being active members of the communities in which they live and work, and they have the support of the LJ Hooker Foundation and the Atlas Community Fund to do what they can when those communities are in crisis,” Sarah says.

Lifeline Australia became an official charity partner in September for 2021/2022.

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