The owners of the most expensive house at Forresters Beach saw the property decrease in value.
According to Domain, ANZ's head China banker Daniel Everett and his wife Lisa have never foreseen that the weekend house in Forresters Beach, which they have bought in 2008 for the record of $4.3 million, would lose value in the future. Now, the house is on the market for only $2.99 million and the effects of the great financial crisis and land tax on the second-home market are the factors to blame.
Likewise, another house that was listed in 2013 at $3.5 million on the market has been reduced to only $2.99 million. The Mossman family has reduced the asking price on their three-story beach front home two years after the initial listing.
Could this be a ripple effect of the decline of house prices in cities of New South Wales, particularly in Sydney? According to the Sydney Morning Herald, the capital city of NSW has seen the worst quarter in four years as home prices sink for two consecutive months. While the auction market in Sydney has bounced back, as earlier reported, the high auction clearance rate does not measure how the auction markets are doing in the outer suburbs of Sydney.
According to SQM Research managing director Louis Christopher, the outer rings or outer suburbs in Sydney may have high supply of homes which can pull prices down. Having said this, the same principle may be applicable to the outer suburbs in NSW. As for the houses at Forresters Beach, it is quite impossible, given their location, that they would have low listing prices than the amount they were purchased for. Unless the reason is oversupply of housing, then there may be chances that the market may just be cooling or the times are simply tough.
