PALM BEACH REAL ESTATE

With demand strengthening and interest stabilising, the outlook for the months ahead remains cautiously optimistic, particularly for homes with standout features or in tightly held pockets.

LOCAL REAL ESTATE CONDITIONS

Looking Back:

2023 began as a buyer’s market, marked by oversupply, low confidence, and continued rate hikes. Mid-2023, saw the market stabilise as listings dropped, restoring balance between buyers and sellers. Well-priced, well-marketed homes attracted solid interest, with auction clearance rates between 55–70%. In Palm Beach and Whale Beach, limited listings tempered momentum, and while prices held steady, average days on market extended from 30–40 days to 90–120. Despite a thinner buyer pool, scarcity supported values.

In early 2024, optimism returned, fueled by expectations of interest rate cuts and steady listing volumes. Properties that were turnkey or recently renovated outperformed those needing major work. Average days on market in Palm Beach and Whale Beach hovered above 70.

Winter 2024 brought renewed energy to the high end of the Palm Beach market, with standout sales including $26.25M on Pacific Road and $25M on Iluka Road. However the optimism for most of the market dampened in late 2024 with transactions proving sluggish and the buyer pool narrowing.

2025 saw the start of the year start much like 2024 had ended. Although enquiry levels were strong, inspections were down and buyers lacked urgency. The US election, followed by Australian Federal election, combined with continued high interest rates, an uncertain share market and the threat of a tariff war tempered expectations across the first 4 months. However since April we have seen confidence returning. The $8m+ segment of the market has stabilised and more affordable properties up to $4m have found a very willing buyer base. A number of important and significant sales have been completed across the winter months of 2025 marking a real change in buyer activity.

Looking Ahead:

It’s now apparent we are in a plateau phase of the market and we anticipate that this will quickly change across the coming months to see a surge in activity. Headwinds have quickly turned to tailwinds with recent interest rate cuts, the anticipation of a string of further cuts, a strong share market, distance from the recent elections, renewed strength in Sydney Eastern Suburbs prices, and a growing appetite for lifestyle and holiday homes. While the buyer pool remains selective and business confidence is cautious, the unique offering of property in Palm Beach and Whale Beach continues to attract interest. The anticipated increase in available properties this Spring presents buyers opportunities they have been waiting for and well-presented, realistically priced homes will achieve strong outcomes.

Initial buyer enquiry is stronger than this time last year and this will convert to strong inspections in the coming months. It’s clear that the Pittwater area remains a popular sanctuary for families to live and the perfect location to purchase a weekender or holiday home, given the obvious attributes the area offers combined with the ease of access only one hour north of the CBD.

Whilst some sellers are waiting for more political and economic clarity, those bringing quality, distinctive properties to market are being rewarded. 2025 will gain momentum across Spring and leading into Summer.

Whether you are thinking of buying, selling, renting or investing. Contact the team at LJ Hooker Palm Beach for all your real estate needs in Palm Beach and surrounds. (02) 9974 5999