Regional market price plunge on interest rate talk

NSW southern highlands agents are cutting prices on properties across the wealthy region on the back of talk that the next interest rate move could be a rise.

Mount Ashby Estate’s homestead at Moss Vale near Bowral in NSW is for sale.

NSW southern highlands agents continue to cut prices on properties across the wealthy region as talk of further interest rate rises dampens confidence in the lifestyle real estate sector.

The Mount Ashby Estate at Moss Vale, encompassing a homestead, cellar door and restaurant, for example, has taken a $5m cut to its initial price guide.

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.

But the tide has turned thanks to interest rates and the sluggish economy, and vendors are reducing prices to get sales.

Forbes Global Properties agents Richard Royle and Deb Cullen reduced the asking price of the grand 40-hectare Mount Ashby Estate from $15m to a guide of $10m on behalf of its owner, antiques and homewares expert Sally Beresford.

“The lifestyle market has gone quieter this time of the year, people have gone overseas, coupled with that this time of the year people have more time to look at properties, it’s more of a time for regional buying,” Ms Cullen said.

One of the tourism attractions which is part of the Mt Ashby Estate.

But she said inquiries about Mount Ashby Estate, which sports a 2020-built four-­bedroom home and assorted tourism facilities, had been strong since the property hit the market.

Featuring a popular French ­cellar-door restaurant that can seat at least 60 guests indoors and outdoors, as well as an antiques business and winery, Mount Ashby Estate was established by Ms Beresford and her late husband, Chris Harvey.

The Nowra Road home at Moss Vale, 108km south of Sydney, has acquired tourism zoning, and while there is a concept plan in place for the development of a luxury five-star, 60-room hotel and 30 cottages on the property, plans are more advanced for a 170-seat function ­centre that has council approval to proceed.

If the luxury resort development proceeded, it would position Mount Ashby Estate as a renowned tourism destination for the southern highlands region, reminiscent of a grand European-inspired estate.

The stone-constructed main house boasts four sumptuous bedrooms, four lavish bathrooms, a state-of-the-art kitchen and palatial living ­spaces set across a magnificent floorplan.

The homestead is accessed via a tree-lined driveway, and outbuildings include a 1918-built corrugated iron shed.

Mt Ashby is a mixed business enterprise.

The Mount Ashby Dining Room is constructed from rendered stone walls and features French-style slab floors.

A statement French fireplace and windows overlook the terrace and gardens.

Ms Beresford has decided to downsize within the area.

Meanwhile, Drew Lindsay ­Sothebys International agents Samuel Lindsay and Lisa-Marie Cauchois have dropped the price on another great southern highlands property – the 1876-built Annandale.

The 2093sq m property fronting 29-31 Merrigang Street in the heart of old Bowral now has an asking price of $3.95m, down from the original asking price of $4.77m to $4.95m.

“It’s a solid drop,” Mr Lindsay said.

“We are basically just responding to the market, and given recent uplift and comparable sales, we are wanting to sell it, and listening to the market and it’s now great value.

“It’s had significant renovation, which is sympathetic to the era and is very luxurious.”

29-31 Merrigang St at Bowral.

The property features 12-foot- high ceilings, wide hallways, and traditional fireplaces.

The six-bedroom family home could be rented on a short-term rental yield of $150,000 to $160,000.

The main house has three bedrooms and 2.5 bathrooms, while the self-contained east wing apartment sports two bedrooms and one bathroom, and the west wing apartment has one bedroom and one bathroom.

Mr Lindsay said he was still ­receiving inquiries about Annandale, and added that while properties were changing hands, those that were considered overpriced were taking longer to sell.

“There’s a lot of discretionary purchasing, there are sales happening, we are still getting inquiry,” he said.

Mr Lindsay declined to comment, but he recently sold a 10ha property fronting 77 Kia-Ora Lane in the prestigious Kangaloon area.

Inside 29-31 Merrigang St at Bowral.

The property, that includes a five-bedroom and three-bathroom house, last traded for about $4.55m, according to CoreLogic.

Andrew de Montemas, also of Drew Lindsay Sotheby’s International Realty, added that in the key southern highlands areas of Bowral, Mittgong and Moss Vale, any vendor who needed to discount a property by more than 15 per cent was probably expecting too much in the first place.

Mr de Montemas said if vendors wanted to sell, in many cases they would have to drop prices to do so.

“It’s probably better to take action now,” he added.

“Otherwise their properties will just sit there.”