Property prices on the Northern Beaches of Sydney have gone up $10,000 every week this year, according to research—and developers are circling the blue-ribbon suburbs.
The median house price in the Northern Beaches increased 15.1 per cent during the first half of 2021, jumping $290,000 to $2.21 million, according to Strand Property Group.
Unit prices in the Northern Beaches have increased 6.8 per cent over the same period.
Strand Property Group director Michael Ossitt said sale prices had consistently been above price expectations as buyers pay through the nose to secure a property in the tightly-held region.
“The first six months of this year was the busiest that I have ever experienced with demand from buyers really quite unbelievable at times,” Ossitt said.
“Even with the current lockdown in Sydney, demand is still extremely elevated, but available stock has all but dried up, which will probably mean even more price growth in coming months.”
Northern Beaches price increases
|Suburb||Median house price Jan-21||Median house price Jul-21||% change|
^Source: STRAND Property Group
Prices in Curl Curl have skyrocketed, banking $25,000 increases each week, according to Ossitt.
“Curl Curl’s median house price has soared by nearly 25 per cent, or a staggering $650,000 over the [six-month] period,” Ossitt said.
“The Northern Beaches is one of the most desirable locations to live in Sydney, so affordability here is a relative term.”
Ossitt said other Northern Beaches suburbs, including Collaroy Plateau, North Manly and North Balgowlah, had lower buy-in prices and were attracting a lot of interest.
Sydney-based developer IPM has recently acquired two neighbouring properties at 13-17 Ocean Road at Newport, and plans to lodge a development application soon for an undisclosed number of three-bedroom luxury apartments.
IPM also bought Pittwater Plaza on 2000sq m site at Mona Vale with an existing development approval for 36 apartments, which it plans to redesign for high-end apartment offerings.
IPM managing director Steven Sroba said the developer was looking to diversify and had been on an aggressive acquisition process across the Northern Beaches, with a $200-million pipeline now in place.
“Sydney’s Northern Beaches has witnessed a once-in-a-generation resurgence in recent months with some suburbs surging in value by as much as 28.5 per cent,” Sroba said.
“By comparison there is little in the way of development opportunities so demand from local owner-occupiers looking to reinvest in the area are at an all-time high.
Sroba said IPM had identified a gap in the market and looked to capitalise on the niche high-quality apartment market in the Northern Beaches, which he said was “under-serviced”.
“While Sydney will always remain a large part of our business, we are seeking to supplement that with a significant Northern Beaches pipeline and will continue to look for development opportunities where we can realise the inherent value in underdeveloped assets,” he said.
IPM also bought a 1362sq m Palm Beach property at 1112-1116 Barrenjoey Rd earlier earlier this month, taking its total pipeline to $200 million. The developer set an off the plan suburb record at Mona Vale recently at its Iluka waterfront development, where the three-bedroom penthouse sold for $4.775 million.