Demand for units on Sydney’s upper north shore is booming and starting to outstrip supply, according to award-winning agency mcconnell bourn.
The boutique agency has recently recorded a massive 11 unit sales valued in excess of $5.2 million, with an average of 16 days on market compared to 45 days earlier this year.
Principal at mcconnell bourn Matthew Bourn said the spike in buyer activity is predominantly due to first home buyers as they realise that paying off a mortgage can cost the same as renting on Sydney’s upper north shore.
“Our recent unit sales show the buyer profile is predominantly from a younger demographic, with 60 per cent of our purchasers being first home buyers,” said Mr Bourn.
“These buyers are looking to get out of the renting cycle by taking advantage of low interest rates which have made it as affordable to meet repayments on a home loan as it is to pay rent.
“The upper north shore is increasingly becoming the choice du jour for property purchasers who are opting for position over price – they recognise the value in purchasing a home in the area as a great long-term investment,” he said.
Mr Bourn said this high demand was also creating a 'perfect storm' for vendors, with a majority of recent sales above the listed price point.
“Our last 11 sales of two-bedroom units have sold at around 4 per cent above property market valuation. This equates to just over $20,000 extra in our clients’ pocket,” said Mr Bourn.
“Interestingly, we are also noticing investors making a return to the property market as consumer confidence rises. Some locals are using their superfunds to purchase investment property in the area.
Recent unit sales include a ground floor, two-bedroom apartment in Roseville, which was purchased just one week after listing for $535,000.
Another two-bedroom apartment located in Killara, which featured high ceilings, decorative mantelpiece and undercover car space, was purchased for $565,000 after the first open home.