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.”

Tucked away in Byron Bay’s coveted hinterland, Whimsy Farm is a traditional rural homestead surrounded by more than 16ha of lush fertile grounds with equestrian facilities and a host of whimsical additions including a fairytale-inspired maze.

Just listed with Sotheby’s International Realty Byron Bay, agents Denzil Lloyd and Will Phillips are running an expressions of interest campaign on the glamorous getaway with a price guide of $5.25 million to $5.75 million.

The romantic estate in Federal, 25 kms from Byron Bay dates back more than a century, but has been meticulously renovated by its current owners to attain modern day dream home status.

Back in 2016, the enviable property even featured on Foxtel’s short-lived reality TV show I Own Australia’s Best Home. The picturesque parcel has also been appreciated by location scouts and has appeared in a long list of fashion brand and magazine shoots such as Country Style and Queensland Homes.

Owner Melinda Boundy, founder of boutique interiors firm Melinda Boundy Design, was instrumental in reviving the historic Federal homestead. She has described the rural property as a “a respite from the world” where she and her husband have raised their two sons over the past decade.

“I brought my boys down 10 years ago to nurture their creativity, their boyhood,” Boundy said in a recent Instagram post announcing the impending sale.

“We found our farm with its double-storey treehouse and 40 acres the perfect place for two young boys to thrive.”

In addition to hiring out the estate for formal events, Boundy said the family had celebrated several milestones at the address.

“Many parties, sleepovers, friends staying and events have been held [here]. It has seen the filming of a TV show or two, music videos, location shoots and weddings,” she added.

“Now it’s time to pass the baton to another family to share the magic and wonderment of this beautiful compound.”

Lloyd agreed that the listing is a magical estate, ripe for the picking.

“It’s a wonderland. There’s the maze, but it’s also got the treehouse, teepee, dams, beautiful established veggie gardens and it’s perfect for those who love horse riding,” Mr Lloyd said.

“It really is an oasis with plenty of classical charm as well. It’s not an ostentatious home; it’s an original Queenslander from 1910.”

Living up to its storybook name, Whimsy Farm is home to a preserved traditional Queenslander residence with five bedrooms, plus a freestanding guest cottage. There is also a separate pool house and a combined shed or office on site, all capturing scenic hinterland views.

The main single-storey residence has a choice of entertaining spaces inside and out as well as bedrooms opening to private alfresco areas. A grand kitchen and the large living room both open to a vast terrace and pool area.

In the primary bedrooms suite there is a bay window overlooking the natural surrounds, an ensuite with double vanities, and out on the covered deck an outdoor bathtub is an idyllic spot for soaking under the stars.

The playful property has also operated as a holiday rental and offers up unique bonus features including a solar-heated semi circle pool, a double-storey treehouse, a teepee, horse stables, paddocks and a an Olympic-sized dressage arena.

A true tree change destination, the Federal address is home to 10 acres of regenerated forest, eight water tanks, two lagoons, extensive raised veggie gardens and a citrus orchard.

It is conveniently located a scenic 30-minute drive to Byron Bay and 20 minutes to Bangalow.

Whimsy Farm at 711 Federal Dr, Federal is listed through Sotheby’s International Realty Byron Bay through an expressions of interest campaign closing February 20, 5pm.

Australian property price falls may have already peaked

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

Whimsy Farm is a playful period estate positioned in Byron Bay’s picturesque hinterland.