Sydney’s Northern Beaches heads list for top-end market growth

Cashed-up property buyers have flocked towards the water over the past year, leading to a surge in prices in some of the most sought after locations.

A rare waterfront home at Avalon Beach is being offered for $11.5m.

Cashed-up property buyers have flocked towards the water over the past year, pushing up prices in some of the most sought after locations by almost double the national growth rate.

Prices in the top quarter of Sydney’s Northern Beaches house market have climbed at the fastest rate in the country, up 41.1 per cent since September 2020, according to data from property researcher CoreLogic compiled for The Weekend Australian.

It is almost double the rate of broad based national house prices growth of 22.9 per cent recorded over the past year. The whole market, including units, is up 20.9 per cent.

The call to the ocean has marked much of the top 10 growth regions in the upper quarter of the market as buyers look to lock in a sea-change or holiday escape against the backdrop of Covid-19 uncertainty.

Principal and director of McGrath Pittwater James Baker said the region had been popular for several years in the lead up to the pandemic, which only cemented intentions to purchase.

“The market has been buoyed by low rates but the search for lifestyle and holiday homes is driving buyers right now,” Mr Baker said.

“You either want the beach or the Pittwater, boats or sand. Buyers want the relaxed vibe, people are a lot more chilled out here as the location runs at a different pace to the city.”

Mr Baker and co-agent Lauren Garner are marketing a rare deep-waterfront home with pristine water views and long jetty. Located at the northern end of Clareville Beach at 90 Hudson Parade, the five-bedroom property with boatshed received considerable interest with a price guide of $11.5m.

A ‘once-in-a-generation’ opportunity on the Rye waterfront is on the block for $5.5m-5.9m.

The only Victorian entry to crack the top 10 luxury growth regions was the Mornington ­Peninsula, which recorded the second biggest increase, of 36.3 per cent.

The Sutherland region, south of Sydney, and the northern NSW beaches of the Richmond-Tweed represented the third (up 35.9 per cent) and fourth (up 35.6 per cent) largest growers.

On top of a cliff in the popular suburb of Rye on the southern tip of the Mornington Peninsula, Jellis Craig Sorrento director Emil Foller is currently marketing a property with 180-degree panoramic bayside views alongside colleague Troy Schwarze. The owners have decided to move north to Byron Bay in northern NSW, creating this “once in a generation” opportunity.

“A lot of people are coming out swinging and making offers on the spot, even in the that $2m to $3m price range,” Mr Foller said.

“Once lockdowns end, there will probably be another rush on the Peninsula.”

A guide of $5.5m and $5.9m has been given for the home at2649 Point Nepean Rd, with expressions of interest closing November 3.

CoreLogic’s research director Tim Lawless said the skew towards coastal markets close to metro centres is reflective of a greater trend in the workforce ­towards flexible arrangements, enabling greater housing options.

“With remote working arrangements likely to have some degree of permanency post-Covid, it seems that demand for residential properties that offer up a blend of lifestyle appeal and commutability to one of the major capitals has surged,” Mr Lawless said.

“Prior to Covid, these areas were arguably not as popular with home buyers because of the longer commuting times, however the rise in flexible working arrangements has helped to make these areas more desirable if you don’t need to commute to work every day.”

The Sunshine Coast and Gold Coast marked Queensland’s entry on the top 10 of luxury growth markets, up a respective 31.8 power cent and 31.1 per cent.

The Australian Capital Territory rounded out the list.