The Lower North Shore continues to lead Sydney’s housing market expectations, with new figures revealing that local property asking prices have risen at a far stronger pace than the city average over the past year.
But what does that really mean?
According to SQM Research, the average asking price for a house on the Lower North Shore reached $4.03 million as of 17 November - a 23.0% increase year-on-year. In comparison, the Sydney-wide average sits at $2.1 million, reflecting a more modest 7.6% rise over the same period.
It's important not to confuse asking prices with sale prices - they are fundamentally different when assessing a market's performance and the best strategy for a successful sale.
What factors do we need to consider when looking at asking prices in the Lower North Shore?
- The large number of high-value prestige properties for sale in the Lower North Shore vs greater Sydney – this will naturally lead to an overall higher average asking price and skew the data, particularly when listing volumes are lower than average, which is currently the case.
- Are asking prices in the Lower North Shore showing a delay in matching buyer expectations/budgets? – With median days on market between 50-70 days, it would appear there is a mismatch between vendor expectations and market response that will be reconciled over time.
- How do asking prices compare to days on market and eventual sale prices? - There is often a reference to “vendor discounting,” where sales ultimately occur below the original asking price. In reality, this reflects vendors aligning with the market rather than genuinely discounting.
This result reflects the continued high prices achieved of the top end of the market, with premium sales helping to lift average prices across the region. The Lower North Shore continues to attract high-net-worth buyers seeking quality homes, lifestyle amenities and long-term capital security. The area’s overall performance, therefore, is being shaped by sustained demand for prestige properties rather than broader market movement – further reinforcing its resilience compared to other parts of Sydney, even with the realignment of asking prices that is currently being observed.
So what does it all mean to a vendor?
It’s critical to balance all market data when implementing your sales strategy.
Strong asking prices demonstrates continued demand for quality homes on offer in the Lower North Shore. When assessing your price expectations, you need to consider all of the factors currently in play in the market, including days on market and “vendor discounting “. There is a big difference between meeting the market upfront to create strong buyer interest and competition and “not being in a hurry to sell”.
A good agent will always protect your interests and provide you with up-to-date market knowledge as well as the optimal strategy to achieve the best price in the current market. The ideal campaign will create demand and, in an informed market when perspective purchasers have a good feel for current values, this can only be achieved when a property is attractive to as many people as possible.
Whether you’re upgrading, downsizing or investing, R&W Mosman/Neutral Bay provides informed advice and trusted expertise in Sydney’s premier suburbs. Contact us on (02) 9969 7622 or info@rwm.com.au for a confidential discussion.