Agent says Manly property prices will increase by 5-8 per cent this year

PROPERTY guru John McGrath predicts Manly property to be the stellar performer on the northern beaches this year. Growth of at least 5-8 per cent is expected for both Manly and Seaforth.

Peter Mumford launches Stone real estate business in manly causing ripples in industry. NSW Real Estate

PROPERTY guru John McGrath believes Manly property is underpriced and will increase in value by at least 5-8 per cent.

“Manly is going to be the stellar performer on the northern beaches this year and property prices in Seaforth should also track well,” Mr McGrath said. “Both are great lifestyle suburbs. They are going to be great in terms of capital gain.”

Mr McGrath said buyers were making the move from harbourside locations to beachside homes for lifestyle reasons. Beachside suburbs were now being seen as more than just the domain of the young.

Mr John McGrath, is opening a new company-owned office in Manly and predicts good growth in the area this year.

In addition, Manly prices were underpriced compared to property in Bondi, in his opinion.

Median house prices in Manly grew 8.9 per cent in the 12 months to October 2014, to a new high of $1.96 million, while Manly units jumped 14.7 per cent to $895,000, according to CorelogicRP Data.

Seaforth units leapt by a massive 20 per cent to a median of $937,500. While Mr McGrath doesn’t expect growth to be as high this year, he maintains Seaforth and Manly are the two suburbs likely to see the strongest capital gain on the peninsula.

Mr McGrath is so sure of the strength of the Manly market this week he announced he was paying for a new company-owned McGrath office in Manly. Just 10 of the brand’s 62 offices are actually owned by Mr McGrath. The majority are franchised out.

The news comes during a summer of change in the real estate industry in the Manly area.

Mr McGrath said the real estate industry is consolidating and buyers and sellers can expect to see fewer but larger agencies.

A new business, Stone, has opened three offices on the northern beaches, two of Seaforth’s biggest agencies have merged and a prominent independent agency is opening a second office in Manly this month.

Peter Mumford has launched Stone with more than 50 staff and offices in Manly, Seaforth, Mona Vale and Lane Cove. Other offices are planned for Dee Why and Mosman. The entrepreneur is bringing a new model of doing business to real estate including 24-hour access to reports about a homeowners property, more transparent dealings in property management and an employee ownership plan where everyone in the business shares in the profits.

“Someone selling their home can be a in a cafe while their home inspection is on and receive live comments on what buyers think about their property,” Mr Mumford said.

The two major agencies, LJ Hooker Seaforth and  Richardson and Wrench Seaforth/Balgowlah, merged this month creating the largest LJ Hooker on the northern beaches.

The combined office, in Sydney Rd Seaforth, will have three principals, 23 staff, and a large property management team. John Davis, of LJ Hooker Seaforth, said the new team would be the major player in the Seaforth, Balgowlah Heights and Clontarf area with 50 per cent of the market share.

Meanwhile the major independent agency Cunninghams Property, of Balgowlah, with 42 staff is expanding with a second office, in Pittwater Rd, Manly to be opened later this month.