The Hills Shire has once again proven to be an incredibly resilient market, being a standout performer and resisting price falls. During the second nationwide market downturn in three years, The Hills Shire barely quivered, with prices mostly holding firm as sellers withheld their stock. The latest CoreLogic reporting shows a 0.58% annual growth. However, we must remember that due to the data collection and reporting cycle, this data is already six months out of date!

Additionally, the devil is sometimes hidden in detail, as hyper shrinkflation of around 200% has affected new house and land offerings in this area. Home and land packages are half the size of two years ago, while prices per lot are still essentially the same. Looking at overall market price trends, you could assume the market was flat when; actually, it was shooting up all along!  

Recently, the established dwelling market has woken up and reacted to this upswing. What we can see on the ground are prices jumping 10% - 20% within the last three months. At the same time, some lenders are reducing their serviceability buffers from 3% to just 1%, freeing up borrowers to extend their financial leverage and compete in this market.

Deals of the Month

It's times like these we are most active on behalf of investors, as we snap up deals that set them up for the coming growth cycle. Here are examples of discounts we negotiated over the last 30 days.  

Hills of Carmel Land

We snapped up a fantastic 252 sqm level block without any easements on behalf of our investor. We secured the land for $570,000 at a time when the local developer was releasing comparable blocks for $825,000, making our investor $255,000 equity on the day of settlement.  

Castle Hill Penthouse

A retired down-sizer was seeking a luxury penthouse. We found him a fantastic brand-new, 2-storey penthouse with a private lift and balcony spa. The developer was selling just two coveted penthouses, asking for $2.05M, and we secured one for $1.8M. We saved this retiree $250,000 upon settlement.  

West Pennant Hills Prestige House and Land

We currently have exclusive access to newly released land in West Pennant Hills, with blocks ranging from 700 sqm to 1,000 sqm and priced between $1.7M to $2.1M. Vacant lots are almost non-existent in this suburb, presenting a rare opportunity for up-sizers or investors to capitalize on a blue-chip suburb and fantastic location. We estimate a completed project cost of $3.5M to $4M and a final valuation of $5.5M or more. The profit can be potentially capital gains tax free if you occupy it before on-selling.  

We are optimistic about this deal in light of recent listings. For instance, Sotheby's International has just listed a prestige home in this suburb, with respected sources reporting it is marketed for $10M – suggesting there is scope for this deal to deliver even greater returns.  

Are you thinking of buying, selling, or investing?

Would you value an unbiased second opinion on valuation, investment, or finance strategy? Simply reply to info@wealth360degrees.com and get started.

‍