Property prices in one well-to-do Sydney suburb have plunged $715,000 in just nine months.<\/p>\n
The median house price in Mosman, North Sydney, peaked at $5,815,000 in January but has tranded downwards since.<\/p>\n
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By June, the median price fell 12.4 per cent to $5.1 million. The 12-month decline was 9.7 per cent, or a $550,000 drop, according to Domain\u2019s latest House Price Report.<\/p>\n
Mosman is one of two mega wealthy Sydney suburbs, where the median house price is above $5m, to have experienced a decline over the past 12 months.<\/p>\n
Bronte in the east recorded a 8.5 per cent drop to $5,675,000, according to reporting by the Sydney Morning Herald<\/a>.<\/p>\n According to Dr Nicola Powell, Domain\u2019s chief residential economist, Sydney\u2019s high-end burbs have largely remained immune to the recent property price downturn thanks to supply and demand factors. <\/p>\n \u201cScarcity is the biggest driver of demand in those particular locations. There are only so many pockets of Sydney that are waterfront and offer a premium lifestyle,\u201d she said. <\/p>\n According to Domain data, some 247 homes were sold on-market in the 12 months to June. <\/p>\n In areas like Dover Heights and Rose Bay, a combined 104 homes were sold in the same period.<\/p>\n Sydney\u2019s most prestigious suburbs are small, which keeps their supply down, said Ms Powell.<\/p>\n \u201cMosman is a much larger suburb,\u201d she said.<\/p>\n Peter Kelaher, from Mosman-based PK Property real estate, said NSW state government changes to building regulations were having an impact.<\/p>\n The government\u2019s low and mid-rise (LMR) planning controls, which came into effect in 2025, allow apartments blocks up to six storeys to be built within 800 metres of town centres and transport hubs. <\/p>\n In place like Mosman, which has a long and narrow town centre, that radius reaches into the suburb\u2019s priciest real estate.<\/p>\n \u201cThere is a lot of fear and anger amongst residents \u2013 so much so that some people are selling at a cheaper price to get out of the area,\u201d Mr Kelaher said.<\/p>\n The house price plunge sweeping capital cities does not undermine Treasury modelling on the federal budget\u2019s market impact, Treasurer Jim Chalmers says as fresh data shows property values fell for a fifth consecutive month in August<\/a>.<\/p>\n May\u2019s budget scaled back capital gains tax discounts for investors and restricted negative gearing to existing investments and new builds in a bid to redirect investor cash into new housing supply <\/a>while cutting competition for first-home buyers.<\/p>\n The Treasury assumed the changes would reduce house price growth by 2 per cent.<\/p>\n But paired with higher interest rates, median property prices were last month 3.6 per cent below the record high in March, according to analytics firm Cotality.<\/p>\n Mr Chalmers on Wednesday urged against comparing \u201coutcomes from the first couple of months with the Treasury assumptions over a couple of years\u201d.<\/p>\n \u201cTreasury assumptions are over a couple of years, not the first couple of months,\u201d he told a press conference in Canberra.<\/p>\n \u201cSecond thing is: It\u2019s wrong to attribute softness in the housing market or auction clearance rates to any one factor.<\/p>\n \u201cHouse prices and auction clearance rates were already softer before the budget, and that\u2019s because a key driver of that is interest rate movements as well as developments in the economy more broadly.\u201d<\/p>\n He added that property investing \u201cis a longer-term proposition, and people are in a rush to draw conclusions about the next few years based on the last few months, or indeed movements in prices or auction clearance rates before the budget as well\u201d.<\/p>\n \u201cIt\u2019s not actually unusual over the last couple of decades to see house prices come off a bit, even though we\u2019ve had extraordinary price growth since the turn of the century,\u201d Mr Chalmers said, pointing to \u201cat least seven occasions in the last two decades\u201d where prices have fallen before rebounding.<\/p>\n