NSW record breakers: the most expensive homes in 360 of the biggest Sydney suburbs
A special investigation has revealed the top home sale in each suburb, with close to one in six price records set this year. See the best home in your suburb
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Cashed up home buyers have been shelling out record sums for Sydney’s best homes despite soaring interest rates pulling the market into a slump expected to last well into next year.
A Daily Telegraph investigation of property transaction data across every city suburb showed the most expensive property sales in close to one in six city areas were paid this year.
The bulk of the 124 suburb price records occurred after April, when prices across the market as a whole began to fall and the Reserve Bank of Australia started a succession of interest rate hikes.
Sydney’s median property price has fallen 3.4 per cent over the last five months, according to PropTrack research.
And interest rates have shot up by 1.75 per cent over four months – the fastest rise since 1994.
Experts said the fact that some listings were still fetching unprecedented prices showed the market was more “patchy” than headline price drop figures would indicate.
There were also many buyers who were not affected by interest rate rises and could afford to shell out more money than anyone before them in their suburb because they didn’t need a mortgage.
Cooley Auctions director Damien Cooley, whose auction house has dropped the hammer on many of the record-breaking sales, said the top sales exposed a little discussed reality about the current market.
“Prices are falling and buyers are in the driver’s seat in most negotiations, but there still isn’t a huge amount of quality stock available,” Mr Cooley said.
“Finding something that ticks all the boxes remains difficult. There are not many available, so buyers are often still prepared to spend a lot of money if it’s exactly what they want.”
Mr Cooley added that it was the opposite for properties needing lots of work, those with major drawbacks like a position on a busy road, or high-rise apartments.
Many of these properties were selling for massive discounts or languishing on the market unsold, he said.
McGrath agent Craig Ireson sold a home earlier this year that set a new Castle Cove record at $22 million and said there were still big spending buyers circling the market.
“We know of a lot of buyers shopping around with a $20 million or $30 million budget,” he said.
“As soon as they see something they want, they go for it. Finance doesn’t affect them. They don’t need a mortgage.”
Veteran agent John Cunningham, the Cunninghams Real Estate director and former president of the Real Estate Institute of NSW, said even buyers at the lower end of the market were prepared to spend more in the right situation.
“Buyers don’t hang back when it’s the best properties,” he said. “They will stretch if it ticks all their boxes.”
Sales data obtained from realestate.com.au and CoreLogic revealed the properties that sold for a suburb record price this year were mostly modern or fully renovated homes.
They tended to be larger than average for the area and were usually “prize” offering in their markets with sought after features such as a north-facing aspect or coastal views.
Properties considered record sales excluded those sold as development sites, multi-home sales or residential properties rezoned to commercial use.
Homeowners who have sold for record prices were often not surprised to get huge sums, despite the real estate downturn.
Jewellery designer Kylie Hinds, founder of Not Heidi, and her family sold their Coogee house in May for a record $13.1 million.
The family told The Sunday Telegraph shortly after the auction that they had expected strong competition for the house because it had a rare position footsteps from the famous Bondi to Coogee coastal walk.
The property had also featured in numerous design magazines and was widely considered one of the best properties to come to market in the area for years.
The auctioneer for the property, Jake Moore, said bidders on the property had gone “hard” for it, knowing similar opportunities rarely came up.
Scerri Auctions director Chris Scerri called the auction for a Summer Hill property on Seaview Cres last week that sold for $4.8 million – a new suburb record. He said many of the bidders were “cashed up”.
“Everyone else’s budgets may be shrinking because rates are going up, but there also upsizers and downsizers who have sold their homes for huge prices and they’ve got a lot of money behind them,” he said.
“If they want something they will just pay whatever they need. That fear of overpaying goes out the window when it’s a certain property. The mortgage isn’t an issue.”
Originally published as NSW record breakers: the most expensive homes in 360 of the biggest Sydney suburbs
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