Shortage of houses on the northern beaches and hungry buyers pushes prices up

January 22, 2021

Shortage of houses on the northern beaches and hungry buyers pushes prices up

January 22, 2021
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Sydney’s northern beaches has traditionally struggled with a shortage of houses to buy, and latest figures prove what agents have been talking about for years.

A search on realestate.com.au this week showed there were 391 properties listed for sale on the peninsula. Of these only 139 were houses.

Comparative data from realestate.com.au shows that house listings are down on this time last year, however the shortage was even greater last year compared to 2019.

New listings have started to come on this week, including a stunning beach house at 13 Karloo Pde, Newport, which is for sale by private treaty with a guide of $6 million, through Simon Duckworth, of The Beaches Real Estate.

And the good news is that apartment stock is higher this year than last, up five per cent on the same day in 2020, the data showed.

Cameron Kusher, director of Economic Research at the REA Group, said the northern beaches was clearly a hot spot for properties, with demand outstripping supply.

“The northern beaches is currently seeing the highest number of views per listing for properties for sale on realestate.com.au and this has actually been the case for at least the past 12 months,” he said.

“This is partly a function of low supply of stock for sale but also due to strong interest in properties in the market.”

And prices have responded accordingly, he said.

“Over the 2020 calendar year, dwelling prices in the northern beaches have increased by 5.5 per cent, far outstripping the 2.9 per cent increase across the broader Sydney market,” Mr Kusher said.

“Clearly there is lots of demand and limited supply of stock for sale which is pushing prices higher.”

Northern beaches house stock has been consistently low for the past few years, and is not expected to change any time soon.

“Low listings in the northern beaches reflects how tightly held the area is, people generally don’t want to leave while many want to move in,” Mr Kusher said.

“Local residents don’t sell because there is nothing for them to move to, so the volume of stock coming up for sale just remains consistently low.

“Compounding the issue, is that there is virtually no opportunity to create new housing stock in the region.”

Among the new listings is a stunning five-bedroom home at 1 Alma St, Clontarf, (pictured above), that has a guide of $2.8 million, and is for sale by private treaty through Steve Lambley and Jacob Beton, of Cunninghams Real Estate.

Without a “dramatic increase” in the supply of stock for sale, 2021 was likely to see a continuation of the price growth seen in 2020, largely due to the ongoing strong demand and the limited supply of properties for sale, Mr Kusher said.

“Beachfront and close to the beachfront properties are likely to be more sought after,” he said.

“With working from home becoming more prevalent, if people don’t have to worry about the commute to the CBD as much, the northern end of the northern beaches may become increasingly in demand.”

No. 46A West St in Balgowlah.

No. 46A West St in Balgowlah.Source:Supplied

More new listings are coming in the next few weeks, which will be good news for hungry buyers. Another new listing this week was 46A West St, Balgowlah, which is for sale through Phillip Wright and Adam Moore, of Stone Real Estate Seaforth, with a guide of $2.5 million.

Mr Kusher said the apartment market was facing some challenges as a result of COVID-19. “However, the uptick in units for sale in the northern beaches is more of a function of new apartment stock growing and becoming available as opposed to houses where the stock is basically stagnant,” he said.

Source: https://www.news.com.au