Mosman market quietens as Lower North Shore values weaken: HTW residential

Mosman market quietens as Lower North Shore values weaken: HTW residential
Mosman market quietens as Lower North Shore values weaken: HTW residential

The Lower North Shore, often a unique market, can fluctuate either way in a hurry, according to the latest Herron Todd White (HTW) residential report. 

The report noted that last year, as the general property market started to weaken, this region was quite resilient and still saw some very positive results.

"This was especially true in the prestige section of the market with higher value properties outperforming the rest of the market and with a record number of sales," the valuation firm said. 

"Now almost half way through 2019, we take stock of which direction this market is headed.

"The affluent suburb of Mosman, the most well known suburb on the lower north shore, is often the best indicator of where the market currently stands."

The most recent statistical data sourced from realestate.com.au, indicates a median house price for April 2019 of $3,782,500.

A recent sale in Mosman was a renovated full brick Federation house (pictured above).

The three bedroom home at 41 Countess Street was sold for $3.35 million. 

It comprises master bedroom, two additional bedrooms, media or fourth bedroom, open plan living/dining space, kitchen with breakfast bar, and covered alfresco area. 

It's close to Countess Park, city buses, shops, schools and restaurants. 

"Comparing this price to the median from December 2018, indicated at $3.9 million, we see an obvious weakening trend," the valuation firm commented. 

It would appear that this time around, Mosman is following the trend of the general market cycle, according to the HTW report. 

The prestige sector of Mosman, having experienced a booming few years, also seems to have significantly quietened.

Researching the number of transactions that have occurred over $5 million in Mosman so far in 2019, it appears that there have only been three such transactions in the suburb and none over $10 million, according to CoreLogic data.

"This is in contrast to 2018 where we saw a total of 85 sales over $5 million for the year, 34 of those between January and May," the valuation firm said.

"Local selling agents have indicated that there has certainly been a decline in activity over $5 million, however quality properties are still attracting plenty of interest from genuine buyers."

The unit sector of Mosman usually performs very well and in line with the dwelling market.

With all the talk of over-supply in the form of high-density development, Mosman is partly immune from this issue.

There has been limited high density unit development in Mosman, with most new strata properties being targeted at downsizers.

The report suggests this product is more likely to be lower density and higher quality, aimed at those looking for a low maintenance lifestyle.

The most recent statistical data sourced from realestate.com.au indicates a median unit price for April 2019 of $980,000.

Mosman market quietens as Lower North Shore values weaken: HTW residential

A two bedroom apartment at Mosman with panoramic harbour and district views was sold for $985,000 in May.

The top floor apartment at 37/170 Spit Road (pictured above) comprises open plan living/dining, two double bedrooms, stone kitchen and sunny balcony.

It's within close proximity to Balmoral Beach and Mosman Village with cafes and shops. 

"Comparing this price to the median from December 2018, indicated at $1.03 million, we again see a weakening trend, generally in line with the dwelling market declines being experienced in Mosman," it said.

"The second half of 2019 will be extremely interesting as we see what direction the market on the lower north shore takes." 

Tags: 
Htw Lower North Shore

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