The record sale price of a cottage in Sydney’s eastern suburbs implies, in the opinion of real estate specialists, that there is still room for growth in the Harbour City market.
The original 1920s cottage, perched on its own tiny peninsular along the well-known Bondi to Bronte walk, has established a startling new record.
The house, known as “Lang Syne,” was on the market in November of last year with an asking price of $47–52 million. It is believed to have sold on Wednesday for roughly $45 million.
Prior to settlement, the precise sale price is subject to tight secrecy rules; selling agent Ken Jacobs of Forbes Global Properties declined to comment.
The 1,100 square metre headland plot, which was owned by the late radio legend Harry Griffiths and has been in the family for more than 60 years, provides spectacular 180-degree views of the entire coast.
It is one of the largest privately owned coastal parcels in the area that is spread across three titles and where zoning prohibits apartments.
According to RP statistics, the transaction broke Tamarama’s previous record, which stood at just over $29 million in 2021, and it withstood a 19% decline in property values in the region over the preceding 12 months.
The federal budget, which targets cost-of-living challenges, was presented the day before the record-breaking sale. It also follows months of skyrocketing interest rates, which increased mortgage stress, notably in Sydney’s eastern suburbs.
Lang Syne, according to CoreLogic Australia’s head of residential research, Eliza Owen, signals an improvement in the real estate market.
According to her, “Right now, we’re getting more data flows that point to the market entering the next stage of the cycle.”
Sydney real estate’s top quartile is outperforming the rest of the market by an additional 1.1%.
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According to Ms. Owen, the high end of the scale frequently predicts what will happen in the rest of the market.
“I guess it’s just another data point that reaffirms the Sydney market is going back up,” she added.
Sydney’s median home price is still hovering around $1 million as of April.
“Sydney home values are extremely high, and obviously this is a really high price sale as well,” Ms. Owen said of the sale of Lang Syne, expressing some optimism that the market still has room to grow.
We might observe some astute investors or owner-occupiers drawn to the market at this time because they believe the cycle of rate hikes has reached its apex.
According to CoreLogic statistics, Australian home prices have increased for two months running, suggesting that the housing market’s downturn is ending as interest rates stabilise.
In other words, when mortgage rates inevitably decrease again, house values will be under pressure.
People who can invest are currently doing so because they realise that the trough has just passed, according to Ms. Owen.
Geographically, she claims that the placement in the eastern suburbs makes sense for the high selling price because wealthy sections of the city are the first to experience indications of recovery.
It would undoubtedly be a good location for a development, Ms. Owen remarked.
The building might be used as a blank canvas for renovation or reconstruction, according to architect Bruce Stafford.
In a video for Forbes, he remarked, “There are so many alternatives accessible to whoever builds the house. You might break it into little pavilions, you could have a great, sweeping exterior.
It has the potential to become Australia’s most recognisable home.
