The prestige markets in the key Sydney CBD precincts of Millers Point, Walsh Bay and Barangaroo continue to be buoyant with significant development in the region driving demand and growth.

In January, McGrath was appointed by Government Property NSW as the exclusive agent to market the sale of up to 50 terrace homes at Millers Point. The first tranche of eleven properties sold in excess of $33 million with the iconic ‘Darling House' selling for $7.7 million, making it the most expensive government property in Millers Point sold to date. The roll-out of the second tranche of Government owned properties is again experiencing robust buyer enquiry and interest with the next round of auctions taking place shortly.

A key driver in the demand for these properties is the point of difference they offer in an inner city market dominated by apartments. Buyers are attracted to the charm of the period homes which draw comparisons to the classic Brownstone townhouses of New York City’s Brooklyn borough.

The precinct is appealing to a wide section of the market from investors to empty nesters, young families and CBD professionals. Its proximity to Sydney harbour and the CBD make it one of the most ideally situated suburbs in Sydney.

While it’s impossible to predict price growth, the level of development taking place in Millers Point and its surrounds has generated confidence in the region which I anticipate will have a major and direct impact on property prices now and in the years to come.

In neighbouring Walsh Bay and Barangaroo, the prestige market continues to perform strongly. Demand far outweighs supply with quality homes being snapped up by buyers, with days on market at an all-time low. Many of my properties are selling within 1-2 weeks of launch with the majority of the auction properties I’ve sold over the past 12-24 months selling prior to auction. Very few homes are remaining on the market for the duration of a typical 4-5 week auction campaign.

I believe we will see continued growth and interest in the CBD prestige market in 2016. I attribute this to the many high profile developments currently taking place, as well as those on the horizon. These new buildings are achieving benchmark prices and sqm rates which have also had a positive impact on the values of existing properties. It’s fair to suggest that in some pockets of the CBD we’ve experienced around 20% growth per annum over the past 2 years. I don’t expect the same rate of growth in 2016 however I believe the market will continue to perform and show capital gains due to the increased buyer pool and high demand for a CBD lifestyle.

The activity around Barangaroo and the sales of Millers Point terrace homes has generated significant attention to and interest in this harbourside pocket. I believe Barangaroo, Walsh Bay and Millers Point will be the new hot spots and will no doubt become even more sought after by the wider market in the years to come.