Should you believe the headlines about the property market falling? We take a look at what’s happening in the Lower North Shore property market in 2022.
Sales trends: The property market is recalibrating
2022 started with a bang. It was a crazy first quarter, with fear of missing out (FOMO) pervading the market and leading to some incredible sales. We saw strong demand for all property types, from entry-level units to larger units and semis with family or downsizer appeal, right through to family homes and prestige properties.
This is reflected in Mosman’s median price, which has grown 18.9% for houses and 23.8% for units over the past 12 months according to REA data.
But it’s no secret that, as we entered the second quarter, the incredible rate of growth we’d been experiencing began to slow. In fact, Sydney has been recording progressively larger monthly value declines since February. Which, in many ways, makes the REA data for the past 12-months in Mosman all the more impressive.
There have been significant price drops in some Sydney suburbs, especially where
the rate of growth has been unsustainable. However, blue-chip and established areas such as ours have not, by and large, experienced the same falls. The top end of the market remains especially strong, with a number of sales over $10 million in Mosman this year.
All-in-all, the decline in the median value hasn’t been as severe as some people think. For instance, Sydney’s Home Value Index fell just 1% in May. That needs to be put into perspective, considering we’ve just come off the single strongest price gains for the past 30 years.
A market recalibration
More than anything, we’re now seeing the market recalibrate and reset. Post-election, people are reassessing their plans, especially in light of interest rate rises (and more on the cards), and global economic uncertainty.
With the election out of the way and the result a clear one, we expect that some people may return to the property market - even in the face of rising interest rates.
Mosman now ranks fifth on the list of suburbs with the largest gap between unit and house prices, meaning upsizers wanting to stay in the area can find the market challenging. The median unit price is $1.2 million, while the median house price is $4.85 million according to Domain, leaving a gap of $3.65 million - or 304% - for those wanting to make the move from an apartment to a house in our area.
Mosman also came in second place on Domain’s list of the country’s priciest Local Government Areas (LGAs) with a top-end median of $11.385 million.