Sydney's Northern Beaches update

Hi Guys,

As most of you would be aware, I am a big fan of the Northern Beaches and have my development site in Mona Vale so keep an eye on this area daily. Here's some interesting articles that indicate to me that this area will do extremely well in the next Sydney boom set to start in the next few years. Already the Northern Beaches have recovered median prices to more than the 2003 peak in most postcodes. Palm Beach properties never looked back and are still setting records daily.

State by state guide to the market

realestate.com.au said:

Coastal areas, both suburban and within two hours of the CBD, continue to be among the favoured locations. Prices in traditional beach hot-spot Palm Beach have risen 15.5% each year for the past 10 years compared with 9.4% for Sydney.

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Boom and Bust on the home front

domain.com.au said:

The north side has fared better than other parts of the city since the market peaked in late 2003, he says. "If you go up to houses at Palm Beach it's zooming along, at Mosman, fine, but it's not like that in many other parts of Sydney."

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But for the investors interested in properties anywhere on the Peninsular and at a more affordable price point than Palm Beach, here's some interesting information:

Rental properties dissappear of the books - Manly Daily

Manly Daily said:

Desperate tenants are offering up to $50 a week more than the advertised rent while some agencies report less than half a per cent vacancy rate on their books.

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Manly Daily said:

``We had a property in Dee Why that was for sale for $575,000 and we advertised that it could get $550 a week in rent . . . that same property has just let for $600 a week,'' he said.

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Although the Sydney vacancy rate is reported at around 2-3%, suburbs on the Northern beaches are less than 1% vacancy rates and would-be tennants are getting desperate.

There was another article in last weeks edition which showed how much development was going on in the area based on council approvals. It showed that we're back to over a billion dollars in residential approvals in 2005 after dropping off following the 2003 peak. This is back to 2002/2003 levels and growing. So, looks like a lot of new stock coming onto the market. A lot of this is minor knock down and rebuilds, but a lot is big residential developments like Warriewood Valley. There's also a lot of new Commercial stuff going up in Mona Vale.

The Northern Beaches are on fire, and there is a real buzz in the area. Everyone you talk to can feel it from REAs to other locals to the guy in the coffee shop or the checkout chick at the new Pittwater Place commercial centre in Mona Vale. There's also a brand new SupaCentre just opened up in Belrose, and a lot more commercial stuff coming online.

Exciting days! Methinks Sydney's recovery has started and the RBA's November rate-rise won't slow the Northern Beaches. Might delay it six months or so, but that's it.

Cheers,
Michael.

Hi Michael

Well done looks as though you have positioned yourself beautifully! How are things progressing on the development?

Sparky

Hi Sharon,

Moving slowly at the moment. We've been deflected onto other things for a few weeks so have not moved much on the townhouse development front. I have been talking to the banks and some quantity surveyors to ensure my costings are accurate. My next step is to take a detailed survey to my selected architect and get some initial sketches done and taken to council. I'll post an update with sketches attached when I get to that stage soon.

Thanks,
Michael.

Mona Vale 9.1% in last 12 months

Hi guys,

Just a quick update on Sydney's Northern Beaches. The Manly Daily (Saturday March 3 2007 issue) showed that Mona Vale median house prices grew by 9.1% for the last 12 months as attached below from $806,000 to $879,000. So, the Northern Beaches are still powering along despite the perception that Sydney is going through a house price correction. I obviously track Mona Vale closely as this is where my MUH townhouse development site is located.

Just FYI for anyone else watching the beaches (and I know there's a few from some other posts and PMs I get).

Cheers,
Michael.

Hi guys,

And here's an update on North Narrabeen out of the April 21st issue of the Manly Daily. You can access that issue and all the back issues at the link in the previous post. North Narrabeen certainly isn't moving yet. Just inflation level growth over the last 12 months. But that median price makes it definately the sleeper suburb on the Northern Beaches. The price creep from the last boom stopped at Collaroy which is the next suburb south from Narrabeen. If the next boom kicks the medium density growth further north then it will pick up Narrabeen and lift North Narra by association. Its already a great spot with lifestyle options galore: beach, lake, cafes, restaurants etc.

And here's an article in today's Manly daily.

Manly Daily article said:

EAGER home-hunters are paying almost $300,000 over reserve prices as the peninsula property market rockets out of hibernation.

In the past few weeks agents report numbers of interested parties at inspections have jumped from an average of 20 parties on a Saturday to more than 50.

Some are prepared to put down deposits on properties before they have even seen them. An expatriate working in Asia bought three waterfront properties over the phone for his children.

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Just keeping you all posted. Happy days for those of us holding northern beaches stock.

Cheers,
Michael.