FRESHWATER SUBURB REPORT OCTOBER 2023

Market Report for Freshwater (2096) based on a CoreLogic suburb commissioned by Shane Spence Real Estate as of 10 October 2023

Suburb_Report_Freshwater_NSW_2096_Tu-24-2023:

SALES MARKET

House Prices: Freshwater’s median house price have recovered from their recent low in December quarter 2022 ($3,000,000). Prices for the June quarter 2023 achieved a median value of $3,300,000 ($3,525,000 for the previous 12-months). This is a strong result, just shy of the record of $3,600,000 set in the December quarter 2021. As with many other local suburbs, this recent recovery can be attributed to lower than normal stock levels, indicating that vendors are hesitant to list their properties for sale during a period of economic uncertainty. Prices have increased steadily since the RBA paused interest rate increases in April 2023. Whilst there were subsequent increases, this pause signalled to the market that the RBA was nearing the end of its policy of monetary policy restraint.

Unit Prices: The unit market in Freshwater has recovered at a much more modest rate than houses. Median prices only increased to in the order of $1,050,000 as at the June quarter 2023 ($1,000,000 for the 12-months to 31 June 2023). Well down on the peak recorded December quarter 2021, which was just below $1,300,000. Stock levels of units in Freshwater are well in line with normal market expectations.

RENTAL MARKET

House Rents: Median house rents in Freshwater have accelerated strongly $1,400 per week, which represents a new high for the suburb. In June 2018 the median price for houses in Freshwater was $1,250PW, which means house rents have increased 12.0%PA in that 5-year period or 2.4%PA. Gross rental yields for houses have however declined during that period from 2.6%PA to 2.4%.

Unit Rents: Median unit rents have reached a new high of $650PW, indicating an upward trend in unit rental prices. To provide some perspective, median unit rents in Freshwater in 2018 were $600PW. This represents only an 8.3% increase in 5 years, equating to a modest 1.6%PA increase in rents over that period. Over the same period, Gross Rental Yields fell off the cliff from December 2019 to June 2022 from 4.0%PA to 2.8%PA. Gross rental yields have since back to a respectable 3.5%PA.

The current rate of inflation in the June Quarter of 2023 is reported as 6.0% per annum.

Please note that these figures and trends are based on the data available as of 10 October 2023, and the real estate market can be subject to various factors that may influence these numbers in the future.

DISCLAIMER

The views expressed in this report are the opinion of a licensed real estate agent. This opinion is not a valuation, should not be construed to be a valuation and should not be relied upon for any purpose. Interested parties should make their own independent enquiries. These views do not relate to any particular property and do not constitute financial or investment advice. Interested parties should seek the advice of independent and qualified financial and investment advisers and make their own enquiries.

Mondegreen a misunderstood word or phrase from misinterpreting something said or written. If there is something you are not quite sure of, please feel welcome to call me for an explanation.

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