Sydney suburbs leading market recovery are concentrated around Newtown and Mosman
Areas among the first to be hit by the slump in property prices a couple of years ago are now at the vanguard of the bounce back.
Pockets of the inner west, northern beaches and lower north shore — where sellers have been struggling to attract prospective buyers — have recorded the biggest increases in value in the past three months.
And experts have pointed to the Coalition’s federal election victory as a key reason for the upturn in fortunes, saying this had spurred buyers into action by removing uncertainty over the impact of Labor’s negative gearing reforms.
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Buyers who had been sitting on the fence are now gravitating towards regions where prices have become more affordable and therefore attractive, with the inner west a particular draw.
CoreLogic data shows that last week the area had Sydney’s strongest auction market, with almost nine in every 10 homes going under the hammer being sold.
This stands in stark contrast to the end of 2018 when clearance rates dropped to around 55 per cent.
Realestate.com.au research reveals Newtown is at the centre of the inner west’s recovery and this demand has spilt into neighbouring Erskineville, Alexandria, Dulwich Hill, St Peters, Redfern and Petersham, recording price rises of 1-9 per cent.
SQM Research director Louis Christopher said areas with big price falls during the downturn would now appeal once again to buyers.
“The inner west was hit particularly hard by the downturn,” he said, adding that demand for homes in the $1.5 million-$1.8 million range took a battering due to a squeeze on credit.
McGrath-Newtown agent Adrian Tsalavas said the inner west had a history of rebounding early because people wanted to buy as close to the CBD as possible while prices were lower.
“There is an expectation that now is a very good time to buy,” Mr Tsalavas said.
The shift has given sellers reasons to smile. Shaun and Mel Tatnell recently listed their Erskineville unit for auction last week and were surprised to get about $50,000 above what they expected.
“It was a great feeling,” Mr Tatnell said. “We were extremely nervous and didn’t think it would sell but there was so much interest we ended up moving the auction forward.”
Mosman is at the centre of a similar resurgence on the lower north shore, with prices in surrounding areas like Clontarf, North Balgowlah, Seaforth and Cammeray growing at about 1-5 per cent.
Values in Crows Nest, Wollstonecroft, St Leonards, Milsons Point and North Sydney also rose.