Word On The Street | February Market Update

Throughout February, Sydney’s Eastern Suburbs property market sprang back into action. According to REA, this was “the busiest February for new listings in over a decade.”

Our Sales Team at Ray White The Woollahra Group is currently ranked No. 1 based on the number of sales transacted across our core markets of Potts Point, Elizabeth Bay, Paddington, and Woollahra. In February, our team listed 34 new properties and supported 26 vendors with property sales ranging from stunning architectural homes such as 22a Roslyndale Avenue, Woollahra, to 33sqm studio apartments.

Our team’s combination of deep market knowledge, extensive buyer and vendor relationships, and strategic marketing continues to deliver outstanding results. Our team’s current average is just 20 days, while the market average for days on market sits at 45 days for Woollahra and 44 days for Elizabeth Bay (Domain).

RBA Cuts Rates for the First Time in 4 Years – Here’s the Impact

The month of February brought us not only the first downward move in 4 years by the Reserve Bank of Australia (RBA) lowering the cash rate by 25 basis points, to 4.1%. A decision that depending on the size of your mortgage will range from putting a few hundred dollars, to a few thousand dollars back into your back pocket over the course of a year.

The Big 4, and smaller lenders quickly followed suit passing on the rate cut. PropTrack economist, Angus Moore, commenting that “this busier start to the year (reflects) strong demand, unemployment that remained low by historical standards, strong population growth, tight rental market conditions, and a more stable outlook for interest rates.”

Lisa Chadd, a busy mother of two young boys, who has been selling homes in the Woollahra area for over 10 years, has noted positive early momentum which she attributes partly to the “rate cute, we have met a fresh wave of new buyers entering the market, as well as a number of buyers who didn’t find the right home for them in late 2024. Our team met an average of between 10 and 11 groups per property at our weekend open homes throughout February”.

One of the joys of Real Estate is the truly unique properties we have the opportunity to bring to market on behalf of our owners.

February saw one of our most exciting auctions to date with the sale of 14 Rush Street, Woollahra. It was brought to the market by Jack Taylor — it was not a renovator’s dream—it was uninhabitable. Having been lived in by the same gentleman for as long as anyone on the street can remember, and with no title deeds recording a previous sale, the terrace was referred to by the press as the “hoarder’s house.”

This hotly contested deceased estate saw 24 registered bidders on the day, selling under the hammer for $2,450,000, $500,000 over reserve by Auctioneer Mitch Dansey. Mitch commented that “the sale was sure to be the talk of the street, given that many neighbours had come out to watch the auction and would be delighted with the outcome in the tightly held street. Also noting that this perfectly demonstrates that when it comes to buying property in the east, the opportunity to buy the worst house in one of the best streets (even if uninhabitable) will prove to be a great decision for these buyers”.

66 Paddington Street, Paddington

For buyers at the other end of the spectrum looking for a property they can simply turn the key and walk into, for example, 66 Paddington Street, Paddington, it offers timeless elegance for the more astute buyer.

Think cleverly designed to optimise light and space, french doors, Gaggenau appliances, butlers pantry, sandstone period features combined with contemporary marble kitchen along with 5 bedrooms and 3 car spaces. Definitely worth a viewing! Brought to market by Jack Taylor and Randall Kemp.

7 Harkness Street, Woollahra

Brought to market by Lisa Chadd and Randall Kemp, 7 Harkness Street, Woollahra is an example of the types of unique homes in the area that celebrate old and new world design, architecture, and style. This 4 bedroom home guiding $3,950,000 is an eclectic fusion of cutting-edge style and timeless period appeal resulting in a unique family sanctuary that is as brilliantly functional and luxurious as it is unforgettably chic.

1/333 Edgecliff Road, Woollahra

Another truly exceptional property that would be ideal for a downsizer or professional couple is 1/333 Edgecliffe Road, Woollarha — ‘Cullen House’. This Art Deco mansion designed by a protégé of architect Professor Wilkinson, is now a building of only two residences. This level living property encompasses a northerly aspect, water-view gardens, house-like ambience, high ceilings and two voluminous living areas, an entertainers’ kitchen, luxury bedrooms and the pet-friendly enclosed garden. Marketed by Lisa Chadd and Randall Kemp.

20/96 Elizabeth Bay Road, Elizabeth Bay

If being located closer to the CBD is more what you are after then 20/96 Elizabeth Bay Road, Elizabeth Bay may fit your brief. This impressive 3 bedroom penthouse apartment is designed for seamless indoor-outdoor living and entertaining. Located atop “Ashdown” the penthouse offers spectacular views over the Harbour and local precinct. The c1938 P&O style building was designed by celebrated architect Aaron Bolot, brought to market by Renee Cross and Ian Campbell.

Home Ownership and Buyer Demand

The Eastern Suburbs offer a unique value proposition for both owner-occupiers and investors. With the largest intergenerational wealth transfer in history on the horizon (more on that later), several underlying fundamentals make it a consistently robust market to invest and own property in. According to the ABS, across the Eastern Suburbs:

• 27.9% of homeowners own their property outright.
• 23.8% hold a mortgage (nearly 10% lower than the NSW average of 32.5%).
• 45% of dwellers are renters.
• 3% fall into the “other” category.

Interestingly, approximately 60% of buyer inquiries come from within the same suburb or surrounding areas, including Bondi, Double Bay, Rose Bay, Vaucluse, Centennial Park, and Sydney City. The remaining 40% of out of area buyer inquiries originate from the Lower North Shore, Inner West, Northern Beaches, and Upper North Shore (Source: Domain). What this confirms anecdotally is the old adage that people like to be able to drive past their property investments, and that the east remains a unique microcosm as a subset of Australia.

Intergenerational Wealth Transfer: A $5.4 Trillion Opportunity

Another seismic shift that will play a role in the local property market is the unprecedented intergenerational wealth transfer on the horizon. An estimated $5.4 trillion is expected to pass from the Post World War II Baby Boomers (Born between 1946 and 1964) to younger generations over the next two decades. NAB Head of Private Wealth, Michael Saadie, stated that Australia’s private wealth segment is the fastest growing sector of the economy.

The knock on effect of this transition is that it is predicted that it will largely be the matriarchs who inherit the family wealth and for the coming two decades, the responsibility for the financial management will likely be shared with the eldest child, referred to as the “eldest daughter effect”. For those interested in this evolving landscape, JBWere and CoreLogic have produced an insightful report titled The Growth of Women and Wealth, which is well worth a read. This generational and wealth shift is expected to play a key role in the property market, with inherited wealth providing younger Australians new opportunities to enter or upgrade across the property sector.

Helping your loved one’s Transition – Selling the family home

That said, in real estate our team work with clients through the sale of their properties with wildly different personal, financial, and family situations. Recently an elderly client who had no family locally came to us under extraordinary circumstances. His health was rapidly deteriorating and he needed to move into a residential care facility that could support this, ideally prior to selling his well located 1 bedroom apartment. Our team did a little digging on his behalf and we felt that sharing the following may be of benefit to others who are either starting the journey of considering how to approach selling the well loved family home or supporting an elderly parent or neighbour, with the same – noting that this is not financial advice, which we strongly recommend you seek independently.

A few options we came across included:

• Deferred Payment Options: Some retirement villages offer flexible payment plans, allowing residents to move in before selling their home, allowing for a more seamless and stress free transition prior to the sale coming into effect.
• Bridging Finance & Home Equity Loans: Short-term loans can fund a retirement unit purchase while awaiting a home sale.
• Superannuation Downsizing Contributions: Sellers aged 55+ can contribute up to $300,000 ($600,000 for couples) from home sale proceeds into super, offering tax benefits.
• Government & Pension Considerations: Centrelink provides an “Exempt Asset” period of up to 24 months where sale proceeds may not count toward assets testing if reinvested in a new home.
• Understanding Contracts: Retirement village agreements vary widely, so seeking legal and financial advice is crucial.

Final Thoughts – Home is where the heart is

Given that home is where the heart is, it’s an important decision whether you are looking at buying, selling, investing, or renting. It is important that you feel clear on the process, trust in your advisor, and understand all your options. For more information that may help you or your loved ones when exploring buying into a retirement village, information can be found on the department of Fair Trading website. Or reach out to our team at Ray White The Woollahra Group—we’re here to help. Get in touch with us today!