It’s been a cracking start to the year for the Upstate team. Strategic planning last year propelled us with great momentum into the new year, setting us up to beat our competitors to market come January. This positioned us as the number one listing agency on the Northern Beaches for the month and helped us achieve a 33% increase in sales on the same period last year.
Looking ahead, the foundations are set for another unbelievable year in our tightly held, highly desirable pocket of the Northern Beaches. There’s a palpable sense of optimism in the air: enquiries are up, inspections are up, and interest rates are tipped to go down. Buyers are entering the market with a renewed sense of confidence, eager to transact and determined not to miss out.
Let’s take a closer look at the market, the year ahead, and the strong results our team achieved over summer.
What’s UP with the Sydney Property Market
Auction Clearance Rates
According to CoreLogic data, the first major week of auctions this year was the second biggest start to the auction season since CoreLogic records began in 2008. Sydney’s preliminary clearance rate sat at a very healthy 76.3%.
Taking a look at sub-region statistics lifted from the same report, it’s brilliant to note that the clearance rate for the Northern Beaches during the same period was 82.4% – the strongest result of any region in Sydney.
House Prices
According to the same data, the average sale price for a house on the Northern Beaches steadily increased from $2.4m in April 2023, to $2.55m in December. In the same period, average days on market plummeted from 41 to 35 – both key indicators that our local property market is continuing in a positive direction.
Interest Rates
With the new year, comes a new schedule for the RBA. The decision to hike, pause, or cut interest rates will occur eight times a year rather than 11. According to Philip Lowe, the former RBA governor, meeting less frequently will allow the board more time to evaluate the latest economic indicators before making a monetary decision.
This move has instilled confidence in homeowners and hopeful home buyers, with the knowledge that unlike last year, they will not be up against back-to-back, monthly rate hikes. The next rate decision will be made in the third week of March.
It is expected that the RBA will keep the cash rate on hold for now, before moving into a downward cycle in the second half of 2024. All four big banks predict rates will be cut from September onwards, with CBA forecasting the cash rate will sit at 2.85% by June next year.
Upstate’s Results
Residential Property Sales
Our team is dedicated to delivering exceptional outcomes for our clients, and our January-February results are a testament to that commitment. Our team listed 23 properties and sold 12 in January, 41 listed and 34 sold in February and 100% clearance rate for the last 3 weeks of February.
During this period, the average sales price our team recorded was $1,680,166. Our highest sales price, achieved by two properties (25 Pittwater Road Manly and 306/44-50 Ocean Street Narrabeen), was a very impressive $4,375,000 – the latter setting a suburb record for Narrabeen.
Leasing
With a 15% market share on the Northern Beaches, we’re thrilled to retain the title of number one listing agency in the area. The Upstate team leased 108 properties over summer and responded to a massive 4,410 enquiries.
The average asking rental price for houses is at an all-time high of $1648.00 per week, while apartments held steady at $840. In terms of rental yields, apartments are sitting at 3.8% and houses at 2.6%.
According to SQM research, the rental vacancy rate on the Northern Beaches is sitting at 1%, down from 2.2% in June 2023. The current vacancy rate in our area is slightly lower than the Sydney average (1.3%) – proof that the Northern Beaches rental market is continuing to outperform many other areas across the city.
Commercial
Confidence in the commercial real estate market is back and stronger than ever, bolstered by stable interest rates and simultaneous decline in inflation.
The leasing sector is particularly robust, with a high volume of transactions recorded over the summer period. This same level of confidence hasn’t directly translated into sales, however, enquiry volume remains strong and we expect to see an uplift in transactions as we move into 2024.
Vincent West, Commercial Licensee/Director in Charge notes, “We expect the confidence to keep building momentum and are mindful that typically the Northern Beaches is quite a shallow market for many of the commercial property types and can flip in either direction in a heartbeat”.
With 50% market share for sold properties on the beaches, our commercial team is committed to consistently meeting and exceeding client expectations.
For more information on the current Commercial landscape, click here.
Projects
When it comes to project developments, Upstate remains the clear leader in the area with a 75% market share.
Our projects team had an extremely successful summer selling 17 properties, and are in a position to meet buyer demand with 660+ properties currently available for sale across Sydney, Canberra, and the Gold Coast.
Check out the Upstate Projects page to see our complete list of available projects right now.
Looking ahead, the team is set to deliver 4 highly sought after development projects this year:
- Forest Lodge in Warriewood
- Bianco Balgowlah
- Quartet in Bayview
- Omaroo in Church Point.
If 2024 is the year you’d like to make your next property move, our team of real estate experts can make your Northern Beaches property goals come true. Speak to our team today.
Summer Sell Out
We launched our Summer Sell Out campaign to gain momentum into the new year by building competition among buyers to ultimately deliver optimal outcomes for our vendors.
The campaign was a huge success, allowing our sellers to beat the competition to market, capitalise on online buyer activity during the holiday period, and reach a new pool of buyers.
Our team was the number 1 listing agency for the period, generating an impressive $118 million in sales and achieving a solid clearance rate of 82% over 3 massive auction nights.
We engaged with over 1,300 buyers, received over 5,400 enquiries, and this momentum has set us up for a strong Autumn ahead. See the wrap video below:
We look forward to implementing similar campaigns throughout the year to continue to support the best results for our vendors.
In The Office
Behind the scenes, the Upstate team has been balancing their hard work with a commitment to wellbeing and personal growth.
We kicked off the year with our Level Up 2024 Sales Conference, a day dedicated to inspiring the team through high-performance coaching and insights from industry leaders.
If you’ve been thinking about a career in real estate or you’re already in real estate and looking to advance your professional trajectory, join our growing team of over 70 staff.
You can find a full list of available roles here.
Partnership Announcement
In a huge win for our business, and by extension our clients, we are thrilled to appoint three new partners to our senior management team. Initially led by founding directors Peter Mosedale and Lachlan Yeates, Upstate welcomed Vincent West to oversee the commercial aspect in 2012. Now, the team has added Meschell Howarth (General Manager), Paul Ferrari (Head of Project Sales) and John Hall (Senior Business Development Manager), bringing Upstate’s total count of business partners to six.
“With six partners in the business, we’re bolder, stronger, better and poised for greatness” explains Peter Mosedale.
“Each of us knows the business very well and we know the community. Our individual experiences will support the continued growth of Upstate and deliver the best business we can for our clients” adds Meschell.
Is 2024 The Right Time To Make A Move?
With homeowners feeling increasingly optimistic about the property market, we predict there will be more confidence in moving forward with property decisions in 2024. The positive shift in sentiment and prospect of interest rate cuts is a strong drawcard for homeowners who have been on the fence about selling.
The data over the last three months tells the same story. Enquiries are up 5% and views on our website listings alone are sitting at a very impressive 11,380. That is to say: there’s competition, there’s fresh new interest, and buyers are no longer hesitating – driven by an acute fear of missing out.
If you’d like to make your next property move with confidence, speak to our team today and find yourself in a better place.
We look forward to chatting with you soon!
The Upstate team
