As homeowners with mortgages popped the champagne corks following the Reserve Bank of Australia’s decision to cut the official cash rate by 25 basis points to 4.1%, vendors in Sydney’s prestigious Upper North Shore suburb of St Ives also saw immediate benefits.

The rate cut has sparked renewed buyer confidence, leading to remarkable sales results in the area, known for its prestigious properties and high-performing state schools, St Ives North Public School and St Ives High School.

The day after the rate cut on 18 February, Mr Triston Lim, Director of Raine & Horne St Ives, secured a phenomenal sale. A stunning and luxurious five-bedroom residence at 7 Wirra at Close, St Ives[i], sold prior to auction for $4.2 million—$600,000 higher than the vendor’s expectations.

“This stunning property, which features a sweeping circular driveway, a sun-drenched north-facing aspect, and a magnificent central staircase, truly captured buyers’ attention,” said Mr Lim.

“The competitive buyer interest and strong sale price demonstrate the immediate impact of the rate cut on demand in our local market.”

According to Mr Lim, while ultra-luxury homes continue to attract premium prices, the real buying sweet spot since the interest rate cut in St Ives appears to be between $2.5 million and $3.5 million. This is evident in the strong enquiry levels for a beautifully designed four-bedroom family home at 22 Timbarra Road, St Ives[ii], set on an expansive 942 square metre block. 

“We held our first open last weekend, and interest is already heating up,” Mr Lim added. This dream family home is set to go under the hammer on Saturday, 22 March 

“We’re seeing an influx of buyers seeking well-positioned properties that offer ample space for family living and entertaining. 

“The fact this property is in the catchment for highly rated St Ives North Public School and St Ives High School ranked among the top 120 high schools in NSW[iii] is also a driver for upgraders with younger families.”

NSW’s low and mid-rise housing policy to reshape St Ives property market

According to Mr Lim, another game-changing policy that is set to impact the St Ives real estate market is the NSW Government’s Low and Mid-Rise Housing Plan, which was announced on 21 February[iv] and took effect on 28 February. Designed to increase housing density within 800 metres, or a 10 minute walk of transport hubs and town centres, the new policy aims to deliver 112,000 new homes across the state.

“This policy will have a major bearing on property values, particularly around the St Ives Shopping Village on Mona Vale Road and train stations such as Pymble, Gordon, and Wahroonga,” said Mr Lim.

“With townhouses and duplexes now permitted in areas where they previously weren’t, sellers are already reassessing their price expectations.”

“It’s still early days, but we’re already seeing an adjustment in the market. For instance, a property that was previously listed at $3.5 million is now being marketed at $4 million as the owner anticipates increased demand for redevelopment,” Mr Lim added.

“That said, we haven’t yet seen enough transactions to gauge the full impact of these zoning changes.”

With the combination of the recent and future interest rate cuts and zoning changes, Mr Lim anticipates a strong autumn market, with increased listings and buyer demand.

“In response, we are actively expanding our sales team to meet the growing need for high-quality real estate services in the area.” 

For all your real estate sales and property management needs in St Ives and surrounding suburbs, contact Raine & Horne St Ives at 0414 512 274.

[i] https://www.raineandhorne.com.au/stives/properties/7-wirra-close-st-ives-2075-new-south-wales

[ii] https://www.raineandhorne.com.au/stives/properties/22-timbarra-road-st-ives-2075-new-south-wales

[iii] https://www.smh.com.au/national/nsw/how-your-school-ranked-in-the-2024-hsc-20241203-p5kvj7.html

[iv] https://www.nsw.gov.au/ministerial-releases/low-and-mid-rise-policy-to-unlock-112000-homes-five-years#:~:text=The%20NSW%20Government's%20changes%20will,zoned%20land%20in%20these%20areas.