Price growth continues but pace expected to slow

Georgie O’Meara – Price growth continues but pace expected to slow

2020 was a challenging year for the property market right across Australia, with economic uncertainty creating the biggest downfall for home buyers and sellers. Fortunately though, 2021 is looking up and in Sutherland Shire, there’s been strong growth for property across the board, with an increase in demand.

Back in January 2021, Sutherland Shire, or The Shire, was tipped to be a property hotspot in 2021 and so far, it hasn’t disappointed.

High Demand

The Sydney property market has been performing well in 2021, with property prices increasing 6.3% in the first quarter of the year.

A report by the ANZ bank predicted that Sydney’s house prices would increase 19% throughout the year, dropping to a 6% increase in 2022 as house prices stabilised. The strongest performing areas are those in the upper end of the market, with larger properties; as well as the outer ring, which attracts first-home buyers and those looking for affordable properties.

Sutherland Shire falls into the first category, where the median house price in the shire is $1.235 million (Miranda), while the median unit price in Sutherland is $645,000.

According to Georgie O’Meara, Director of Kore Property, the strongest demand from buyers across the region are for those who are upsizing their property, and they’re looking for properties that are move-in ready.

“Demand has generally been high, particularly in Woronora Heights where there are many large homes,” she says.

At the southern end of the Shire, there’s been better value for properties, and with the lowest interest rates on record, a lot of buyers are taking advantage.

“We’ve found that most people are looking for properties that are move-in ready. And it’s the larger, four- and five-bedroom homes, with a pool, two living areas, and not needing too much work that are in highest demand.”

The Challenge

With many office workers now spending much of their time working at home, thanks to COVID-19, many have branched out into the shire as they don’t need to be so close to the CBD. It’s the Sutherland lifestyle that really pulls in the larger households to the region, with waterways and beaches aplenty, including Cronulla Beach and Cape Solander.

The region has low unemployment levels (according to the ABS, in December 2020 the unemployment rate in Sutherland Shire was 3.1%), and annual capital growth at 6%.

Unfortunately, the increase in demand is riding off the back of a decrease in supply.

“Listing numbers are much tighter across the board,” she says. “Units have also not been performing as well as houses in sales, or rentals.”

This hasn’t stopped Kore Property from making sales though. In the past three months, the agents have sold 37 properties, with key sales including:

Ø  14 Pelican Place, Woronora Heights; sold for $1.6 million, after 13 days on the market (suburb record)

Ø  8 Petrel Place, Woronora Heights; sold for $1.56 million, off-market (via database)

Ø  1 Edgecliff Place, Engadine; sold for $1.31 million, off-market (via database)

Into The Future

Moving forward, strong demand for houses in Sydney in general is expected to continue, while demand for apartments will be softer. Sutherland Shire can expect the same.

“In the next few months, we expect the market will stabilise slightly,” Georgie says. “We’ve already started to see an increase in supply, which will help to meet the demand.”