Buyer demand drives upward trend in home prices

An unexpected rebound in home prices across Australia’s biggest cities in the past few months shows no signs of slowing, with intense buyer demand driving another bumper weekend of auction activity.

An early start to the traditionally busy spring selling season has continued to strengthen and auction volumes on Saturday were up 12 percent on the previous week, according to data house CoreLogic.

“The volume of auctions has been rising through the second half of winter, with activity at the weekend up 27.8 percent from a month ago, and 22.1 percent higher than this time last year,” CoreLogic research team lead Duane Kaak said.

Even so, new for-sale listings remain well down on previous years, forcing a large pool of hopeful buyers to part with more cash to secure a home.

In Sydney, the weekend’s preliminary auction clearance rate is sitting at 73 per cent, with 305 successful sales from 419 results reported so far.

In Enmore in the city’s inner west, a pair of run-down neighbouring terraces on one title sparked a feeding frenzy among prospective buyers.

The successful bidder for 43 and 43a Edgeware Rd was 15 minutes late to the action but quickly made up for lost time, paying $1.918 million for the deceased estate. The sale price was well above the reserve of $1.4 million.

Meanwhile, a five-bedroom house at 4 Alsace Ave in Bardwell Valley in Sydney’s southwest fetched $2.15 million – some $550,000 above reserve, with five bidders battling it out.

Melbourne’s preliminary auction clearance rate of 68 per cent is based on 346 reported results from 704 scheduled sales.

A three-bedroom cottage at 10 Mckeon Ave at Pascoe Vale South in the northern suburbs drew strong interest, selling for $1.64 million – $190,000 above reserve.

It was the first time the retro wonder had come to market in 70 years.

Brisbane’s preliminary clearance rate of 59 per cent represents 17 sales from 29 reported results of a total 64 scheduled auctions on Saturday.

A prestige property at 41 Mayfield St in affluent Ascot fetched a whopping $4.03 million after swift bidding from nine parties.

Despite economic uncertainty, high interest rates and a cost-of-living crisis, high demand and low supply are putting upward pressure on property prices across the major capitals.

Home values across the country have recovered much of the declines seen throughout 2022, with a 2.79 per cent increase since December, according to the latest PropTrack Home Price Index.

“Interest rates were the primary driver of home price falls seen for much of 2022, but there are other factors – like the supply of properties for sale, labour market conditions, rate of immigration, home building, state of rental markets and interstate and regional migration –that also affect price growth, as well as how it is distributed across the country,” PropTracksenior economist Eleanor Creagh said.

In July, Sydney’s median home price rose 0.28 percent to $1.04 million and is 3.16 percent higher year-on-year.

Melbourne values remain flat, with a modest 0.01 per cent lift last month taking the median to $805,000, while in Brisbane, the median of $742,000 increased 0.37 per cent, up 1.98 per cent on July 2022.

“Although total stock on market has increased slightly, the flow of new listings has remained soft in recent months, leading to increased buyer competition and solid selling conditions with prices continuing to lift.”

A landmark beachfront home in Balgowlah Heights has sold for $17.5 million, setting a new residential record for the tightly held Northern Beaches suburb.

The six-bedroom residence at 30A Beatty Street changed hands on July 21 through Clarke & Humel Property, eclipsing its own previous benchmark by $5.7 million.

The property last sold for $11.8 million in October 2017, a result reported as a Balgowlah Heights record at the time. Its latest sale represents an increase of more than 48% in almost nine years and places it well ahead of other known sales in the suburb.

It is not the first time the address has reshaped local expectations. The home sold for $3.15 million in 2013 before extensive alterations and additions transformed it into the substantial trophy residence seen today. From that transaction to its latest sale, its recorded value has increased more than fivefold.

Occupying 1,074sqm in an exclusive no-through pocket, the property backs directly onto the golden sand of Forty Baskets Beach. A gate at the bottom of the garden opens to the beach and surrounding foreshore walks, creating the kind of direct harbour access rarely available on the Northern Beaches.

The home’s elevated, cascading design takes full advantage of its position. Walls of glass frame panoramic views across North Harbour, while a succession of indoor and outdoor living spaces follows the slope towards the water.

Arrival is suitably dramatic. The four-car garage—complete with harbour views—is connected to the residence by a lift. From there, a covered walkway leads through tropical gardens to an entrance framed by a koi pond, stone flooring and soaring ceilings.

At the centre of the home is an expansive living and entertaining level. A stone kitchen fitted with Miele appliances steps down towards the view, incorporating an integrated refrigerator and freezer and a built-in breakfast bar positioned to overlook the harbour.

The adjoining formal dining room opens through a bi-fold wall to a landscaped side courtyard. A substantial living room, anchored by a gas fireplace, also connects to the main terrace, creating a continuous relationship between the interior, gardens and water.

An electrically operated roof allows the terrace to be used in different weather conditions, while automated internal blinds and ducted airconditioning add to the home’s extensive technology and comfort features.

Outside, the entertaining areas continue around a swimming pool and spa. A built-in barbecue, steam room and generous terraces give the property the atmosphere of a private resort, with the beach only steps away.

The accommodation has been arranged to suit a large or multigenerational household.

Four bedroom suites occupy an upper level, while the main bedroom commands an entire floor. The private retreat includes sweeping harbour views, a large walk-in wardrobe and a luxurious ensuite.

On the lower level, a billiard room and bar are accompanied by two bedrooms and a bathroom. A separate self-contained studio provides further flexibility for extended family, guests or live-in staff.

The residence also includes a private home office, yoga room and extensive storage—features that allow it to function as both a secluded family home and a large-scale entertaining destination.

Sustainability and energy resilience have also been incorporated through solar panels and a Tesla battery.

Despite its rare waterfront setting, the property remains close to the conveniences of the lower Northern Beaches. Bus services are approximately 450 metres away, while Balgowlah Village, local schools and North Harbour Reserve are within easy reach. Manly is about three kilometres from the home.

The sale underlines the scarcity premium attached to Sydney homes combining substantial land, direct beach access and uninterrupted harbour views.

Balgowlah Heights has a median house value of about $4.23 million, according to PropTrack data displayed on realestate.com.au. At more than four times that figure, the Beatty Street result sits in a different tier from the suburb’s conventional prestige market.

Its price is also $6.65 million above the $10.85 million paid for neighbouring 30 Beatty Street in December 2025.

While conventional luxury features helped support the result, the defining asset is one that cannot be readily replicated: a private rear gate opening directly onto Forty Baskets Beach.

Buyer demand drives upward trend in home prices

There’s no sign hot property markets will cool anytime soon