The Upper Northern Beaches have felt like a local secret at times over the past couple of decades, with the majority of property transactions taking place between existing residents.
But data shows that this is all changing.
Let’s take a look at where Northern Beaches’ peninsula buyers are coming from now and what’s driving the local property market.
Where do Upper Northern Beaches buyers come from?
We’ve all heard the moniker “the insular peninsula” for the Upper Northern Beaches, referencing how closely connected our community is, and how much we love to stay in the area we’ve grown up in. I for one grew up in Avalon, went to Avalon Public School and other than a 6 year stint working in London, I now find myself living back where I started, raising a family and working in the local community. Why would we leave the beautiful Beaches? This means that the property market was really driven by locals looking to upgrade, downsize or change suburbs.
But data indicates that that’s no longer the case. Realestate.com.au looked into the origins of buyers searching for Northern Beaches homes and found that most are now actually coming from other parts of Sydney.
CBD and Surry Hills-based buyers topped the list of those looking for Northern Beaches homes, followed by those closer to home in Collaroy, Narrabeen, Seaforth and Balgowlah. Out-of-area buyers from Mosman, Ryde, Ermington and Lane Cove rounded out the top 10.
This supports what we’ve been experiencing in the area ourselves for the past couple of years. Across the board, we have noticed more out-of-area buyers. According to an article by news.com.au, up to 80% of total buyers are coming from out of area depending on the suburb.
What’s driving the market in the Upper Northern Beaches?
The appeal of the Upper Northern Beaches hasn’t changed, but the changing nature of work and improved access to the city have made it a more realistic proposition for out-of-area buyers. More flexible work hours and the ability to work from home have made it feasible for buyers who’ve been planning a more relaxed pace of life or a mini sea change, plus better public transport, more infrastructure and the introduction of the B-line has eased commutes for those going into the city.
The good news about this increased interest in peninsula homes at the moment is that it’s helping to keep buoyancy in the market during a quieter period of recovery across the city. There was less competition when sales were mostly coming from locals, but a new bigger pool of buyers is contributing to increased demand, price stability and good auction clearance rates.
What’s happening in the market? Prices and clearance rates on the Northern Beaches
Mid-August data from CoreLogic shows auction clearance rates at two-year highs in Australia, reaching 81.7% in Sydney. September maintained these high levels however already as expected these have settled back to the high 70s. A year ago, the clearance rate in our city was 51.9%, so it’s fair to say the market has come a long way.
And when we break the stats down into regions, we see that the Northern Beaches, in particular, are performing above average – our clearance rates were 83.3% in the week in question, based on 41 auctions.
This is a good sign for the local market heading into the spring peak selling season, so now’s the time to think about listing your home if you’ve been considering it recently. At the moment, median house prices in the Upper Northern Beaches range from $1.8m in Avalon Beach and Newport, and up to $3.4m in Palm Beach. For units, median prices are currently $815k in Newport and $850k in Avalon Beach.
Thinking of selling your Peninsula home?
If you want to make the most of these out-of-area buyers this Spring please contact me or one of my team today.