Qwerty,
Very interesting. The median’s I posted are for a Northern Beaches postcode too. Maybe its just an area that got majorly overheated?
As I’m still looking at the area as an investment opportunity I’d welcome people’s thoughts…
Cheers,
Michael.Hi Michael,
In my view the CG’s at the northern beaches has been way too hot over the last few years. I put it down to the baby boomer phenomenon. Well off north shore people are selling up and buying units/ townhouses down there for cash mainly (with a little bit left over to “party†with). These people are less affected by interest rate movement so talk of interest rises are less of a concern to them ……….more demand.
If you owned a freestanding house there you were sitting on a goldmine, as the developers would offer you just about anything to secure it. The suburbs median sale price was severely distorted too as developers would pay double the street value to get stock to develop! If you were doing your usual DD this suburb would look incredibly good hence even more demand ensued. Unfortunately where there is huge demand the developers soon create an oversupply. This is what’s happening now. Nothing like oversupply to curtail and further CG’s.
Although, don’t get me wrong, I still believe in the Northern Beaches ……….long term.Real case of my brother will show you the price volatility (and CG’s) of this suburb:
House purchased 1992 (fibro dump on 1000sq m) for $212k
Best developer offer late 2003 2.3 mil
Today approx $950k and probably take a lot of time to shift!
Qwerty,
Thanks for the info. Its the fibro shacks that I’m looking at too. There’s a heap of them on level ground in the area I’m looking which is just a block back from the main Road. I figure if I buy a few, tart them up and rent them, then I’m sitting on long term CG possibilities as urban infill catches up. I’m a long term player and am just watching the medians in this area so I can grab a few when they come right off the boil.
Cheers,
Michael.Stick to the EAST side of Pittwater Road and you’re laughing.
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