City slickers flock to Southern Highlands as price drops
An influx of Sydney buyers are hitting the NSW Southern Highlands in droves as vendors reduce price expectations from the hectic days of the pandemic.
An influx of Sydney buyers are hitting the NSW Southern Highlands in droves as vendors reduce their price expectations from the hectic days of the pandemic.
The pandemic helped drive Southern Highlands land prices up by as much as 43 per cent over the 12 months to July 2022, according to the NSW valuer general, as city dwellers fled to regional areas.
Vendors lifted their expectations to match. But now they are meeting the market or reducing property prices in a bid to get a quick sale.
Di Jones agent Bradley Cocks reckons the reason for the spate of price drops is due to the large amount of Southern Highlands properties on the market.
Former Liberal MP and international tennis champion John Alexander has dropped the asking price of his 40ha Iona Park estate in Moss Vale. Mr Alexander purchased Iona Park for $4.8m in 2017 and put it up for sale last year through Di Jones agents with an asking price of $10m to $11m.
The asking price has been dropped to $8.8m to $9.2m through Mr Cocks and Kate McCullagh of Di Jones. Mr Cocks says to date there’s been a lot of interest from locals and Sydney-siders and vendors are now meeting the market.
“In a lot of cases an agent will chase the vendor’s expectations if reasonable and after enough market feedback if it is suggested that people are not as enthusiastic about that price they look at doing a price correction,” he said.
“There’s a lot of stock on at the moment, that is why I prefer auctions, there’s a lot of competition.
“People wanting to spend $3.5m for example can look at a whole lot of options across the Southern Highlands,” he said.
“I sold a property in Bundanoon and the offer was $300,000 below the asking price, so I told my vendors – if you are happy to sell for $300,000 less, and you buy for $300,000 less it’s the same equation.”
Mr Cocks said auctions are working well in the Southern Highlands at present, adding that he put the 10ha Big Sky Farm fronting 5020 Illawarra Rd, Robertson, on the market with a price of around $3.85m. “I had over 230 inquiries and 54 inspections over a six-week campaign, and it sold for $4.15m, which is a very good price in this difficult market.
“An auction is a good format for reading the market,” he said.
The Agency’s Ben Olofsen has cut the price of 35A Brigadoon Drive, Bundanoon, to $1.75m for the four bedroom and two-bathroom house on 1265sq m.
Another property in Bundanoon, fronting 71 Penrose Rd, has seen a price change to $1.595m.
The property – on 6880sq m – has four bedrooms and one bathroom.
At Colo Vale, a four bedroom and one bathroom property on 690sq m fronting 34 Jasmine St, has a new price guide of $930,000 through The Agency.
“Buyer activity has softened in some market segments, and we have vendors meeting the market, and it’s a great time to purchase in the Southern Highlands,” Mr Olofsen said.
Former MP Michael Yabsley has listed his Wombat Hollow property, which remains on the market through Liam Griffiths of Inglis. “There’s been some good inquiry,” Mr Yabsley said. The price guide is from $7.5m for the 8ha property in Kangaloon.
Meanwhile, Drew Lindsay agent Samuel Lindsay has just reduced the price of a 3.2ha property fronting 1 Argyle St, Mittagong, to $5.8m, saying the vendors are “highly motivated”.
The property features a 3 to 4 bedroom guest cottage as well as a 180sq m American-style barn with mezzanine.
“With 1 Argyle, they purchased very well and did some major improvements, for eight acres in that pocket near Bowral, the position is fantastic,” Mr Lindsay said.
“It’s essentially two dwellings.
“It’s been a patchy market off the back of Covid; some vendors were slower to react to the adjustment post-Covid and to be more in line with where the market is responding.
“That is compounded by the market being patchy with less buyers, and interest rates. Now it’s coming to a point where vendors are being realistic.
“It’s now a good time to buy in the Southern Highlands.”
The market is normalising as vendors reduce price expectations, said real estate agents and large Southern Highland landowners.
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