Storm damage to multimillion-dollar homes on Sydney’s northern beaches may dampen beachfront house prices in the short term but will soon be forgotten, local real estate agents say.
Two luxury properties on Pittwater Road in Collaroy were withdrawn from the market this week after heavy storms battered the area, creating king tides that destroyed up to 15 metres of residents’ yards.
One property on the market lost part of its garden while the other was unaffected. Both displayed “For Sale” signs on Monday that have since been removed.
Andrew Strong from LJ Hooker Collaroy said the market for beachfront properties in the area would struggle in the short term as a result of the damage, but quickly rebound.
“You only live once. If I wanted to see out the rest of my days on the beach, I would do it without hesitation,” Mr Strong said.
The agent pointed to the sale of a multimillion-dollar house on Ocean Street in nearby Narrabeen on Tuesday as proof the luxury market would not be deterred.
The agent of that home, McGrath Manly’s Nathan Tse, declined to disclose the final price but it’s understood the five-bedroom house sold for more than $5.5 million. Mr Tse said the buyer showed no hesitation in purchasing the property despite the recent weather.
About 700 properties at Narrabeen were evacuated on the weekend but were deemed safe for return by Monday.
“He spoke to numerous people who lived on that beachfront and also had numerous conversations with council,” Mr Tse said. “He was very well researched.”
Mr Tse’s colleague Jake Rowe said buyers knew such weather events were rare.
“These things are temporary and go back to normal,” Mr Rowe said. “It’s amazing how short people’s memories are.”
However, many of the damaged beachfront homes at Collaroy are unlikely to be insured against damage from the sea, according to the Insurance Council of Australia.
“There is insurance cover available for that type of action however not all policies do cover it,” an ICA spokesman said.
“In this instance it will be done on a case-by-case basis by each property owner’s insurer.”