Australian property price falls may have already peaked

Rapid interest rate rises might have taken a toll on property prices, which reached an all-time high last year but the greatest drops may have already happened, Ray White economist Nerida Conisbee said today.

In a country as large and varied as Australia, positions for borrowers have ranged from low debt and high income conditions in some mining regions to high debt and high interest rates in cities like Sydney, where prices have fallen by more than 10 percent in the past year.

Low unemployment and accelerated population growth are also putting greater pressure on housing demand, keeping prices steady, she said.

“Although many people are starting to feel the pinch with increasing interest rates, as well as high inflation, we are yet to see this flow through to distressed sales,” Ms Conisbee said. “Prior to the interest rate rises, borrowers were assessed on being able to pay three percent over their mortgage rate.

“We have now hit that three percent rise but banks are profitable and well capitalised. As a result they are in a good position to assist people who are struggling with high debt levels.”

Some sellers are also sitting back, with more buyers competing for those properties on the market. Ms Conisbee said property sales are down more than 10 percent on last year.

While Australian property prices may have already taken their biggest tumble, Ms Conisbee said there may still be decreases on the cards.

“While inflation appears to be coming down, we may still see more interest rate increases next year if it fails to come down quickly enough,” she said. “Unemployment is very low but is expected to start to rise next year as the economy slows.

“The high levels of uncertainty are expected to continue into at least the first quarter of 2023.”

A grand old dame who has stood the test of time, Marika is a slice of Hunters Hill heritage transformed for modern-day living.

Meticulously renovated between 1981 and 1983, with several updates since, Marika made it onto the heritage register in 1999 just in time to signal a new millennium. Today, the modernised mansion is on the market with an auction price guide of $7.5 million, marketed through BresicWhitney’s Nicholas McEvoy.

“The home is a fantastic opportunity for a discerning buyer to get a grand family estate-style property, with a pool, tennis court and grounds, for a price that’s much more affordable than expected,” McEvoy says.

Sitting pretty on the corner of Augustine St and Ryde Rd, the stately Federation residence occupies a sprawling 2472sq m block, which was once part of a 30-acre land grant handed to Frederick Augustus Hayne in 1835. In 1902, he sold it to Dr Leopold Augustus Carter, a local dentist. Two years later, Marika, then known as “Ryde”, appeared in the famed Sands Directory – the social media of its era – a symbol of its architectural significance.

Surrounded by manicured gardens with sculpted hedges, a pool and full tennis court, Marika is a prime example of Federation style with contemporary elements.

Inside, the single-level five-bedroom home showcases intricate craftsmanship, from its decorative gables, period archways and bay windows to the coloured glass panels on multiple doors and windows. Elegant formal rooms have high ornate ceilings that are a preserved nod to Marika’s past, while the more modern spaces are relaxed family-friendly zones.

Thanks to a pavilion-style addition, the L-shaped layout measures 450sq m internally and wraps around a central courtyard that plays host to the alfresco dining terrace and pool, while a wide veranda frames the original front rooms of the house.

Primary living spaces, including the dining area with integrated bar, open to the great outdoors via stacker doors and the 21st century kitchen has a large island bench and a butler’s pantry with hidden access to the triple lock up garage. There is also a dedicated media room, a library or home office, plus a separate family room with a beautiful bay window.

All bedrooms feature built-ins while the main retreat, and a second bedroom, have shower ensuites. The shared bathroom houses convenient twin vanities and a freestanding bathtub.

Beyond the interiors, Marika delivers resort amenities with a full-sized, floodlit tennis court, the pool, barbecue terrace and a self-contained studio apartment with the added bonus of Harbour Bridge glimpses.

Added extras include a converted loft storage space, a large laundry with side yard access, ducted air conditioning, multiple fireplaces, solar panels with a battery backup and modern insulation.

Accessed via Augustine St, Marika is close to St Joseph’s College, Boronia Park shops, local ovals and city transport.

Marika at 59 Augustine St, Hunters Hill is set to go under the hammer on April 26, on site at 9am with a price guide of $7.5 million. The listing is with Nicholas McEvoy and Narelle Scott of BresicWhitney Hunters Hill.

Australian property price falls may have already peaked

Hoping for further property price falls? Don’t hold your breath.

A heritage-listed Federation estate with tennis court, pool and studio, Marika offers timeless elegance and modern family living in the heart of Hunters Hill.