Premium Suburbs Feel Price Pinch
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Premium Suburbs Feel Price Pinch

Affordability constraints, credit crunches and a flood of listings are affecting growth.

By Terry Christodoulou
Wed, Nov 10, 2021 11:51amGrey Clock 2 min

House prices have fallen across 7% of suburbs in the past three months.

This dip is a contrast to the March peak when just 1.4% posted a decline and according to analysts is the work of a surge in new listings, affordability constraints and tightening credit conditions.

Data from CoreLogic indicates mining towns and some regional markets that experienced the strong upswing earlier in the year have also posted the largest drops.

The volatility in these markets has seen prices slump by 10.3% in South Hedland in WA’s East Pilbara region during the past three months.

House prices fell by 4.7% in Millars Well and Pegs Creek in West Pilbara while units were weakest in West End in Townsville where values fell by 6.6%, East Fremantle in Perth a 4.2%.

However, it’s not an issue isolated to the regions with some of the country’s more premium suburbs feeling the punch.

The high end of the housing market – where dwelling values were about $1 million or more.

Since peaking at 3.5% monthly growth in March, the top 25% of the market by value has slowed to 1.5% through October.

By comparison, the middle market has slowed from 2.2% to 1.7% and the lowest segment 1.5% to 1.3% during the same period.

During the three months ending October house prices in the tony suburbs of Melbourne, including Armadale, Mont Albert and Blackburn posted declines of 0.5%, 0.4% and 0.1% respectively.

In Sydney, Waverley, in the city’s coveted eastern suburbs was the weakest premium market with house prices gaining just 0.7% over three months.

According to Eliza Owen, CoreLogic’s head of research, the slowdown is due to affordability constraints and a glut of listings.

“The volatility at the high end of the market, demonstrated by the rapid decline in growth rates, suggests this segment can also expect a larger downturn in property values.”

“The housing market is well and truly past its peak for the current cycle, and it makes sense that as more headwinds accumulate, price increases will continue to slow, and more suburbs may see an adjustment in price,” she said.

“This comes back to borrowing constraints associated with the increased loan serviceability buffer from APRA, as well as banks proactively tightening lending conditions,” Ms Owen added.



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Property of the Week: 8-10 Howard St, Kew

Home to Sir Robert Menzies and Dame Pattie, this grand Melbourne estate is a piece of Australian political history.

By Kirsten Craze
Mon, Feb 17, 2025 2 min

It may be a well-worn cliche, but if these walls could talk there would be plenty of state secrets to share. The landmark residence at 8-10 Howard St, Kew was once the private residence of Sir Robert Menzies and Dame Pattie between 1929 and 1949, during the Prime Minster’s first term in the top job. He later held the role again from 1949 to 1966, making him Australia’s longest serving Prime Minister.

Historical land records indicate that the Howard St property was sold to Leonard Clinton Shaw, brother-in-law of Pattie Menzies. Robert and Patti then moved to live into The Lodge in Canberra.

The stately arts and crafts era home was built in the 1910s and has reportedly played host to a long list of dignitaries and VIP guests. As rumour has it, the drawing room of the Kew property is where Menzies crafted his iconic speeches and held many clandestine meetings.

Today the imposing five-bedroom residence, which sits on a vast 1874sq m land parcel in the coveted Studley Park precinct, has come to market through Marshall White agents James Tostevin and Chris Barrett with a price guide of $8.3 million to $8.9 million.

According to CoreLogic, the property last sold in 2018 for $7.75 million.

Beyond the expansive parklike grounds that to pay homage to celebrated Australian landscaper Edna Walling, the two-storey house is packed with meticulously maintained period features.

Showcasing the best of arts and crafts design influences, the home has a charming tuck-point brick façade, a tessellated tile veranda, coloured leadlight glass windows, dark stained wood panelling inside, as well as high decorative ceilings and cornices.

The large foyer divides the lower level into two distinct zones; big formal rooms and more casual family-friendly spaces. Built for entertaining on a grand scale, both the lounge and dining rooms rooms have original fireplaces and open out to either the undercover veranda or enclosed sunroom.

Also on the ground level, a spacious family room with yet another fireplace connects to an everyday meals area, and the contemporary kitchen comes complete with granite surfaces, a Paul Bocuse stove, an integrated Miele dishwasher, a walk-in pantry and wine cellar. A home office, or potential guest bedroom, plus a large laundry and two powder rooms round out the lower level floor plan.

Up via a majestic timber staircase, four big bedrooms have fireplaces and built-in wardrobes, while the primary suite is home to a palatial ensuite and dressing room. This accommodation level also houses two family bathrooms and a rear balcony that overlooks the grounds.

Outdoors there are multiple lifestyle features including a north/south tennis court with lighting, a unique rounds swimming pool and all-weather terraces.

Other features include an alarm, hydronic heating, a 60,000L underground tank, a garden shed, a remote double garage and additional off-street parking.

Located on the old Oakland Estate, the Menzies’ former home is close to popular eateries, Xavier College, St Vincents Private Hospital and golf courses.

 

Expressions of interest close on March 11, at 5pm for 8-10 Howard St, Kew. The home is listed with a price guide of $8.3 million to $8.9 million through agents James Tostevin and Chris Barrett of Marshall White.

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