What are property prices near Sydney’s premier beach, Manly?

“Half the people are already locals who know how great it is and are looking for an upgrade to get closer and closer to the water, the other half are people who have visited or read about Manly,” he said.

“It’s the people who want the ultimate Australian dream,” he said. “You have one of the best surfing beaches… 200 meters away you have one of the best ports.”

Shoppers need deep pockets to shop in Manly.

Clarke said entry-level homes in Manly have sold between $3 million and $4.5 million, high-end single-family homes between $5 million and $10 million and premium properties for over $10 million.

He has a large three bedroom waterfront apartment listed at 1/45 The Crescent Manly with a target price of $9 million to $9.9 million.

The most expensive homes line Bower Street, where last year a suburban record of $23 million was set for a near-original six-bedroom house that has since been demolished to make way for a new home.

“If you step onto Shelly’s beach, a knockdown can cost $20 million and the same type of block a few blocks down could cost $5 or $6 million, the view and proximity make a massive difference,” Clarke said.

Elsewhere, a five-bedroom house in original condition on a 400-square-foot block overlooking the beach was auctioned for $21.5 million last year, while a five-bedroom house a 10-minute walk away on Wood Street was sold in a somewhat larger block located near Little Manly Beach, sold in January for $4 million.

Clarke said rising interest rates hit levels last year when borrowing capacity was reduced, but demand is now at its strongest in a year as buyers have adjusted to higher interest rates.

“There was certainly a downturn from May to December last year and every rate hike was a hammer blow to buyers’ value proposition or worse [borrowing] Capacity … while people have now factored in rate hikes,” he said.

PK Property’s managing director and buying agent, Peter Kelaher, said freestanding homes priced at $4 million have become scarce. Entry level detached homes near the beach brought in approximately $5 million.

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For unit buyers, entry-level two-bedroom homes with parking start at around $1.3 million, while a renovated two-bedroom home closer to the beach would range from the high $1 million to the low $2 million , he said.

Kelaher has seen strong demand from downsizers on the north coast looking for apartments with great views available at a significant premium.

“Properties with a view require another minimum of 30 percent,” Kelaher said.

Candice Cattell, director of Stone Real Estate Manly, said downsizers on the north coast made up the majority of their buyers.

“There is quite a lot of demand for both beach front and harbor front, but [both buyer groups] I want somewhere with a level footpath to go everywhere,” she said.

She recently sold a two bedroom, one bathroom unit across from the beach for $2.75 million. Further back from the beach, a more modern two-bedroom, two-bathroom apartment with a large courtyard but no view has a guide price of $1.95 million.

“[But] You can find a good, very basic two-bedroom apartment for around the mid-$1 million mark, but it’s not in such a good location,” she said.