Buyers are spoilt for choice in this beachside Sydney suburb
A healthy line-up of luxe listings hits the market ready for the spring selling season as buyers look to lock in holiday homes for summer.
Discretionary spenders seeking a high-end holiday home in Sydney’s Palm Beach have the upper hand this spring, as three times as many luxury listings are hitting the market compared to the usual numbers.
The popular beachside locale, 40km north of Sydney’s CBD, has long been a favoured secondary-home market for the city’s affluent. The pretty peninsula is at the northern end of Barrenjoey Road near Pittwater.
Traditionally, the area is quiet during winter, while a surge in transactions occurs in spring as buyers look to secure holiday homes before the Christmas period. This pattern shifted during the pandemic, when remote working prompted many Sydneysiders to relocate to the area for lifestyle reasons.
Now, the market has reverted to its pre-pandemic rhythm – except for the stock levels and pricing.
“We’ve gone back to the traditional Palm Beach market, where winter is quiet,” says LJ Hooker Palm Beach agent Dennis Kennelly.
“During Covid, winter was our busiest period. Now buyers are emerging, keen to settle before Christmas.
“We’ve seen a huge influx of inquiries over the past two weeks. Confidence has returned, and people want their family Christmas in Palm Beach.”
One standout listing is 69 Pacific Road, Palm Beach, a 1930s property that was listed in mid-August and has an expressions of interest guide of $11.9m.
As one of the largest land holdings in the area at 1400sq m, the property offers original features such as vaulted ceilings and a stone fireplace, alongside a substantial renovation, and stunning water views.
Kennelly says the number of listings on the market is more than double the usual figure, with a significant proportion of transactions occurring off market, and buyers in the $6–$25m range are spoiled for choice.
“There’s a lot of fresh interest from new buyers who weren’t previously on our radar,” he says.
“We’re essentially back to the traditional holiday home buyer, with around 90 per cent of inquiries coming from Eastern Suburbs residents looking for weekenders.
“Younger tech money is coming into the area, but it’s still very traditional.”
CoreLogic data shows Palm Beach’s median value at $3,243,720, making it the most expensive suburb within Pittwater council, despite a 15.2 per cent drop in values in the year to August. In contrast, Sydney’s median values increased by 5 per cent over the past year, hitting a record high.
Ray White Prestige Palm Beach principal Noel Nicholson says the market has shifted significantly since the pandemic’s peak, when the area experienced a frenzy of activity.
“The biggest change has been the time on market. Properties are taking much longer to sell, and it’s challenging for vendors who bought during Covid or are used to fast-moving sales,” he says.
“This is a discretionary market, and discretionary spending has slowed everywhere, not just in Palm Beach. The urgency to buy here isn’t what it used to be, and prices have adjusted accordingly.”
While buyers are prepared to buy on their own terms – and many are subject to the sale of their own properties before being able to make an offer – Nicholson adds that rare, high-quality properties continue to attract strong attention among buyers.
A five-bedroom home at 95 Pacific Road, redesigned by award-winning architect Chris Howe, is typical of the modern beach house style that draws attention.
With a price guide of $13-$14m, the property exemplifies the quality of Palm Beach’s premium market.
“I love that property because of its build quality. Every room speaks to you,” Nicholson says. “The type of buyer for a home like this is sophisticated and accustomed to luxury. It’s the best of the best – high-class construction, prime position facing due north, and very private.”
This story is from Mansion Magazine, out this Friday October 25. Inside your copy of The Australian.
