When comparing Palm Beach to the greater residential Sydney market and even suburbs directly in close proximity such as Mona Vale it is important to consider that Palm Beach is a small narrow and isolated pocket of the Sydney Northern Beaches, both geographically and demographically. According to Core Logic in 2011 the population of Palm Beach was 1,598. This population grows substantially with tourists in the holiday seasons.
The potential market for property in Palm Beach is thin due to the distance from the CBD and the high relative median prices in the area. Many properties take several months to sell. The majority of the population are 45-65 years old and many homes are purchased as holiday houses for those working and living in the city/eastern suburbs.
Our interviews with sales agents servicing the area is that Palm Beach operates independently from that of the other Sydney Northern Beaches and Sydney Markets. Their opinion is that the market has been flat and that properties take longer to sell, this is in contrast to other northern beaches suburbs like Mona Vale which have experienced relatively higher growth in 2014 and 2015 then Palm Beach.
As per core logic RP Data Palm Beach saw a negative capital growth for houses in 2014 and 2015 respectively at -2.4% and -8.8%. In comparison Mona Vale house prices increased in 2014 and 2015 by 3.5% and 18.6% respectively. Pittwater Local Government Area saw 2014 and 2015 grow by 11.9% and 16.4% respectively.
As per RP Data Core Logic, Households in Palm Beach are primarily childless couples and are likely to be repaying over $4,000 per month on mortgage repayments. In general, people in Palm Beach work in a professional occupation. In 2006, 71.2% of the homes in Palm Beach were owner-occupied compared with 71.3% in 2011.
When we visited Palm Beach recently to perform a current market value for family law purposes we observed that many houses that were recently purchased had undergone or were undergoing some renovations to add the personal style of their new owners. Further a large proportion of homes in Palm Beach are architecturally designed and subsequently built and take advantage of the elevated topography and coastal setting and views of the peninsular. Agents report that many owners may be emotionally attached to their properties and are willing to hold our longer for the right buyers.
Valuing a property in Pam Beach for current market value was more challenging than in other more straight forward Sydney suburbs. Particular care needs to be taken when considering salves evidence and analysing transactions having particular regard to aspect, views, and improvements such as pools. Location factors play an important part in land value in palm beach with property with direct beach or water access having different value patterns than those with elevated views but further from the beach. Once thing was certain, our valuers did enjoy visiting Palm Beach and having a coffee there and even if this market is not for you a day visit is surely in order, it’s a beautiful place.