In the past quarter, we’ve observed a surge in demand for apartments, deepened our understanding of the NSW government’s rezoning initiative, and continued to assist clients in managing the effects of rising living costs across both sales and rentals. These months have been notably dynamic, with a surge in online engagement and a marked rise in buyer activity. This intensified competition shows that buyers are still eager to invest in the Sutherland Shire.
Ben Pike, Director of Pulse Property, says that with more buyers entering the market, competition has intensified. “Properties are receiving multiple offers, and we’re finding more and more buyers are increasingly willing to meet or exceed asking prices to secure their desired homes.
Notable Sales:
11/87 Flora Street, Kirrawee
This property attracted an impressive 77 groups within the first four days of its campaign. With 18 contracts issued and 13 offers received, negotiations ended between two highly motivated buyers.
79 Greenhills Street, Greenhills Beach
This property, which sold for $250,000 above the guide price, stands out in an area where six out of seven listed properties have been online for over 130 days, many of which have experienced multiple price reductions. This attracted 42 inspections, with 6 contracts taken and 2 parties making offers. It truly showcased the high demand and competitive nature of the current market.
Notable Auctions:
4 Kirrawee Avenue, Kirrawee
Listed for 25 days, this property garnered 40 contracts and exceeded all expectations at auction, selling for $1,997,500 against a reserve of $1,650,000. Given the comparables in the area, the final sale price was notably higher than anticipated.
15 Layden Avenue, Engadine
Sold at auction with 18 registered bidders, we couldn’t have anticipated the final sale price of this home in late June. It sold for $2,600,000 against the previous house record for Engadine of $1,950,000.
Notable Off-Market Sale:
18 Chamberlain Avenue, Caringbah
In a remarkable off-market transaction, this property, which sold for $1,905,000 just ten months ago, resold this quarter for $2,050,000. Most properties sold last year did not see this type of appreciation so this property was certainly a stand-out.
Apartments and units are undoubtedly trending as the most sought-after properties, and new zoning stipulations are set to nourish this demand.
The NSW Government’s recent TOD (Transit-Oriented Development) rezoning rules aim to fast-track low-rise and mid-rise housing near transport hubs. At present, each local council have the power to stipulate the styles of homes that can be built in their area. However, in many local government areas, these rules don’t allow for the housing needed for the next generation that is close to transport, infrastructure and social hubs. The aim is to create the capacity to establish approximately 112,000 new homes across the Greater Sydney region, Hunter, Central Coast and Illawarra.
What does this mean for our local market?
“This initiative will significantly impact the Sutherland Shire in areas currently with R2 zoning,” Ben explains. “As more high-density housing developments likely emerge, we expect this rezoning will, in many cases, change and improve property values due to increased demand for this type of housing and subsequent improved infrastructure required.”
Following recent exceptional gains in rental yields, we have seen the rental market now normalise, but continuing to provide investors with attractive returns. The impact of inflation has led to increased competitiveness for rental properties priced under $1,100.00 per week, with this sector seeing the most activity. Another notable mention is the upper end of the luxury property market, where our investors are matched with tenants seeking their ideal lifestyle.
“Historically, 25-30% of a tenant’s income has been allocated to rent. But this year, we’ve seen tenants choosing to adjust this allocation to meet their housing requirements,” noted Fyonn Wolf, Head of Property Management.
Vacancy rates over the last quarter have remained historically low, consistently around or under 1%. Tenant activity has also been robust, with a significant increase in application submissions compared to the same period last year.
The Pulse Property Management team continues to guide clients through the ever-changing market conditions. By providing value to investors and utilizing the latest technology, to ensure tenants’ experience is smooth and seamless.
Reflecting on the growing trends we’ve seen in Q2, we’re expecting to see a free market leading into the next quarter with more homes coming to market and increased opportunities for buyers. “Stock across the Sutherland Shire is rising, with many sellers becoming buyers,” Ben shares. “We expect more buyers to enter the market helping to maintain a competitive and vibrant real estate environment.”
Framed by growing confidence, increased buyer activity, and dynamic competition, we’re excited to see the Sutherland Shire thrive. Apartments and units remain in high demand, while notable sales and auctions continue to warm and intrigue our most seasoned agents. The new TOD rezoning rules are likely to further invigorate our strong market, with property values potentially transformed and increased density reframing our local landscape. Leading up to Spring we look forward to assisting you with your real estate needs in this vibrant market.
Download your free report now to gain more insight into the value of your home or to find out if your property fares in the current rental market. Alternatively, chat with our team to discuss your current situation, whether you’re buying, selling, considering investing, or simply watching from the sidelines.
* Information provided is not financial advice.