What’s ahead for Upper North Shore real estate?
Are you thinking of selling and wondering what’s ahead for the real estate market in the Upper North Shore? There’s still strong buyer demand and above-average auction results, so it’s definitely a good time to make a move. Read on for current price trends and where we might be heading next.
Where are we and where are we going?
Looking at the Sydney market as a whole, home prices rose by 0.3% in March. This means that they’re now only -1.4% below the peak prices recorded in January 2022. Many of the major banks are predicting prices to go up by between 4% to 7% while SQM Research is forecasting a fall in property values by around 4%.
At the same time, vacancy rates are extremely low when compared to historic averages, while as we all know, rental prices are going through the roof and not expected to slow as demand is still far higher than supply.
As inflation starts to come down and interest rates are not that likely to rise any further, there will be an increase in activity within the property market as confidence returns. So, if you’re seriously looking at getting into the market, downsizing or relocating, this is not a bad time to do so.
What about the Upper North Shore?
It’s important to remember that while there’s a lot of talk about a very heated market, most of this activity is happening at the lower end of the market as well as with apartments. Large houses have a smaller pool of buyers, although they’re still getting some great prices. As a local area specialist, part of my job is to give buyers all of the information they need about the area as well as the property, so they can make a confident decision.
Looking locally, we’re always seeing well presented properties attracting more attention from buyers. If you’re thinking about a move or a downsize, here is some recent data from our area.
Normanhurst price trends
The median price for houses in this suburb is currently around $1,950,000. This reflects an increase of 11.4% within the last 12 months and is only $20,000 below the price peak in April 2022. After a significant dip in April 2023 to around $1,720,000, prices started to steadily rise again until levelling off around October 2023.
Units, on the other hand, have been sitting at a median price of between $1M and $1.2M since March 2021.
Thornleigh price trends
Houses in the suburb of Thornleigh are currently sitting at a median price of $1,860.000. This represents a fairly significant increase of 16.3% in the past 12 months and is only $20,000 lower than the peak price back in February this year.
It’s noteworthy to point out that the median price for units in the suburb has dropped by 13.4% in the past year to $855,000. This is a very significant drop from their peak price in February of $1,101,000. But at the current price, rental yields are around 4.2%, which is quite good news for investors wanting to get into the market.
Pennant Hills price trends:
Homes in Pennant Hills are sitting at an all-time high median price of $2,150.000, which represents a significant increase of 19.4% over the past 12 months.
However, units in the suburb have been trending up and down like a roller coaster since a significant price drop in November 2020 to $578,000. This is far below their all time peak of $869,000 in July 2019. The current median price for a unit in Pennant Hills is $645,000 with a rental yield of 4.7%. This, once again, is a favourable scenario for would-be investors who are interested in acquiring units that they can rent out.
Are you thinking of selling this spring?
Whether you’re looking to sell your home or you’re an investor looking for a unit with a high rental return, reach out to Page&Co today. I’m always available to talk to people looking to buy or sell on the Upper North Shore.
