*Source: Kathryn Welling, Manly Daily
A surprising election result last weekend and a proposed relaxing of borrowing levels for banks this week is expected to give the northern beaches property market a boost.
The Liberal win means no change to negative gearing next year. Then on Tuesday, banking regulator APRA announced it was considering relaxing the existing assessment rate for home loans.
Borrowers are currently assessed on their ability to afford repayments at an interest rate of at least 7 per cent — a buffer introduced by APRA in 2014.
But lenders are expected to soon be able to set their own assessment rates with a buffer, a move that is likely to allow homeowners to borrow more money.
Northern beaches agents are now predicting more confidence in the market, increased investor activity and the beginning of the next upward cycle later this year.
Matt Brady, of Belle Property, said his phone was ringing on Sunday from buyers keen to see what property was available.
“I think there is a sense of relief and some optimism about the future,” he said.
Property buyer Peter Kelaher, of PK Property, said the bottom of the market in most areas came six to eight weeks ago, and the market would enter into the next upward cycle over the next six months.
From there, he expected growth for up to three or four years.
Sandro Petrini, of Belle Property Manly, said he was starting to see more activity this week, with a shortage of stock, but increased demand.
Mr Petrini has just sold an old house in Freshwater for $4.35 million to a buyer who wanted a good ocean view. The red-brick house was not on the market but Mr Petrini persuaded the owner to sell. And off the back of that sale neighbours in the same street have also come to market with a guide of $4.9 million.
Number 13 Loch St, Freshwater was the top sale of the week, as reported by CoreLogic. The solid two-storey home is on 628sqm of land, with a sweeping view of Curl Curl Beach and has been bought for both that view and position.
“The market is more heated now after the election and people are wanting to know what properties are coming up,” Mr Petrini said.
FAIRLIGHT FEDERATION SALE
Patient homeowners in Fairlight got their price when they sold in Woods Pde this week.
The Federation-era house came to market in March, with an asking price of $2.595 million. It sold for $2.62 million.
Mark Connor, of Cunninghams Property, said there was early interest in the three-bedroom house then it went cold, and then eight parties showed interest.
“We had competition late last week from a range of buyers and the home sold to a family,” he said.
“People have confidence in the market and are back in and buying.”
DESIGNER'S OWN IN DAVISON ST
Movie-set dresser Briar Stanley used her design skills to renovate her Cromer home, and this week it sold for $1.675 million.
Nick Duchatel, of Belle Property Dee Why, said a couple renting in Manly bought the level home at 3 Davison St, even though they hadn't considered Cromer in their search and had been looking around Manly and Balgowlah.
“The buyer chose the property over the location, which is a huge compliment to Briar,” he said.
Young families loved the flow from the indoor to outdoor spaces, the quality renovation and the size of the kitchen.
BY GEORGE A GOOD SALE
A semi-detached house with a waterfront position sold in Avalon Beach last weekend for a figure within its advertised price range of $1.8 million to $2 million.
The four-bedroom house was listed in February. But proving again that patience pays off, the sellers held on for the right buyer and got their price in the end.
Brett Marsden, of BayView Beach Real Estate, said many buyers had been waiting until the Federal Election was over before making a move.
“A lot of people were waiting to see what would happen,” he said.
“I think we will see an upsurge in activity now after a period of hesitation.”
The two-storey duplex is on the shores of Careel Bay and sold for a fraction of the price of some of the neighbouring large waterfront properties.
GREAT OUTLOOK IN BILGOLA
One of the successful auctions of last Saturday's election day was 25 The Outlook, Bilgola Plateau.
The four-bedroom house had a guide of $1,375,000 and sold well above that.
James Baker, of McGrath Avalon, said 111 groups inspected the beach cottage with northeast ocean views, during its pre-auction marketing campaign.
“It is unusual to see those numbers in this area,” Mr Baker said.
He said he expected to see a run of investor sales in the months ahead.
“It was factored in that Labor would get into power and attack capital gains and family trusts,” he said. “The positivity of a Liberal government in power will create some stimulus.”
BIG BUCKS FOR THESE BLOCKS
Two blocks of residential land sold this week, in North Manly and Mona Vale.
No. 51 Amourin St, North Manly, a 405sqm block, sold for $1,201,000 through Laing+Simmons.
And up at Lot 2, 98 Elimatta Rd, Mona Vale, a 735sqm block of land on the high side of the road has sold for $1.17 million, through LJ Hooker Mona Vale.