It's a bonanza for Sydney's lower north shore home owners across the board

Tight stock levels and strong buyer demand are proving a bonanza for Sydney’s lower north shore home owners, with bullish results recorded for everything from apartments to ultra-prestige homes.

And as new state government taxes and tighter lending rules from the big four banks continue to dampen foreign buyer interest, it is the locals who are emerging as the big spenders this year.

On Friday night, less than three weeks after it first hit the market, a local buyer snapped up the historic Mosman mansion of investment banker Peter Hofbauer for about $16 million, well ahead of the initial expressions of interest deadline set for later this month.

It is the third highest sale result across the lower north shore this year, topped only by the $16.5 million waterfront sale in Cremorne by investment banker Campbell Lobb and the Neutral Bay mansion of recently retired Origin Energy chief Grant King and his wife Jenny for about $16 million.

McGrath’s Michael Coombs and Michael Rava were unable to reveal the exact result but confirmed it sold within its $15.5 million to $16 million guide after competitive interest from half a dozen buyers, only one of whom was a foreign national.

A source tipped the result at $16 million.

The grand Federation Queen Anne residence on a double block of 2244 square metres set a non-waterfront record for the suburb in 2001 at $7.15 million when the former Babcock & Brown executive purchased it from dentist Gizelle Kaunitz and her husband Andrew.

But it’s not just mansions in Sydney’s lower north shore being snapped up by eager buyers.

“The strength of the Sydney market this year has been the prestige market and it’s not just the big houses but prestige apartments too,” said Domain chief economist Andrew Wilson.

In Cremorne Point, a spacious three-bedroom apartment with water views and a small garden but no carpark, surprised neighbours when it sold for $2,020,000 at auction on Saturday morning, well above the suburb’s median unit price of $1,090,000.

The oversized 168 square metre apartment had generated interest from young families, older couples downsizing and investors looking for something their children could also live in, according to selling agent Ivan Resnekov of Century 21 Resnekov Realty.

But it was clear, as a crowd of 35 gathered on the lawns behind the art deco block at 2/18-20 Cremorne Road, that a battle was unfolding between just three groups of middle-aged buyers. A couple from the upper north shore wasted no time with an opening bid of $1.6 million.

The eventual buyer, a Sydney man who didn’t want to be named, didn’t bat an eyelid as he found himself a comfortable spot on the grass to sit on. From there he raised his paddle with a counter bid of $1.7 million and it was back and forth between them and a late entry bidder until bidding slowed down at the $2 million mark.

“It was a nicely-paced auction. Normally there’s a long pause at the start, but the first bidder got started straight away,” auctioneer Brian Cannan said.

“The buyer was cool, calm and collected but even he was reaching his limit towards the end.”

It was one of 831 homes up for grabs – the second biggest auction day so far this year – but it still fell short of the 1015 properties listed over the same weekend last year.

By Saturday evening Domain Group had collected 595 results and put the clearance rate at 77.0 per cent.

“The Sydney market eased reflecting more choice for buyers…with more robust listing numbers also set for coming weekends” said Domain chief economist Dr Andrew Wilson.

An elderly resident, Maureen Johnsen, who has been living in the same block for 35 years, was surprised with the strong result.

“I thought it would go for around $1.8 million. So going for around $2 million … it only makes me happy.”

She said Cremorne Point was a hidden gem within the lower north shore.

“People don’t realise how close you are to the city but at night you think you are in the country.”