Market update for Neutral Bay
Now the dust has settled on the new year, it’s time to look into the state of the Neutral Bay property market.
Where do things stand for this part of Sydney, and what will the property market look like as we progress through 2024?
The bigger picture
The first and biggest news in the property market is the slowdown in interest rate increases.
While it may be another year before rates start going backwards, the Reserve Bank of Australia (RBA) left interest rates on hold in February. This is due to inflation beginning to ease across the country and may help to increase buyer confidence.
Even despite rates being high, the market performed strongly across Australia through 2023. Across Australia, the home value index (HVI) rose by 8.1 per cent and in Sydney by 11.1 per cent. This is due to a lack of stock, interest from international buyers and buyers pushing prices up in places like Perth, where the market has been slow for many years.
Neutral Bay performance: 2023
Neutral Bay played a strong factor in keeping Sydney’s overall growth high, with an impressive median house price growth of 10.9 per cent over the last 12 months.
The average price for houses in Neutral Bay is now sitting at $3,395,000.
While units and apartment prices didn’t fare as well last year, with a slight drop of 0.7 per cent in average values over the last 12 months, the market for these smaller properties still remains steady, and the average price is a more than comfortable $1,132,000.
2024 forecast for Neutral Bay
Last year was a seller’s market and 2024 generally looks set to remain that way.
Immigration was up considerably in 2023, and the Australian population hit 27 million with 2.4 per cent growth in 2023. That means that the number of people who moved to Australia last year was greater than the entire population of Tasmania.
Naturally, all these people need places to live. This was a driving factor in Australia’s property market growth over the last 12 months. While population growth is not set to remain at this high a figure, with some government policies attempting to slow down the influx of immigrants, there is no doubt that more people will be arriving on Australian shores and looking for property.
Add to this the growth in international investors, and predictions are that the market looks set to remain strong in 2024 and to remain in the seller’s favour. However, there is a push against international investors that could see them fall away in the coming years (they’ll be under pressure if they purchase a house but nobody is living in it, or if they look to buy existing properties rather than investing in new developments).
To make up for the slowdown in international investors, though, the migration to the regions that was spurred by the pandemic has reversed, with reports saying Aussies are now flocking back into capital cities. As always, people want to live in prestigious urban hubs like Neutral Bay, which is why this suburb remains sought after.
The reason Neutral Bay is a ‘goldmine’ for property owners is lack of development. While many other parts of Sydney are set to boom with high rise apartments as the State Government seeks to resolve the housing crisis, suburbs like Neutral Bay, Cremorne and Mosman will be largely unaffected.
What does it mean for Neutral Bay homeowners?
There’s almost no doubt that 2024 will be a good year to sell because lack of home and apartment stock is still fuelling demand and pushing prices upwards.
However, while the market remains strong, signs are indicating that it may steady in the not-too-distant future. The massive growth that was seen in many lower north shore suburbs in the last years of the pandemic has slowed, and the market may be gradually shifting.
Right now is the perfect time to act, with autumn traditionally being a busy selling season in the area. If you’d like some advice about how much your home is worth and what your sale strategy might be, get in touch today.
Ready to sell? Speak with HPA, your local property experts, today.
